Connections Credit Union will begin offering Closed End Real Estate Lot Loans to well qualified borrowers as outlined below on Lots zoned Residential in Idaho. 

 

Borrowers must provide a Letter of Intent (LOI) to the Credit Union at the time of the loan request that outlines what they plan to do with the lot and within what timeframe. Upon maturity of the balloon loan, the LOI will be reviewed to determine if a MOD is an option.

 

A Maximum of 10 acres will be allowed for collateral. Additional acreage may be considered by the Credit Union CEO or VP of Lending on a case-by-case basis.

 

Available Products

1. 20 due in 5 Balloon: Five year fixed; amortized up to 20 years ($150,000 - $300,000)

2. 15 due in 5 Balloon: Five year fixed; amortized up to 15 years ($25,000 - $150,000)

 

Eligibility Matrix
Standard eligibility requirements apply as with principal residence. Property must be located in Idaho. An Appraisal, Flood Determination, and Smart Title Policy will be required for all Lot Loans.
 

Loan Type                       Property Type                                                                                              LTV
Purchase                         Lot Land Zoned Residential (No RAW Land)                                            MAX 80%
Cash Out Refinance       Lot Land Zoned Residential (No RAW Land) Vested to Borrower          MAX 50%

Amortization/Term
Payments are calculated by amortizing the loan over a 15- or 20-year term based off dollar amount financed. The note is fully payable at the end of the 5-year balloon maturity date OR may be modified with no cash out for another five-year balloon with a fee of $750. The Credit Union has the right to dis-allow modifications to any borrower at the five-year maturity of the balloon. A new LOI will be required if the MOD is approved by the Credit Union.

Credit Score Requirements
Minimum average FICO of 660 required.

Debt To Income Requirements
Maximum Debt to Income limited to 40% Gross.

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Loan Limits
Minimum loan amount of $25,000
Maximum loan amount of $300,000
Higher loan amounts may be considered and approved by the Credit Union CEO or VP of Lending on a case-by-case basis.

Qualifying Rate
See Closed End RE Rate Table for accurate rates.

Subordinations

The Credit Union will at no time subordinate its lien position for Lot Loans and must remain in first lien position for the duration of the loan.

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