Real Estate Loan Products
First Mortgages
Del Norte Credit Union is committed to becoming our Members' primary financial institution. By providing quality first mortgage loans at competitive rates with reasonable closing costs, we encourage our Members to consider us first.
Del Norte Credit Union offers mortgage loans with competitive rates and down payment requirements as low as 5%. Based on Loan-to-value ratios, Private Mortgage Insurance (PMI) is required on all loans with less than a 20% down payment.
First mortgage loans can be used to purchase or refinance stick built homes, modular/manufactured or mobile homes on a full foundation.
Escrows for taxes and insurance are required on all first mortgage programs.
Adjustable Rate Mortgages
While the name of this type of loan almost says it all, there are certain things about Adjustable Rate Mortgages (ARMs) that you should know.
The Rates Are Lower -- Way Lower
Because ARMs are subject to rate adjustments later on, the initial interest rate is set lower than standard fixed rates. This rate provides you with initial lower payments or increased purchasing power.
ARMs Have Changed
In addition to standard programs that adjust annually; our programs provide an initial fixed rate three, five or seven years before the rate adjusts at all. These options are best for those who want added payment stability and lower monthly expense.
Life Styles Change
First-time homebuyers no longer tend to stay in their "starter" home for 30 years and experienced homeowners often plan to payoff their mortgage long before the 30-year maturity date. Both of these types of members may benefit from choosing an ARM product with an initial fixed rate period that corresponds with the amount of time their loan is expected to be outstanding.
An Adjustable Rate Mortgage may be a good choice if you:
- Want to maximize your buying power
- Want to keep your payments lower during the first few years of your loan.
- Plan to move into a different home within the next ten years
- Plan to pay-off your mortgage within the next three, five or seven years
- If, in the coming years, you expect your income to increase significantly
Escrows for taxes and insurance are required on all first mortgage programs.
Balloon Mortgage Loan
The Credit Union also offers a Fifteen Year Balloon Loan that has a monthly payment based on a 30 year amortization but becomes due in full after fifteen years. Balloon loans work well for homeowners who plan on moving or refinancing in the next 15 years, but initially want to keep their monthly payment affordable.
This mortgage program is for the buyer that may buy a home with plans to sell or payoff the loan within the next few years. The balloon mortgage is written for a 15year term, but the monthly payment is based on a 30 year amortization. That means you pay a set payment each month, but at the end of the term the balloon payment must be paid in full.
Escrows for taxes and insurance are required on all first mortgage programs.
Manufactured Home with Land
If you are looking to purchase a manufactured home on land, the Credit Union will finance 80% of the lesser of the purchase price or appraised value.
If you are looking to refinance your existing loan, the Credit Union will finance up to 80% of the appraised value.
The manufactured home must be 10 years or newer and must be on a permanent foundation.
Terms up to 15 years are available.
Escrows for taxes and insurance are required on all first mortgage programs.
Jumbo Loans
In the market for that "once in a life time" dream house? Does your dream translate into a loan that's larger than the Fannie Mae's conventional loan limit of $417,000? If you can make a large down payment and pay all your closing costs up front, you will get a lower rate by staying below this $417,000 limit. However, if your financing needs are greater, a Jumbo loan may be the right choice.
Escrows for taxes and insurance are required on all first mortgage programs.
Home Equity Fixed Rate Loan & Home Equity Line of Credit
If you're a homeowner, you may be missing out on one of the smartest ways to borrow affordably. Use the equity in your home to consolidate high interest credit cards, pay for a college education, purchase a new vehicle or go on that dream vacation.
Home Equity Fixed Rate Loan
A home equity loan is a second mortgage on your property made in addition to your original loan. It allows you to borrow against the equity in your home that has grown with its increased value and/or your original mortgage has been paid down. With a home equity loan, you receive a lump-sum payment at closing, which you can use for anything: home improvements, education, business investments, or for unexpected expenses.
Home Equity Line of Credit
A Home Equity Line-of-Credit (HELOC) is similar to a Home Equity Loan in that the loan amount is determined by the equity you’ve built in your property. However, instead of receiving a lump sum at closing, you are given a credit line from which you can draw funds whenever you need to, up to your credit line limit.
Use as much or as little as you need and only make interest payments on the outstanding balance, not the total amount of the credit line. Your available line of credit replenishes as you repay the outstanding balance.
Funds can be accessed by writing a check or by making advances at the teller line or through Online Banking. $300.00 minimum advance amount is required.
Interest may be tax deductible (consult your tax advisor).
Construction
Considering building your dream home? Let us help you!
Our Construction Loan program offers these convenient features:
- Construction terms up to 12 months
- A variable interest rate during the construction period
- Flexible draw periods to accommodate the needs of General Contractor and Member
Construction Loans may be also used to build modular, manufactured and doublewide homes on a full foundation.
When applying for a Construction Loan, please provide the following information:
- Verification of employment (most recent pay stub) or at least two years' income tax returns if self-employed
- Verification of funds for the down payment and closing costs
- Copy of deed to your land (if currently owned)
- Copy of Sales Agreement on land (if being purchased)
- Construction contract between you and the builder - this must be signed by both parties
- The contract will define the total set price to build, a specified completion time and the number of draws for work done (six or less pay out stages)
- Complete construction plans and specifications (materials to be used)
- Building permit
- Builder's Risk Insurance during the construction phase (needed at closing)
Note: Our Construction Loan program is specifically designed for those Members who have a General Contractor build their home.
Vacant Land
Have you found a piece of land but you're not quite ready to build on it? A Land Loan with Del Norte Credit Union is definitely for you!
With a Del Norte Credit Union Land Loan, you can finance as much as 75% for improved land & 65% for un-improved land of the lesser of the sales price or the appraised value with terms up to 15 years. We also have minimal closing costs that make our Land Loans a great deal! If you currently have a land loan, we may be able to refinance and save you money.
