Third Federal Bank
Courtesy of Third Federal

Third Federal Savings and Loan was founded in 1938 during the Great Depression 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, or HELOCs, in 22 states.

Third Federal’s mission focuses on helping customers achieve homeownership and financial security, and the lender’s home equity loans and line of credit are involved in helping make that happen.

Lender snapshot

If you’re considering Third Federal Savings and Loan for a home equity loan or line of credit, here are a few key facts to know about the lender before you apply:

  • Offers home equity loans in eight states and HELOCs in 22 states.
  • Provides a home equity line of credit, a fixed-rate home equity loan and a 5/1 adjustable home equity loan.
  • Offers borrowers a lowest-rate guarantee.
  • Charges no application fee or prepayment penalty.

Get pre-qualified

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.

Pros and cons

As we dig deeper into what Third Federal Savings and Loan offers, here are some benefits and drawbacks to consider.


  • Lowest-rate guarantee: With Third Federal, you’ll have a good chance of getting the lowest rate that you qualify for. Just be sure to shop around, and if the lender can’t beat a competitor’s rate, you’ll get a cool $1,000.
  • Offers 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.
  • Competitive interest rates: The lender’s APRs are low compared with top home equity lenders. In early May 2019, the APR on a HELOC was 4.49 percent, with a five-year loan going for 5.29 percent and the 5/1 adjustable rate product coming in at a 4.87 percent APR.
  • 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 the first year.


  • Limited availability: The lender offers home equity lines of credit in more states than home equity loans, but their reach is still relatively limited.
  • Charges an annual fee: It’s not uncommon to pay an annual fee on a home equity line of credit, but there are ways to avoid one with other lenders.
  • No interest-only payment option: If you’re looking for a home equity product that allows you to pay interest only for a time, you won’t find one with Third Federal.
  • Unknown eligibility requirements: The bank doesn’t publicly disclose its minimum credit score or income requirements, forcing you to apply to find out whether you qualify.

Mortgage products

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.

How much you can borrow depends on how much equity you have in your home. As a rule, Third Federal requires that you have a loan-to-value ratio of at least 80 percent after your loan or line of credit. So if you have 70 percent before applying, you can get up to 10 percent of your home’s equity.

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 from a five- or 10-year repayment term 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 total repayment period. There is, however, no minimum draw requirement. Interest rates are variable, which means they’ll change each year based on the current prime rate. The $65 annual fee is waived the first year.

Lender costs

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 fees you need to worry about are the home equity line of credit annual fee, which is $65 and waived the first year, and late fees.

Third Federal has a lowest-rate guarantee on all of its home equity products, which means that if you find a lower rate than what the lender offers, it’ll either beat it or give you $1,000. So even if you’re planning to work with Third Federal, it can pay to shop around and compare offers.

Borrower requirements

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.

And as previously mentioned, your loan-to-value ratio cannot exceed 80 percent after the loan amount has been disbursed, so you may need to reduce your requested amount to stay in line with that ceiling.

How to apply

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, which type of loan you want, and information about your assets, income and monthly expenses.

You may also need to provide a copy of your driver’s license and some other documents during the application process.

If you don’t have time to complete the application in one go, you can save it and continue from where you left off later.

Get pre-qualified

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.

Get started

If you’re considering a home equity loan or line of credit from Third Federal Savings and Loan, going through the application process will give you an idea of what size loan you qualify for.

If you have any questions, you can reach the lender’s customer service team at (800) 844-7333. Representatives are available Monday through Thursday from 8:30 a.m. to 5 p.m. Eastern, on Friday from 8:30 a.m. to 6 p.m. Eastern, and Saturday from 8:30 a.m. to 1:30 p.m. Eastern.

Alternatively, you can send them an email through the Contact Us page. As with any loan, shop around and compare at least three to five lenders to make sure you get the best deal for you.

How Bankrate Rates Third Federal Savings and Loan

Overall Score 3.6
Availability 2.9
Affordability 4.0
Customer Experience 4.0

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.