Non-Owner-Occupied Properties can be 1-4 Family Residences that are already vested in the borrower(s)' name(s). 

 

Owner Occupied = Member resides at that property.  

Non-Owner Occupied = Member does NOT reside at that property.  

Second homes that do not derive income, and the members live in the home at some point during the year would not fit this category but would be a regular HELOC.  

 

Eligible home types:  1-4 Family Residential Homes.  Duplex, Townhomes, Homes with Rental in Basement.  Non-business purpose.  (Home must be vested in borrower(s)’ name(s), purchases must run through Mortgage Department.)

 

Ineligible home types: Commercial Properties, Apartment Complexes, New Purchases.  

 

Be sure to use the NEW Collateral Code of "HELOC 1 NON OWNER OCCUPIED" or "HELOC 2 NON OWNER OCCUPIED" when booking the loan.
 

Fees on Non-Owner-Occupied Homes (GL# 135.00): 

Please put the descriptions as: “HELOC Non-Owner Fee-Last Name”

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Loan Amount                                   Origination Fee

$5,000 - $25,000                               $250

$25,001 - $50,000                             $500

$50,001 - $100,000                           $750

$100,001 and higher                        $1,000

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Rate & LTV Tiers 

• Fico Above 700           Prime+0%                  65% LTV                   Floor Rate: 4.5%

• Fico 671-700                Prime+1%                  65% LTV                   Ceiling Rate: 15.0%

• Fico 640-670                Prime+2%                  65% LTV

• Fico 600-639                Prime+3%                  65% LTV

• Fico Below 600            Prime+4%                  65% LTV

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Rates are variable and are adjusted on January 1st, April 1st, July 1st and October 1st, based on the Prime Rate as published in the Wall Street Journal 20 days prior to the quarterly rate change.

 

Rates remain variable throughout the entire term of the HELOC, including both the draw period and repayment term.

 

We cannot half the mortgage payment on HELOCs like we can on consumer loans. The debt ratio needs to work with their full mortgage payment and the new HELOC payment. If borrowers collect income from the property, we will need the current lease and personal income taxes claiming the income in order to count it in the debt to income ratio.  
 
Members within 10 points of a higher FICO category with at least 3 years of loan history with Connections, and no delinquency, can be bumped to the higher category. Members who are a Thin File or have had a Recent BK cannot be bumped, as per Loan Review rules.  

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HELOCs between $100,001-$150,000 must be approved by the Director of Lending, CLO or CEO.

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HELOCs over $150,000 must be approved by the CLO or CEO.

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