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Frequently Asked Questions

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Can I prepay my HELOC?

Prepayment is allowed at any time without penalty. If you pay-off the balance and decide to close the line within the first two years, you will be charged a $395 Early Termination Fee.

What is the HELOC Early Termination fee?

$395 if the line is closed during the first two years.

Are there closing costs for a HELOC?

There are no closing costs.

Are properties in a trust eligible for a HELOC?

Yes, Direct Federal will allow properties that are placed in acceptable trusts. The trust must be reviewed by our Attorney and must meet all of our guidelines and requirements for the transaction to move forward. The applicant will need to provide a full copy of the Trust agreement for review. The applicant must be the trustee or one of the co-trustees. All trustees must be 18 years of age or older. Additionally, the trustee must be authorized to borrow money and encumber real estate.

Do you offer Home Equity in my area?

Direct Federal lends on properties located in the following locations:

Massachusetts Counties: Norfolk, Middlesex, Suffolk, Plymouth, Essex, Bristol, Worcester, and Barnstable

Rhode Island Counties: All Counties in Rhode Island

New Hampshire Counties: Rockingham, Hillsborough, and Cheshire

Where do HELOC closings take place?

HELOC closings take place at our Branch located in Needham, MA.

What documentation is required to close a home equity loan or line?

Required documentation will include but is not limited to: an insurance binder or insurance declaration page, income verification, mortgage statement, and valid license or identification.

How long does it take to apply and receive a decision for a HELOC?

It takes about five minutes to apply and you will have an answer within one business day.