Bethpage Home Equity Review
Bethpage Federal Credit Union (FCU) is a financial institution headquartered in Long Island, New York. It offers several services, including banking, mortgage lending, investment services, and home equity lines of credit.
The credit union has more than 30 locations across Long Island, though it services members throughout the country. If you’re considering using Bethpage FCU for a HELOC, here’s what you need to know.
on Bethpage’s website
What we like:
Fixed, introductory rate
| Rates (APR) | 12-month introductory rate starting at 5.74%, with post-introductory rates starting at 6.25% |
| Loan amounts | $25,000 to $500,000, with some higher exceptions allowed |
| Repayment terms | 5, 10, or 20 years |
| Minimum credit score | Not disclosed |
In this review:
How does Bethpage help me access my home equity?
Bethpage offers a HELOC that allows you to turn your home’s equity into cash. You can use funds from Bethpage’s HELOC for any purpose, including home renovations, consolidating debt, or paying college tuition.
The HELOC is Bethpage’s only home equity product. It doesn’t offer a standalone home equity loan, though it allows converting some or all of your HELOC into a fixed-rate loan, similar to a home equity loan.
| Bethpage HELOC terms | |
| Rates (APR) | Variable or fixed |
| Rate discounts | Discounts if you set up automatic transfers from a Bethpage personal savings or checking account |
| Loan amounts | Minimum $25,000 to qualify for introductory rateMaximum $500,000, with some exceptions |
| Draw period | 10 years |
| Repayment period | 5, 10, or 20 years |
| Maximum LTV | 75% to qualify for introductory rate |
| Minimum credit score | Not disclosed |
| Minimum income | Not disclosed |
| Fees | No application, origination, or appraisal feesNo closing costs |
Pros and cons of a Bethpage HELOC
As with any lender, working with Bethpage has advantages and disadvantages. Make sure to consider both sides of the coin before deciding whether it’s a good fit for your home equity needs.
- Fixed-rate options: Bethpage allows you to convert part or all of your HELOC to a fixed-rate option, ensuring consistent, reliable payments.
- Full range of financial services: If you’re looking for a lender to help with other facets of your financial life, Bethpage’s many services can help.
- Zero fees: Bethpage’s HELOCs come with no application, origination, or appraisal fees. The credit union also pays all closing costs for loan amounts under $500,000.
- Limited physical locations: If you want a lender you can visit in person, Bethpage may not be the right fit unless you’re in the Long Island area, where all 30-plus of its locations are.
- Below-average customer reviews: Online reviews of Bethpage are worrisome. See below for a full breakdown of the credit union’s customer reviews and ratings.
- Unclear credit score and debt-to-income (DTI) minimums: The credit union considers DTI and credit score in HELOC applications, but it doesn’t stipulate the minimums for these factors.
If you’re not sure Bethpage FCU is a good fit for your HELOC needs, consider other institutions. Check out our guide to the best HELOC lenders for more recommendations.
What do Bethpage’s customers say about the company?
| Source | Rating | Number of reviews |
| Better Business Bureau | 1.26 / 5 stars | 20 |
| Yelp | 2 / 5 stars | 103 |
| Trustpilot | 3 / 5 stars | 3 |
Ratings were collected on October 9, 2022.
Customer reviews and ratings are critical when determining what lender to use. They can offer insight into a company’s service and show you what to expect as a client.
Bethpage’s customer reviews are poor. Many note long hold times, conflicting information from employees, and trouble with loan applications. The credit union also had 88 complaints with the Better Business Bureau between October 2019 and October 2022.
Positive feedback from customer reviews includes: friendly employees, helpful loan officers, and a welcoming in-person environment. As one customer on the crowd-sourced business review app Yelp put it, “They are in tune with the needs of members.”
Do I qualify for a HELOC from Bethpage?
Bethpage doesn’t offer much guidance on its eligibility requirements.
When evaluating your application, Bethpage says it considers your:
- Credit history
- Employment
- Income
- Home value
- Current mortgage balance
- Loan amount
With a traditional HELOC (or any home equity product), the more valuable your home is and the lower your mortgage balance, the more you can borrow.
The credit union isn’t specific about what property types it allows you to borrow against, but it does not issue HELOCs or mortgage loans on properties in Texas.
Bethpage is clear about its membership requirement: To get a HELOC from the institution, borrowers must become members of Bethpage FCU by opening a savings account with a minimum of $5.
How do I apply with Bethpage?
Bethpage allows you to apply for a HELOC in person, on the phone, or using its online application.
If you choose the online application option, you’ll fill out details regarding your home, your current mortgage balance, the purpose of the loan, and the amount you need. You will also include information about your employment, income, and intended co-applicant.
Bethpage’s required financial documentation includes:
- Pay stubs for the last 30 days
- The previous two years of W-2s
- Your two most recent bank statements
- The last two years of federal tax returns
- Documentation of self-employment, rental, or retirement income, if applicable
Once it receives your application, Bethpage will email you a preapproval letter, and a lending specialist will reach out to move the process along. Depending on your loan-to-value amount, loan size, and location, you may need an appraisal.
The typical time to close on a Bethpage HELOC is six to 10 weeks.
How does Bethpage determine how much I can borrow?
The most significant factor in how much you can borrow is the lender’s maximum loan-to-value (LTV) ratio, which stipulates how much of your home’s value your loan balances can take up.
For Bethpage’s introductory rate, the maximum LTV is 75%, which means your HELOC and mortgage balance (combined) can’t equal more than 75% of your home’s current value.
Here’s an example:
| Current home value | Outstanding mortgage debt | Bethpage’s max LTV (75%) |
| $450,000 | $210,000 | $337,500 |
To determine your maximum possible HELOC from Bethpage, you’d subtract your outstanding mortgage ($210,000) from the max LTV ($337,500) to get $127,500.
Keep in mind: Bethpage will also consider your credit history, debt-to-income ratio, and other criteria when determining how much you can borrow, so you may not qualify for this maximum amount.
What does the appraisal process look like?
Appraisals are a common part of the home lending process. They give lenders an unbiased estimate of a home’s worth, which they can then use to determine what loan amount is appropriate.
According to Bethpage’s HELOC FAQ, if your home is outside Long Island, appraisals are required to confirm its market value. Condos—even those in Long Island—also require appraisals.
During this process, a third-party appraiser will evaluate your home’s condition, compare it to other properties in the area, and use market data to determine what it could fetch in the current market. Then Bethpage will use this number—the appraised value—to determine how much you can borrow from your home equity.
Appraisals come in many forms. They might be done in person, via drive-by, or using property records and online data. Bethpage will determine which type of appraisal is best for your property.
Does Bethpage charge any fees?
One of the biggest perks of a Bethpage credit union home equity line is no application, origination, or appraisal fees. You won’t incur closing costs for loan amounts under $500,000.
However, borrowers are responsible for depositing $5 into a savings account to become members of Bethpage before closing on their loan.
Does Bethpage have a customer service team?
Bethpage offers multiple customer service venues:
- In person: You can walk into one of its 30-plus physical branches throughout Long Island.
- Phone: You can connect with a branch directly, or call Bethpage’s customer service center at 1-800-628-7070 between 7:30 a.m. and 7 p.m. Eastern Monday through Friday, and on Saturday between 8 a.m. and 2 p.m. Eastern.
- Email: Once you’re a member, you can also contact a customer service representative through the messaging center in your member portal.
Published at Mon, 24 Oct 2022 16:28:04 -0500
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