Definition
- A Home Equity Loan is a loan for any legal purpose which uses the equity
in a member's home as the collateral. It is similar to a "second
mortgage." The property must be owner-occupied.
- Closed End Home Equity Loan - Our standard Home Equity
Loan type. This is a loan using home equity as collateral which is repaid in
substantially equal payments over a fixed period of time.
- Home Equity Line of Credit - HELOC is a form of revolving credit in which your home serves as collateral. Please contact us directly at 1 (866) 818-5187.
Fees
- Special: Security Service will pay all fees for Texas Home Equity Loans except the following:
- Appraisal - For loans $100,000 and above, appraisals are required and must be ordered by SSFCU. Appraisals are typically $400 paid at the member's expense. Most loans under $100,000 can be underwritten using the county tax appraisal.
- Off-Site Closing - Members who can't come to an SSFCU office for closing will pay any fees charged by the title company or attorney who conducts the closing. This fee is estimated to be $300.
- Title Insurance - for loan amounts $100,000 and above members will be required to pay for title insurance.
- Release of Lien Fees – are typically $16 to $24.
Loan Amounts
- The minimum loan amount is $4,000.
- The maximum loan amount is $200,000 or 80% of the equity in the home,
whichever is less.
- The first mortgage and the home equity loan combined may not exceed 80% of
the fair market value of the home.
Terms Lengths
- 1 year for every $1,000 up to $10,000
- For loan amounts $10,001 and up - the maximum term is 180 months (15 years).
RATE
- Please check our rate sheet for the low current rates on Security Service Home Equity loans!
Determining How Much You Can Borrow
- 80% of the equity in the home is the maximum which can be borrowed under Texas law.
- Equity will be determined based on the value of your home per county tax appraisal records (or by a separate appraisal ordered by Security Service FCU and paid for by the applicant, if required), less all outstanding mortgage balances.
- Use our equity worksheet to determine the maximum amount you are eligible to borrow.
- Actual amount you may borrow depends upon our usual credit criteria (credit history, income, other debts, etc.)
Who Can Borrow
- You must have paid off at least 20% of the principal owed on your mortgage
- First Lien property must be an owner occupied primary residence or secondary residence/vacation home. Second Lien property must be an owner occupied/primary residence. The property must be a one-to-four family property in Texas. No rental properties are allowed.
Lien Position
A Deed of Trust will be taken on the home. The SSFCU Home Equity Loan must have first or second lien position. If the home has a first mortgage and another lien such as a home equity, home improvement, wrap, or purchase money second, arrangements. These liens must be paid off with the Home Equity Loan.
Disbursement
The loan will be disbursed by the Home Equity Department into the member's account after the required waiting periods have passed.
Credit Approval
Normal credit criteria apply. Applicants must have an adequate source of
funds for repayment and income commensurate with the credit limit approved.
Miscellaneous Rules
- Credit life or accident & disability insurance is allowed on home equity loans. It can be purchased from an outside source.
- Property or properties with agricultural exemption are not eligible for a home equity loan unless the property is used for dairy production.
- Loan documents cannot be signed in the member's home. You must come into a Security Service FCU service center or close at an attorney's office or title company.
- Maximum of one home equity loan per 12 months.
- Spouse of owner must sign the closing documents whether or not they are on the title.
- HMDA information (demographic information for government tracking purposes) must be provided if the home equity loan is for purposes of home improvement.
Documentation
The member will provide:
- Completed loan application form
- Copy of warranty deed
- Verification of income: 2 paystubs to cover 30 day period / self employed last 2 years tax returns
- Proof of the current value of your home (latest tax appraisal or you may request an appraisal to be ordered by Security Service FCU at the applicant’s expense)
- Verification of mortgage balance (copy of statement)
- Proof of homeowner's insurance (copy of policy)
- Proof of flood insurance policy if property is in a flood zone (copy of policy)
- If loan purpose is home improvement, you must complete the HMDA form (government requirement) located within the Home Equity Application.
- The property must be owner-occupied (rental, investment, manufactured, mobile or modular homes are not allowed).
SSFCU will provide:
- Documents to be signed at closing for the loan and lien perfection
- All disclosures required by State and Federal laws.
Disclosures
Please read our disclosure statement carefully.
|
