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Third Federal Savings and Loan: 2025 Home Equity Review

Written by

Linda Bell,

Edited by

Troy Segal

Expert verified

Updated on May 14, 2025

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NMLS: 449401

Bankrate score

4.3

Our methodology

Customer score

3.8

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SCORE BREAKDOWN

Affordability

5.0

Availability

4.4

Borrower experience

3.4

EDITOR'S TAKE

Third Federal is one of an increasingly rare breed: a savings and loan association, dedicated to home financing and savings products for individuals. This heritage shows in its competitive rates, variety of loan loan options and lack of fees, all of which make it a very viable choice for home equity borrowers. Unfortunately, some other traditional characteristics may be a deterrent, like its limited footprint, in-person closings and undisclosed (but apparently stringent) criteria.

PROS

• No closing costs, minimum draws or prepayment penalties
• Offers Lowest Rate Guarantee program, which will pay you $1,000 if you find a lower home equity line of credit rate
• HELOCs are available as a first or second lien for owner-occupied properties

CONS

• Not available in nearly half the U.S.
• Repayment terms on fixed-rate home equity are limited to 10 years
• Closing has to take place in person, preferably at a Third Federal branch

Affordability

5.0

Availability

4.4

Borrower experience

3.4

• No closing costs, minimum draws or prepayment penalties
• Offers Lowest Rate Guarantee program, which will pay you $1,000 if you find a lower home equity line of credit rate
• HELOCs are available as a first or second lien for owner-occupied properties

• Not available in nearly half the U.S.
• Repayment terms on fixed-rate home equity are limited to 10 years
• Closing has to take place in person, preferably at a Third Federal branch

Find competitive home equity rates near you

Third Federal Savings and Loan overview

Like many S&Ls, Third Federal Savings and Loan Association dates from the Great Depression: It was founded in 1938 in Cleveland, OH, with an initial $50,000 in capital. Run by the son of the original founders, it now has assets of more than $14 billion. It now lends in more than half of U.S. states and operates full-service branches in Ohio and Florida.

Home equity loan products offered

Third Federal Savings and Loan offers home equity loans and lines of credit (HELOCs). With both products, you can borrow between $10,000 and $300,000. There are two types of home equity loans available:

Fixed-rate loans with a five-, 10, 15 or 20-year repayment term
Adjustable-rate loans with fixed interest for the first five years and a 30-year repayment term; the variable rate is the prime rate minus 1 percent

Third Federal’s HELOC, meanwhile, comes with a 10-year draw period and a 30-year repayment term. The HELOC rates are variable, which means they’ll change based on the current prime rate.

How Bankrate scored Third Federal Savings and Loan

Affordability: 5/5

APR: Third Federal advertises HELOC rates on its website that are a half percent below the prime rate, which it says saves the typical customer about $5,000 over the life of their line of credit.
Fees: You don’t need to worry about application or origination fees with either home equity loan type from Third Federal, and you can pay off your debt early without a penalty. The only extra charge you’ll need to pay is the $95 HELOC annual fee.

The lack of application fees and closing costs makes the S&L’s APRs virtually the same as its interest rates. And its interest rates are low, below prime. As a result, Third Federal earns a 5 out of 5 for affordability.

Availability: 4.4/5

Loan products: Third Federal Savings and Loan offers HELOCs and home equity loans with fixed and adjustable rates.
Footprint: Third Federal has operations in Washington D.C. and 27 states: Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Virginia, Washington and Wisconsin, but not all home equity products are available in all markets.
Credit score: Third Federal doesn’t disclose the minimum credit score needed for its loans on its website, a definite drawback. To qualify for a HELOC or home equity loan, you generally need at least a “fair” FICO score — in the mid-600s.

While Third Federal offers loan products with both fixed and adjustable rates, the lack of transparency around credit score requirements and limited footprint slightly limits the lender to a 4.4 out of 5 rating on availability.

Borrower experience: 3.4/5

Transparency: While Third Federal discloses APRs and the maximum loan-to-value (LTV) amounts on its website, it isn’t forthcoming about other qualification requirements.
Convenience: Third Federal offers a host of educational resources on its website, including a home equity guide and calculators. It also provides the usual online banking services.
Customer service: Third Federal is only available in 27 states and Washington D.C. Loan closings have to take place in one of their branches. Its customer care phone center is open six days a week.

While Third Federal has a clear, easy-to-navigate website, its limited reach and the requirement to close loans at a branch drops the lender a 3.4 out of 5 rating for borrower experience.

Bankrate insights

You can tap your home equity — the difference between your home's worth and what you owe on your mortgage — with a home equity loan or a HELOC. With those funds, you can tackle a variety of expenses, like debt consolidation or home renovations.

However, before you dive in, it's important to figure out your loan-to-value ratio (LTV). Lenders use your LTV to determine how much of your equity stake you can actually borrow. (It’s typically 80 percent, although some lenders allow you to access as much as 90 percent.) The amount of equity they’ll let you tap is one consideration when choosing a lender. Be it a retail bank, online lender or credit union, it may offer different home equity loan rates and terms, too. That’s why it’s important to shop around for the best deal.

Third Federal Savings and Loan reputation

Third Federal is not Better Business Bureau accredited, but it gets an A + rating. As of this writing, they have a 2.9 rating on TrustPilot.

What consumers say about Third Federal Savings and Loan

Customers on Bankrate rave about Third Federal’s loan rates (“the lowest I could find”), “fast and painless” application/closing process, and “fantastic” customer service with “courtesy thrown in.” The downside? Some cite the “ultra-conservative lending policy, not so friendly” if you’re self-employed or have a credit score under 700.

How to qualify for a HELOC with Third Federal Savings and Loan

Third Federal doesn’t disclose many details on the exact qualifications for a HELOC or home equity loan. However, when applying, you’ll need to provide two consecutive months’ worth of pay stubs for each borrower, as well as the last two years’ W-2 forms — pretty standard paperwork. To be eligible, you also must have at least 20 percent equity in your home, for loan amounts up to $200,000 — again, a standard percentage among lenders. For larger loan amounts, other LTV ratios may apply.

How to apply with Third Federal Savings and Loan

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. If you have any questions, you can reach the customer service team at 844-798-7784, 8:30 am to 5:00 pm (ET) Monday through Thursday, 8:30 am to 6:00 pm (ET) on Friday and 8:30 am to 1:30 pm (ET) on Saturday.

To determine a home equity lender’s Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender’s products and services. To assign our ratings, we assessed each mortgage lender across three core areas:
1. Affordability: Annual percentage rate (APR) - 80%; introductory APR - 20%
2. Availability: Licensing - 50%; credit score - 20%; loan minimum - 10%; draw requirement - 10%; loan products - 10%
3. Borrower experience: Rate transparency - 35%; convenience - 35%; customer service - 20%; fixed-rate options - 10%
Learn more about our methodology.

Compare Third Federal Savings and Loan with other lenders

Selected lender Third Federal Savings and Loan NMLS: 449401 Bankrate score 4.3 Bankrate scores are objectively determined by our editorial team. Interest rates, fees, loan terms, borrower requirements and customer service are some of the factors that make up Bankrate's score. Customer score 3.8 Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate. To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months.	Bankrate score Bankrate scores are objectively determined by our editorial team. Interest rates, fees, loan terms, borrower requirements and customer service are some of the factors that make up Bankrate's score. Customer score Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate. To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months. Read review	Bankrate score Bankrate scores are objectively determined by our editorial team. Interest rates, fees, loan terms, borrower requirements and customer service are some of the factors that make up Bankrate's score. Customer score Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate. To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months. Read review
Loan amount
$10,000-$300,000
Min. credit score required
Undisclosed
Repayment terms
10-year draw period, 30-year total repayment period for HELOCs; up to 30 years for home equity loans
Funds available in
Undisclosed
Recent customer review
Horrible scam company I should have received my loan I was approved but I never received anything gorilla1964

To help you make the most informed decisions, our home equity lender reviews team suggests an alternative home equity lender for each lender reviewed. In most cases, this alternative 1.) shares the same strength (affordability, availability or borrower experience) as the lender reviewed; and 2.) rates highly for Bankrate Score. In the event more than one lender meets these standards, we suggest the one with the higher Bankrate Score.

Third Federal Savings and Loan Association of Cleveland customer ratings and reviews

NMLS: 449401

3.8

121 ratings

Knowledge

Level of service

Professionalism

Responsiveness

72% of customers would recommend this lender.

of 85 reviews

The consumer reviews posted on Bankrate.com ("Bankrate") are individual, subjective opinions of reviewers, and not of Bankrate. Bankrate does not endorse any of the opinions expressed by reviewers or any responses to reviews.

Bankrate cannot guarantee or verify the accuracy of the opinions shared by individual reviewers, and reserves the right to reject or remove any review, at any time, for any reason at Bankrate’s sole discretion, including but not limited to those that Bankrate deems inappropriate, fraudulent, invalid, irrelevant, or otherwise outside the parameters of the Bankrate Review Guidelines, the Privacy Policy, or the Terms of Use.

In addition to collecting reviews on-site, Bankrate collaborated with third-party Slice MR to survey 450 users nationwide in July 2024. Bankrate and Slice MR collected, averaged and presented responses to nine questions. Users received an incentive for their feedback. Responses are based on individual experiences, and therefore cannot be verified for accuracy. Submissions with user ratings that are materially inconsistent with written sentiment have been removed. User ratings are unedited and have not been reviewed or approved by lenders, nor do these ratings reflect Bankrate’s own reviews of these lenders.

To help serve you with relevant information, the consumer reviews shown below are limited to only those that this advertiser has received during the past 12 months.

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Third Federal Savings and Loan: 2025 Home Equity Review

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