In 2025, FNB offers homeowners flexible options to access the equity in their properties through its Home Equity Loans and HELOCs. These loans allow borrowers to tap into their home’s value for purposes such as home improvements, debt consolidation, or major expenses. With loan amounts up to $750,000 and consideration for credit scores as low as 640, FNB makes it easier for a wide range of homeowners to qualify. Borrowers can choose between fixed-rate installment loans, which offer predictable monthly payments, or a Home Equity Line of Credit (HELOC) that provides revolving credit and interest-only payments during the draw period.
FNB also features the Home Equity Plus Program, designed to enhance borrowing power and provide more flexibility, particularly for properties in majority-minority census tracts. The bank’s approach balances accessibility with responsible lending, ensuring homeowners can meet their financial goals without overextending themselves. Applications can be completed online, in person, or over the phone, making it convenient for homeowners to explore their options and access funds when needed.
What is a Home Equity Loan?
A home equity loan, often called a “second mortgage,” lets you borrow a lump sum against the equity you’ve built in your home. Your equity is the difference between your home’s market value and what you still owe on your primary mortgage.
Example:
- Home market value: $400,000
- Remaining mortgage: $250,000
- Available equity: $150,000
Lenders typically allow you to borrow up to 85% of your home’s value minus what you owe. In this case, 85% of $400,000 is $340,000. Subtract your $250,000 mortgage, and you could potentially access $90,000 in equity.
Home equity loans provide the money upfront in a single payment, repaid over a fixed term (10–20 years) with a fixed interest rate, ensuring predictable monthly payments.
Introducing FNB: A Trusted Banking Partner
FNB (First National Bank), headquartered in Pittsburgh, Pennsylvania, has served communities since 1864. Operating across multiple states—including Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, and South Carolina—FNB offers personal banking, business loans, mortgage refinancing, and home equity solutions.
With decades of experience and a reputation for community-focused banking, FNB is seen as a reliable lender for significant financial products like home equity loans.
FNB Home Equity Loan: Key Features & Benefits
Competitive Interest Rates
FNB home equity loans generally offer lower interest rates than unsecured loans. Your rate depends on credit score, loan-to-value ratio, and loan amount.
Flexible Loan Terms and Amounts
Terms typically range from 5 to 20 years, allowing borrowers to balance monthly payments with total interest costs.
Fixed Monthly Payments
Unlike HELOCs, these loans have fixed interest rates, so your payments remain consistent for the loan term.
Potential Tax Benefits*
Interest may be tax-deductible if used to “buy, build, or substantially improve” the home securing the loan. Consult a tax advisor for your situation.
FNB HELOC: The Flexible Alternative
A HELOC provides a revolving line of credit based on your home equity. You can draw funds as needed during the draw period (often 10 years) and pay interest only on what you borrow.
Draw vs. Repayment Period
- Draw Period: Access funds, make interest-only payments, or pay more.
- Repayment Period: Principal and interest payments begin after the draw period ends.
Variable Interest Rates
HELOCs usually have variable rates, meaning monthly payments can change with market conditions.
FNB Home Equity Loan vs. HELOC: Which is Right for You?
| Feature | Home Equity Loan | HELOC |
|---|---|---|
| Loan Type | Lump sum | Revolving line of credit |
| Interest Rate | Fixed | Variable (often tied to Prime Rate) |
| Monthly Payment | Predictable | Can fluctuate; often interest-only during draw period |
| Best For | Large, one-time expenses | Ongoing or uncertain expenses |
| Funds Access | All at once | As needed |
| Risk | Low | Higher |
| Use Cases | Renovations, debt consolidation | Emergencies, multi-phase projects |
Guidelines:
- Choose a home equity loan for predictable, one-time costs.
- Choose a HELOC for flexibility and ongoing financial needs.
Eligibility and Requirements
To qualify for an FNB home equity loan:
Credit Score: Preferably 660+; scores above 700 secure the best rates.
Debt-to-Income Ratio: Ideally below 43%.
Loan-to-Value Ratio (LTV): Maximum combined LTV usually 85%.
Documentation Needed:
- Government-issued ID & SSN
- Proof of income (pay stubs, W-2, tax returns)
- Bank & investment statements
- Existing debts and mortgage information
Step-by-Step Application Process
Applying for an FNB Home Equity Loan is designed to be straightforward, ensuring homeowners can access their home’s equity with ease. The first step is to assess your eligibility. FNB typically considers factors such as your credit score, income, current debts, and the amount of equity available in your home. Gathering documents like proof of income, property deeds, recent mortgage statements, and identification beforehand can help streamline the process.
Once eligibility is confirmed, the next step is to choose the right loan option. FNB offers both fixed-rate home equity loans and Home Equity Lines of Credit (HELOCs), each with distinct features. Fixed-rate loans provide predictable monthly payments, while HELOCs offer flexible access to funds as needed. Comparing interest rates, fees, and repayment terms will help you select the option that best fits your financial goals.
Finally, the formal application and approval process begins. You submit your completed application along with supporting documents either online or at your local FNB branch. The bank will review your information, order a property appraisal, and assess your financial standing. Upon approval, you will receive the loan agreement for review and signing. Once finalized, the funds are disbursed, either as a lump sum for fixed-rate loans or as a revolving credit line for HELOCs, allowing you to use your home’s equity efficiently.
- Pre-Qualification: Online or phone inquiry to estimate eligibility.
- Formal Application: Full application with a hard credit check.
- Home Appraisal: FNB appraises your home to confirm equity.
- Underwriting & Closing: Loan approval, paperwork signing, and fund disbursement.
| Step | Action | Key Points / Tips |
|---|---|---|
| 1 | Check Eligibility | Review credit score, income, debts, and available home equity. Gather documents like proof of income, mortgage statements, property deeds, and ID. |
| 2 | Choose Loan Type | Decide between a fixed-rate loan (predictable payments) or HELOC (flexible access). Compare interest rates, fees, and repayment terms. |
| 3 | Submit Application | Apply online or at a branch with all required documents. Ensure accuracy to avoid delays. |
| 4 | Property Appraisal & Review | FNB evaluates your financials and orders a home appraisal to determine loan amount. |
| 5 | Loan Approval & Signing | Review the loan agreement carefully, sign it, and finalize terms. |
| 6 | Fund Disbursement | Receive funds as a lump sum (fixed loan) or a credit line (HELOC) to use as needed. |
Understanding the Costs
FNB Home Equity Loans allow homeowners to leverage the value of their property to access funds, but it’s crucial to understand the costs involved before applying. The primary costs include interest rates, origination fees, and other associated charges. Interest rates can vary depending on the loan type—fixed or variable—and your credit profile, meaning that a better credit score may qualify you for lower rates. Being aware of these rates helps in estimating your monthly payments and long-term financial commitment.
Apart from interest, FNB may charge processing fees, appraisal fees, and legal costs. Processing or origination fees are usually a percentage of the loan amount and cover administrative work. Appraisal fees ensure the accurate valuation of your property, while legal fees cover documentation and registration requirements. Additionally, borrowers should consider potential prepayment penalties if they plan to repay the loan early. Understanding these costs upfront prevents surprises and helps in making an informed borrowing decision.
Another important aspect to consider is ongoing costs such as maintenance or insurance requirements tied to the loan. While some costs are one-time, others, like property insurance, are recurring and must be factored into your budget. Comparing these costs with the benefits of the loan, such as lower interest rates compared to unsecured loans, ensures that the home equity loan is a financially viable option for your needs.
FNB Home Equity Loan Costs Overview
| Cost Type | Typical Amount / Range | Description |
|---|---|---|
| Interest Rate | 6% – 12% (depending on credit & loan type) | Rate charged on the borrowed amount, fixed or variable. |
| Origination / Processing Fee | 0.5% – 1% of loan amount | Administrative fee for processing the loan application. |
| Appraisal Fee | $300 – $600 | Covers property valuation to determine loan eligibility. |
| Legal / Documentation Fee | $200 – $500 | Covers preparation of legal documents and registration. |
| Prepayment Penalty | Varies | Fee charged if the loan is repaid before the agreed term. |
| Property Insurance | Based on property value | Ongoing cost to ensure the property against risks, often required by FNB. |
In short:
- Application fees
- Home appraisal ($300–$600)
- Title search & insurance
- Recording fees
- Annual fees (common for HELOCs)
Some lenders may cover certain fees—ask FNB about promotions.
Current FNB Home Equity Loan Rates
As of October 2025, First National Bank (FNB) offers two primary types of home equity loans: Home Equity Installment Loans and Home Equity Lines of Credit (HELOCs). The interest rates for these products are variable and depend on several factors, including your creditworthiness and the prevailing U.S. Prime Rate. FNB provides the flexibility to borrow up to 85% of your home’s value, less any existing mortgage balances. For those in majority-minority census tracts, FNB’s Home Equity Plus program may offer enhanced borrowing power and favorable loan-to-value ratios.
To obtain the most accurate and current interest rates for your specific situation, it’s recommended to contact FNB directly or use their online tools to check rates based on your ZIP code. This will ensure you receive the most relevant information tailored to your financial profile and location.
Rates fluctuate daily. Factors influencing your rate:
- Credit score: Higher = lower rate
- LTV ratio: More equity = lower rate
- Loan amount & term
- DTI ratio: Lower ratio reduces perceived risk
Smart Uses of Home Equity
Recommended:
- Home renovations to increase property value
- Debt consolidation to reduce high-interest debt
- Education financing for degrees or certifications
- Real estate or investment opportunities (high risk)
Avoid: Using equity for vacations, luxury items, or cars.
FAQs
Q1: Can I get a loan with poor credit?
A: Possible with a low LTV, but rates may be higher.
Q2: How long does approval take?
A: Typically 2–6 weeks, depending on documentation and appraisal speed.
Q3: Are there prepayment penalties?
A: Depends on loan terms—verify with FNB before signing.
Q4: What if I sell my home?
A: Loan must be paid off at sale; proceeds first pay the primary mortgage.
Q5: How does a cash-out refinance compare?
A: Replaces your first mortgage, giving cash. A home equity loan keeps your first mortgage and adds a second loan.
12. Conclusion: Is an FNB Home Equity Loan Right for You?
FNB home equity loans offer predictable payments, competitive rates, and potential tax benefits. They are ideal for homeowners with significant equity and a clear purpose for the funds. Consider your financial goals carefully to maximize the value of your home equity.