Connexus Credit Union is a member-focused cooperative based out of Wisconsin that serves members in all 50 states and has more than $5 billion in assets under management.Â
In addition to banking services, Connexus offers personal loans, auto loans and home equity loans, including traditional fixed-rate loans and two different types of home equity lines of credit, or HELOCs, all at competitive interest rates. 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.Â
Connexus Credit Union: At a glance
| Type of loan offered | Home equity loan | HELOC |
|---|---|---|
| APR | 7.96% | Introductory rates as low as 4.50%; standard rates as low as 6.99% |
| Loan amount | Minimum $5,000 | Minimum $5,000 |
| Credit score minimum | N/A | N/A |
| Repayment terms | 5 to 15 years | 15-year draw, 15-year repayment |
| Average time for approval | As little as one day | As little as one day |
Homeowners looking for competitive interest rates and low minimum loan amounts are best suited for a Connexus home equity loan or HELOC. Connexus also has a simple application process and quick turnaround time when it comes to loan approval.Â
If you apply online you can receive a decision in minutes, which benefits homeowners who need fast access to financing. Another benefit for people pressed for time is that Connexus doesn't ask for a new home appraisal to approve your loan, which is something most lenders require.
What we like
- 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.Â
- 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.Â
- 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.Â
What we don't like
- 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.Â
- 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
Connexus offers a traditional home equity loan and two types of HELOCs -- an interest-only HELOC and a standard HELOC. Keep in mind, these loans aren't available to homeowners in Alaska, Hawaii, Maryland or Texas. The credit union also offers mortgages and refinancing.Â
Fees
Connexus doesn't charge an annual fee for its home loans, but you may be required to pay certain taxes and insurance depending on what state you're taking out the loan in. You'll be required to cover your closing costs, which Connexus says can range anywhere from $175 to $2,000.
How to qualify
Although Connexus doesn't disclose its minimum credit score, the higher your score, the more attractive a loan candidate you'll make to banks and lenders. In addition to good credit, you need to have at least 20% equity built up in your home to be approved for a Connexus home equity loan. Lenders also typically want to see a low to debt-to-income, or DTI, ratio below 36% but no higher than 43%, to ensure you can comfortably afford to add another monthly payment to your budget.Â
Getting started
If you apply for your home equity loan online you can be approved in as little as one day, so you need to make sure you have all of your personal and financial paperwork ready to go. You'll need proof of sufficient income and stable employment in the form of items such as pay stubs and your Form W-2, as well as your current mortgage statements 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, or schedule a consultation to speak with a loan specialist through the Connexus online portal. To reach customer service via email you can send a message to info@connexus.org or use the online chat function.
