Updated: November 16, 2024
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The best HELOC lender in Virginia is Manufacturers and Traders Trust Company with a MoneyGeek score of 96 out of 100. The runner-up is Truist Bank with a MoneyGeek score of 95 out of 100.
The average HELOC limit in Virginia is $112,542. How much you can borrow often depends on factors like your home's equity, outstanding mortgage balance and credit score.
Comparing rates can help you find lenders suited to your needs. MoneyGeek compiled the best HELOC rates in Virginia, which update weekly to assist you in your journey.
The average HELOC balance in Virginia for the third quarter of 2023 is $38,885, according to Experian. It's important to calculate your HELOC payments to manage this type of debt effectively and plan for any adjustments in your financial obligations.
Use our HELOC payment calculator to estimate your monthly payments based on the amount drawn, APR, and loan terms. The full amortization schedule provided shows how much of your payments go toward interest and principal over time.
This HELOC payment calculator assumes that you take out one lump sum at the start of your interest-only period. Your actual payoff schedule will vary depending on your interest rate and market conditions.
Draw Period Payment
Repayment Period Payment
YEAR
Home Equity Lines of Credit (HELOCs) are popular in Virginia due to their flexibility and the control they offer over borrowing amounts and repayment timelines. This makes them an attractive option for homeowners looking to manage their finances effectively.
Here is a list of ways you can use a HELOC.
Home improvements or renovations
A HELOC is ideal for home improvements as costs can fluctuate. It offers flexibility to manage unexpected expenses, ensuring your renovation dreams become reality without financial strain.
Consolidating high-interest debt
With average 2023 consumer debt in Virginia at $128,386, a HELOC can simplify debt consolidation. It lowers interest rates and streamlines payments, easing financial burdens.
Funding education expenses
Using a HELOC for education expenses is smarter than other debts. It covers tuition, books, and housing, offering lower interest rates and flexible repayment options.
Investment properties
A HELOC can finance investment properties, offering potential returns. Shop for the best HELOC lenders for investment property to secure favorable rates and terms, maximizing your investment potential.
Understanding the steps to apply for a HELOC in Virginia can simplify your journey toward accessing home equity. We've outlined this process in six straightforward steps below.
Evaluating your current financial situation is key to understanding your credit score, debt-to-income ratio, and home equity. In Virginia, the average credit score is 722 in the third quarter of 2023 based on Experian data. This score can enhance your chances of HELOC approval.
Exploring different rates in Virginia can help you secure the best HELOC deal. It's also wise to consider other lender features, such as repayment terms, fees, and the option for a fixed-rate HELOC. These factors can significantly impact your overall borrowing experience.
Having the necessary documents ready can streamline your HELOC application process. Commonly required documents include proof of income, recent tax returns, and information about your mortgage and home value. Being prepared can help avoid unnecessary delays.
Most lenders offer the convenience of online applications, but you can also apply in person if your lender has a branch. It's crucial to check your application for errors or omissions to prevent delays in processing.
Some lenders may require a home appraisal to determine your home's current market value. A home appraisal involves a professional assessment of your property's worth, which can impact your HELOC terms.
The HELOC approval process typically takes two to six weeks. Once approved, you'll proceed to closing, which involves signing documents and possibly paying closing costs. Some lenders may offer to cover part of these costs.
The average HELOC limit in Virginia for the third quarter of 2023 is $112,542, according to Experian. The maximum amount you can borrow is typically tied to the equity you have in your home. The more equity you have, the higher your potential credit limit could be.
Check out the table below to see the range of credit lines offered by Virginia lenders in our database.
| Bank of America | $15,000 to $1,000,000 |
| HSBC Bank USA | Up to $500,000 |
| Manufacturers and Traders Trust Company | $15,000 to $1,000,000 |
| PNC Bank | $10,000 to $1,000,000 |
| TD Bank | From $25,000 |
| Truist Bank | Up to $500,000 |
When shopping for a HELOC, most people focus only on the interest rate. Instead, you should focus on the annual percentage rate (APR) as that is the true cost of what you are paying back. Also consider any fees the lender may be charging you. A lower rate with higher fees can be deceptive.
Manufacturers and Traders Trust Company is the best HELOC lender in Virginia, with a MoneyGeek score of 96 out of 100. It excels in customer service and education, reputation and transparency, and offers competitive interest rates.
A bad credit score is generally below 580 for FICO scores and between 300 and 600 for VantageScore. When looking for the best HELOC lenders for bad credit, consider factors like flexible eligibility requirements, reasonable interest rates and transparent terms.
Consider factors such as interest rates, fees, borrowing limits, repayment terms and lender reputation when choosing a HELOC lender in Virginia.
Common fees associated with HELOCs include origination fees, annual fees, application fees and early closure fees.
The typical draw period for HELOCs usually lasts 10 years, but some lenders may offer more flexible options.
Look for lenders that offer fixed-rate HELOC options or allow interest-only payments during the draw period for flexible repayment options.
MoneyGeek's scoring system offers a comprehensive overview of how each lender performed in areas that matter most to borrowers. Scores were allocated based on the inclusion or exclusion of certain desirable features in various critical categories.
Our analysis was completed in October 2024 and considered different banks and credit unions in Virginia from S&P Global's SNL Depository Rates dataset.
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.
