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Home equity loans and personal loans are common financing options for homeowners needing extra funds, but they work differently. I wanted to provide a deep dive into whether OneMain Financial offers home equity loans in addition to their personal loan products. As an established lender with over 100 years of experience OneMain offers various lending solutions, so I researched to find out the details on their home equity loan offerings.
Overview of OneMain Financial
OneMain Financial is a leading personal lender that has been in business since 1912 when they originally operated asCommercial Credit Corporation. Headquartered in Evansville, Indiana, OneMain has over 1,500 branch locations nationwide.
They provide installment loans and finance products to help everyday Americans achieve financial progress. OneMain focuses on lending to borrowers with less-than-perfect credit, taking a more holistic review rather than relying solely on FICO credit scores.
Personal Loans Offered by OneMain
OneMain’s primary lending product is personal installment loans. These are fixed-rate, fixed-term loans issued in amounts from $1,500 up to $20,000 for eligible borrowers.
OneMain personal loans feature:
- Fixed rates ranging from 18.00% to 35.99% APR
- Loan terms between 24 and 60 months
- Fast access to funds – money deposited as soon as the next business day after loan approval
- Flexible use of funds for any purpose
Borrowers can apply for a personal loan from OneMain entirely online in most cases. OneMain also has physical branches nationwide where borrowers can apply in person and speak with a loan representative.
Key benefits of OneMain personal loans include:
- Competitive fixed rates compared to alternatives like credit cards or payday loans
- No collateral required – the loans are unsecured
- No prepayment penalties for early repayment
OneMain offers personal loans to borrowers with a wide span of credit scores, making them accessible to those who may not qualify with other lenders. They provide resources to help borrowers understand loan costs and repayment.
Does OneMain Offer Home Equity Loans?
After reviewing OneMain’s products and services extensively, I found that OneMain does not currently offer home equity loans. While they provide various personal loan options, home equity loans are not part of their lending portfolio.
OneMain specializes in unsecured installment lending, while home equity loans require borrowers to use their home as collateral for the loan. The differences between personal loans and home equity loans in terms of their structure and risks make them distinctly different financing vehicles.
Some key differences between OneMain personal loans and home equity loans include:
- Collateral – Personal loans are unsecured with no collateral, while home equity loans are secured by your home
- Qualification – Home equity loans have stricter requirements for home equity, credit scores, and debt-to-income ratios
- Risks – Home equity loans pose risk of foreclosure if payments are missed, while personal loans do not put your home at risk
- Interest rates – Home equity loans often have lower interest rates, but can have variable rates
- Tax benefits – Interest paid on home equity loans may be tax deductible, while personal loan interest usually is not
While OneMain does not offer products directly tied to home equity, they do provide helpful resources related to understanding home equity loans versus other financing options. Their website has an informative guide comparing personal loans and home equity loans.
This demonstrates that while home equity loans are not OneMain’s specialty, they aim to educate borrowers about the differences in loan products.
Alternatives to Home Equity Loans
Since OneMain does not provide home equity financing, here are a few alternatives for homeowners who need to leverage their home equity:
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Home equity loans from other lenders – Many banks, credit unions, and online lenders offer home equity loans and HELOCs. Be sure to shop and compare options for the best rates and terms.
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Cash-out refinance – Refinancing your mortgage and taking a portion of the proceeds as cash is one way to tap equity without a second loan. Closing costs apply so run the numbers to see if it makes sense.
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OneMain personal loans – While not tied to home equity, OneMain personal loans provide an unsecured way to access funds that doesn’t put your home at risk.
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401(k) or life insurance loans – Borrowing against retirement savings or life insurance cash value is an option, but also has risks like losing growth potential or lowering death benefits.
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Credit cards – Putting expenses on a 0% intro APR credit card can work for short-term borrowing needs if paid off promptly. The variable rates spike after the intro period.
The Bottom Line
OneMain Financial has provided over a century of lending services to everyday Americans. However, after conducting thorough research, I found that OneMain does not currently offer home equity loans or HELOCs. Their focus is on unsecured installment personal loans that do not use collateral.
While OneMain does not provide home equity financing directly, they provide educational resources to help borrowers understand how home equity loans differ from other options like personal loans. For homeowners seeking to leverage home equity, there are alternatives like loans from other lenders, refinancing, or unsecured loan products that each have their own pros and cons to weigh carefully.
Frequency of Entities
OneMain Financial: 11 times
home equity loans: 10 times
personal loans: 10 times
loans: 9 times
OneMain: 8 times
borrowers: 5 times
lenders: 3 times
financing: 3 times
collateral: 3 times
rates: 3 times
risks: 3 times
funds: 2 times
Avant vs. OneMain Financial at a glance
Avant and OneMain Financial have similar offers, though Avant may cost slightly less for some borrowers.
| Avant | OneMain Financial | |
|---|---|---|
| Bankrate score | 4.7 | 4.4 |
| Better for | Lower potential APR | Smaller loans |
| Loan amounts | $2,000-$35,000 | $1,500-$20,000* |
| APRs | 9.95%-35.99% | 18.00%-35.99% |
| Loan term lengths | 12-60 months | 24-60 months |
| Fees |
|
|
| Minimum credit score | 550 | No set minimum credit score |
| Time to funding | As soon as the next business day | As soon as the same day |
*Loan amounts vary by state of residence
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Pros
- Reasonable starting APR.
- Late payment grace period.
- Low minimum credit score requirement.
Cons
- High starting loan amount.
- Steep administrative fees.
- No joint applications.
Avant has a lower potential APR
Avant is a good choice if you meet its credit requirement because of the lower APR. While you could receive an APR similar to the range offered by OneMain Financial, the chance of a lower monthly payment makes applying worthwhile. Its lower fees and late payment grace period are also benefits.
Does one main financial do home equity loans?
FAQ
Is it hard to get a loan with OneMain Financial?
What credit score do I need to get a loan with OneMain Financial?
What kind of collateral does OneMain Financial require?
What bank does OneMain Financial use for a loan?
Are home equity loans better than personal loans?
Home equity loans are often larger than home improvement personal loans and can have longer pay-off periods.
What makes a good home equity loan lender?
The best home equity loan lenders excelled in areas that are historically important for this group, including speed, low lender fees and low home equity interest rates. The following is the weighting assigned to each category:
Should you apply for home equity loans with multiple lenders?
Applying for home equity loans with multiple lenders could help you get a lower rate or lower fees. It could also expand the amount of equity you’re able to borrow. For every application you submit, the lender will give you an official loan estimate with an interest rate and an itemized breakdown of costs.
How do home equity loans work?
Home equity loans require that you have some equity in your home. Equity is simply the difference between what you owe on your mortgage and the current value of your home. Since you own that portion of your home, you may be able to borrow against it. (See how to calculate your home’s equity below.)
Should you get a home equity loan?
A home equity loan can be a good way to convert the equity you’ve built up in your home into cash, especially if you invest that cash in home renovations that increase the value of your home. However, always remember that you’re putting your home on the line—if real estate values decrease, you could end up owing more than your home is worth.
What is a home equity loan?
Like personal loans, home equity loans are also installment loans. Sometimes called “home improvement loans,” because homeowners often use them to finance household renovations, they use your home as collateral. (If you’re unfamiliar with the concept of collateral, check out this primer on what collateral is and how it works .)