Third Federal Savings and Loan: 2025 Home Equity Review

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. 

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.