time icon 6 min read update icon Sept. 20, 2019
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State Farm offers home equity loans with low interestrates and a high loan-to-value ratio. Loan amounts start as low as $10,000.

State Farm offers home equity loans with competitive APRs as low as 4.99%,and a convenient fixed monthly payment schedule. There are no application fees and interest may be tax deductible,though you will need to check with your tax advisor. Seniors can choose the payment schedule they want for loan repayment.

State Farm home equity loans can help a senior pay for home improvements, medical expenses, or other major purchases. Home equity loans can also be used to refinance an existing home equity line.

Grandfolk Scoring
Fees 7/10
Loan amount 10/10
Repayment period 7/10
Contract obligation 10/10
Interest rate discount 4/10
Interest rate type 10/10
Line of credit 10/10
Interest rates 8/10
Cost 9/10
Customer Support 9/10
Ease 8/10
Cancellation 8/10
Will I pay initial,annual, or other fees?
No application fees, but other fees may apply
Loan amount
What are the minimum and maximum loans offered?
Repayment period
How long will I have to repay the loan?
Repayment periods vary
Contract obligation
What will my obligations include?
The loan must be repaid in full
Interest rate discount
Are any discounts offered on interest rates?
No discounts are mentioned, but check with an agent to be sure
Interest rate type
Variable or fixed interest rate?
Line of credit
Is a home equity line of credit offered?
Interest rates
What annual percentage rates are offered?
APRs start at 4.99% but can vary; check with State Farm
Monthly fee
Depends on the size of your loan
Customer Support
Ease of access
You can contact customer support online or by phone
How easy to put to use?
It’s easy to apply online or by phone
Cost or difficulty to cancel?
Loans must be repaid in full
Age Score:
50-64 Years
65-74 Years
75-84 Years

State Farm offers interest rates as low as 4.99%,and seniors who have built up a lot of equity in their homesare ideal candidates for these loans. When interest rates are low, such as with State Farm, seniors can capitalize on home equity to pay for large expenses and use the loan much like an insurance policy.

However, seniors who are retired or have low credit scoresmay find it challenging to qualify for a loan.Seniors with age-related cognitive and vision issues may also find it difficult to interact with the State Farm website to apply for a loan. If this is your situation, it may be wise to ask a family member to help you apply.

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A loan from State Farm is a good option for seniors who are looking to obtain money for an important medical expense, but seniors with a limited life expectancy may want to opt for a shorter repayment period, or work with a financial planner to make sure the debt can be paid off eventually. For seniors with health problems and a steady income, State Farm home equity loans are a good option. However, seniors with escalating health problems can face foreclosure on their home if monthly payments are not made. 

Seniors in all states of health should work with a financial planner to ensure that they will be able to make all State Farm home equity loan payments in a timely fashion.


  • There are no fees to apply for a State Farmhome equity loan.
  • State Farm has one of the higher available loan-to-value ratios at 85%, although this may vary based on credit score, loan amount, and repayment term.The loan-to-value ratio refers to the amount of equity one can take out as a loan.
  • State Farm has a Pocket Agent Mobile App available at the App Store and Google Play. This app enables customers to check balances, pay bills, and more.
  • State Farm offers a minimum loan amount lower than you can find at most banks ($10,000).
  • State Farm’s minimum monthly payments are only $100, which could be an affordable option for some seniors.


  • Taking out a home equity loan could result in foreclosure on a senior’s property or properties if they cannot make the monthly payments.Therefore, seniors should speak with a financial planner before applying for a State Farm home equity loan.
  • Home equity payment options include automatic deduction from a bank account or payments by mail. Payments cannot be made online or in person. 
  • Seniors who have late payments or other negative information in their credit reports may have to provide additional information during the loan approval process.

Bottom Line:

State Farm offers home equity loans without application fees. These loans can help seniors make improvements to their homes, pay for medical expenses, or pay for other major purchases.State Farm home equity loans boast a competitive APR as low as 4.99% in some cases, and a convenient fixed monthly payment schedule.

State Farm was the recipient of the Corporate Social Responsibility Award from the Financial Services Roundtable in 2016 and 2017.For seniors who are looking for a home equity loan with no application fees and a low fixed interest rate, State Farm may be a good option.

Frequently Asked Questions:

How can I estimate the value of my loan?

To have a State Farm Mortgage Loan Originator estimate your home equity loan amount and monthly payments, you can contact your local State Farm agent or fill out an inquiry form online. Another option is to use the State Farm Line of Credit Calculator available on the website. 

Can I apply for a loan with this company if I am retired?

Yes, but you may need to supply additional documents to verify that you will be able to afford the minimum monthly payment of $100.  
How much can I borrow, and can I start paying off my loan early?

You can borrow up to a maximum combined loan-to-value (LTV) of 85%. The exact amount will be dependent on several different factors. Loans that are paid off and closed within three yearswill incur an Early Closure Fee of up to $500.

More Information:

Product Details


StateFarm offers home equity loans with a competitive fixed interest rate for the life of the loan, and a convenientmonthly payment schedule.

Package Details:

StateFarm offers home equity loanswith a fixedAPR and terms that may vary.The interest rate and maximum combined loan-to-value (CLTV) of up to 85% can change based on a customer’s credit score, loan amount, and repayment term. The loan amount can range from $10,000 to $500,000. State Farm does not require an application fee, and has low lender closing fees.Interest on home equity loans may be tax-deductible, thus reducing your tax burden. An early closure fee may be levied if the account is paid off and closed within three years of opening.

Optional Accessories or Add-on Services: State Farm also offers Home Equity Lines of Credit, which allow seniors to tap into their home’s equity.

Additional Company Details

Contract Details: 

There is no cancellation procedure for State Farm home equity loans. To cancel the loan, it must be paid in full, including any interest and associated fees.

Fees:There are no application fees for a State Farm home equity loan, but other fees may apply. Interest rate and maximum loan amount depend on a variety of factors including customer’s credit score, loan amount, and repayment terms. Check with your local State Farm office for complete terms and conditions.If the loan is paid in full and closed within the first three years, State Farm will charge a $500 Early Closure Fee.

Warranty: None

Accreditations: State Farm is not accredited by the Better Business Bureau, but maintains a rating of A+. 

Company Details: State Farm was founded in 1922 by a retired farmer, G. J. Mecherle, to sell automobile insurance policies. Today, the company boasts 83 million policies and accounts. The mission of State Farm is to, “help people manage the risks of everyday life, recover from the unexpected, and realize their dreams.”


State Farm Bank
P.O. Box 419001
Saint Louis, MO 63141-9001
Tel: 888-556-3498

Sheeva Azma - Senior Advisor

Sheeva is senior researcher with Grandfolk® providing in-depth product and service reviews to empower senior buying decisions.

Leonard smith
For myself
68 Years
Kansas city mo

My name is Leonard Smith my credit score is not good I think it about 525 can I get a loan
I have insurance with you