Investment Properties are 1-4 Family Residences (Owner and Non-Owner Occupied) that is already vested in the borrower’s names. 

 

Owner Occupied = Member resides in home.  

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

Second homes that do not derive income are not considered Investment Properties. Members must live in the home at some point during the year.  
 
Lenders with Lending Authority per Policy can underwrite and approve RE/HELOC Loans for borrowers with 4 or less Investment Properties with loans against them.  

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Business Loan Committee will be required to review and approve:

• Members wanting more than 2 HELOCs with Connections Credit Union

• Borrowers with over 4 Investment Properties with loans against them

• Borrowers whose income related to the Investment Properties is higher than 50% annually 

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Fees on Investment Properties:  $500 Underwriting Fee for HELOCS (GL# 135.00)  Normal Closing Costs for First Mortgage RE Loans – Per RE Policy 
 
Title Policies HELOCS: 

SMART Title Policy* required on all HELOCS (part of $500 Underwriting Fee) 

*Pay close attention to Requirements and Exceptions on SMART Policy Normal Title Policies for First Mortgage RE Loans – Per RE Policy 
 
Valuations and LTV for Investment Properties:  HVE acceptable for HELOCS under $100,000  Appraisals Required for HELOCS above $100,000 @ Members Expense or Business Loan Committee may consider waiving appraisal.  
 

Rate & LTV Tiers 

• Fico Above 700           Prime+0%                  70% LTV                   Floor Rate: 4.5%

• Fico 671-700                Prime+1%                  70% LTV                   Ceiling Rate: 15.0%

• Fico 640-670                Prime+2%                  60% LTV

• Fico 600-639                Prime+3%                  55% LTV

• Fico Below 600            Prime+4%                  55% LTV

 
A Separate Line for Investment Property HELOCS has been added to the Consumer Lending Rate Sheet.  
 
70% LTV Max in First Lien Position with Risk Based discounts for LTV.  Waivers may be made for requirement of First Lien Position by the Business Loan Committee.  
 
Business Loan Committee:  Waivers to Guidelines may be made through the Business Loan Committee which will consist of CEO, VP of Lending, and Mortgage Lending Specialist.  Two or more members from the Committee will be required for review and approval sign offs.  
 
ALL Business Loans REQUIRE Personal Guarantees from all Borrowers.

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