Connexus Credit Union
- Home equity loan, HELOC, interest-only HELOC
- HELOC: 5.99% until Oct. 2024, 6.49% until April 2025; 8.74% after introductory period; Home equity loan: from 7.20%
- N/A
- 800-845-5025 or info@connexus.org
Connexus Credit Union is a member-focused cooperative based out of Wisconsin that serves members in all 50 states.
In addition to banking services, Connexus offers home equity loans and home equity lines of credit (HELOCs), as well as mortgages, personal loans and auto loans. Although the credit union provides banking services across the country, its home equity loans aren’t available to homeowners in Alaska, Hawaii, Maryland or Texas.
Connexus Credit Union is one of our top home equity loan and HELOC lenders because of its competitive interest rates, range of customer support options and smooth application process.
Connexus Credit Union: At a glance
| Type of loan offered | Home equity loan, HELOC, interest-only HELOC |
| APR | HELOC: 5.99% until Oct. 2024, 6.49% until Apr. 2025; 8.74% after introductory periodHome equity loan: From 7.20% |
| Loan amount | $5,000 to $200,000 |
| Credit score minimum | N/A |
| Repayment terms | HELOC: 15-year draw period, 15-year repayment periodHome equity loan: Five to 15 years |
| Average time for approval | As little as one day |
If you apply online, you can receive a decision the same day, benefiting homeowners who need fast access to financing. Another benefit is that Connexus doesn’t ask for a new home appraisal to approve your loan, which most lenders require.
Homeowners looking for competitive interest rates and low minimum loan amounts are best suited for a Connexus home equity loan or HELOC. We also like that Connexus has a simple application process and a quick turnaround time for loan approval.
Pros and cons
Pros
Low interest rates: Connexus offers both low introductory rates and low standard rates, so even when your introductory rate expires, you’ll still be able to lock in a lower rate than you would with other lenders.
Low minimum loan amount: Some lenders have high minimum loan amounts, which means homeowners can end up paying interest on money they don’t actually need. But with a $5,000 minimum, you shouldn’t have to worry about paying interest on unnecessary funds.
Low monthly payments: Your minimum monthly payments can be as low as 1.5% of your total loan balance with a standard HELOC, which can provide breathing room in your monthly budget.
Cons
Limited availability: Connexus only has a handful of physical branches in Wisconsin, and its home equity loans and HELOCs aren’t available to homeowners in Alaska, Hawaii, Maryland or Texas.
Credit union membership required: You must become a member of Connexus to qualify for a home equity loan or HELOC.
High closing costs: Closing costs are often waived by lenders when it comes to HELOCs and home equity loans, but Connexus’ can range anywhere from $175 to $2,000 and are the homeowner’s responsibility.
Home equity loan options
Home equity loan: Connexus allows homeowners to borrow up to 90% of their home equity with a home equity loan. The credit union has loan terms ranging from five to 15 years.
HELOC: With a Connexus HELOC, you’ll get access to a revolving line of credit at a variable interest rate. It has a 15-year draw period with a 15-year repayment period. The minimum payment for a standard HELOC is 1.5% of the amount borrowed ($25 minimum).
Interest-only HELOC: Connexus also offers an interest-only HELOC. During the draw period, you’ll make interest-only payments based on the amount you borrow. During the repayment period, you’ll repay both the interest and principal.
Connexus doesn’t offer home equity loans or HELOCs to homeowners in Alaska, Hawaii, Maryland or Texas.
Fees
Connexus doesn’t charge an annual fee for its home equity loans or HELOCs, but you may be required to pay certain taxes and insurance depending on the state.
You’ll be required to cover your closing costs, which Connexus says can range from $175 to $2,000 depending on the loan terms and property location.
How to qualify
Because Connexus is a credit union, only members are eligible. You can join online by making a $5 donation to the Connexus Association, or you can see if you meet the credit union’s other membership requirements here.
Connexus has financial requirements to qualify for a home equity loan or HELOC. While the credit union doesn’t disclose its minimum credit score, most lenders look for a credit score of about 660. In addition to good credit, you must have an LTV ratio of 90% for home equity loans or 80% for HELOCs.
Lenders also typically want a low debt-to-income ratio below 36% but no higher than 43% to ensure you can comfortably afford to add another monthly payment to your budget.
How to apply for a home equity loan or HELOC with Connexus
You can apply for a home equity loan or HELOC with Connexus online and get approved in one day. You’ll want to have your personal and financial paperwork ready. You’ll need proof of sufficient income and stable employment with pay stubs and Form W-2, as well as your current mortgage statement to show you’ve been making prompt and regular payments.
Customer service
You can reach customer service at 800-845-5025 Monday through Friday from 8 a.m. to 8 p.m ET (5 a.m. to 5 p.m. PT) and on Saturdays from 9 a.m to noon ET. You can also schedule a consultation to speak with a loan specialist through the Connexus online portal. To reach customer service via email, you can message info@connexus.org or use the online chat function.
