Third Federal Savings and Loan: 2021 Home Equity Review

Courtesy of Third Federal
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Third Federal Savings and Loan was founded in 1938 in Cleveland, Ohio. The bank has 37 branches in Ohio and Florida and offers home equity loans in eight states and home equity lines of credit (HELOCs) in 25 states and Washington, D.C.

Third Federal’s mission focuses on helping customers achieve homeownership and financial security. The lender’s home equity products support that mission, giving customers access to low interest rates and long repayment terms.

Third Federal snapshot

Loan types offered Home equity loan, HELOC
APR range Home equity loan: Starting at 3.29%
HELOC: Starting at 2.24%
Loan amount range Home equity loan: $10,000 to $200,000
HELOC: $10,000 to $200,000
Minimum credit score required Not specified
Repayment terms Home equity loan: 5 to 30 years
HELOC: 10-year draw period and 30-year repayment period
Average time to approval Not specified


Third Federal may be a good choice for some borrowers for a few reasons:

  • Lowest-rate guarantee: With Third Federal, you could qualify for either a rate match or a $1,000 check if you find a lower rate with a competitor.
  • Flexible loan options: If you’re getting a home equity loan, you can choose between fixed-rate or adjustable-rate terms, giving you some flexibility based on your needs.
  • Light on fees: There is no application or origination fee, and also no prepayment penalty. There is a $65 annual fee on the home equity line of credit, but it’s waived in the first year.


Third Federal does have a few downsides that are worth considering:

  • Limited availability: The lender offers home equity lines of credit in more states than home equity loans, but its reach is still relatively limited, serving about half the country.
  • Annual fee on the HELOC: The lender charges a $65 annual fee that is waived in the first year.
  • Unknown eligibility requirements: The bank doesn’t publicly disclose its minimum credit score or income requirements, meaning you must apply to find out whether you qualify.

Types of fees charged

You don’t need to worry about application or origination fees with either loan type, and you can pay off your debt early without a penalty. The only fee you need to worry about is the $65 HELOC annual fee, which is waived in the first year.

Loan products offered

Third Federal Savings and Loan offers home equity loans and lines of credit. With both products, you can borrow between $10,000 and $200,000.

Home equity loans

The bank offers two types of home equity loans: a fixed-rate option and an adjustable-rate option. With its fixed-rate loans, you can choose repayment terms from five to 10 years, and your interest rate and monthly payment remain the same throughout the life of the loan.

With an adjustable-rate loan, you’ll get a fixed interest rate for five years, then an adjustable rate after that. The interest rate can change once a year based on the current prime rate minus 1 percent. The maximum term for the 5/1 home equity loan is 30 years.

Home equity line of credit

Third Federal’s home equity line of credit comes with a 10-year draw period and a 30-year repayment period. Interest rates are variable, which means that they’ll change based on the current prime rate.

How to qualify for a home equity loan with Third Federal

Third Federal doesn’t disclose its eligibility requirements publicly. However, during the application process, you will need to provide two consecutive months’ worth of pay stubs for each borrower, as well as the last two years’ W-2 forms.

In order to qualify, you also must have at least 20 percent equity in your home — or a loan-to-value ratio of 80 percent.

How to get started

You can apply for a Third Federal home equity loan or line of credit online through the bank’s website.

You’ll start by providing your email address and some other information to set up the application. You’ll also need to provide some information about yourself and the property, your desired loan and your assets, income and monthly expenses.

If you have any questions, you can reach the lender’s customer service team at 844-798-7784. Representatives are available Monday through Thursday from 8:30 a.m. to 5 p.m. ET, on Friday from 8:30 a.m. to 6 p.m. ET and on Saturday from 8:30 a.m. to 1:30 p.m. ET.

How Bankrate rates Third Federal Savings and Loan

Overall Score 4.4
Availability 3.6
Affordability 4.9
Customer Experience 4.8

Editorial disclosure: All reviews are prepared by staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.

Written by
Ben Luthi
Contributing writer
Ben Luthi is a personal finance and travel writer who loves helping people learn how to live life more fully. His work has appeared in several publications, including U.S. News & World Report, USA Today, Yahoo! Finance and more.
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