Home Improvement Loan
Members can take advantage of the CBCU Home Improvement Loan to finance improvement projects to your primary residence!
Proceeds must be used for documented home improvements only on owner-occupied primary residences from the date of the loan. Improvements must be for Home Additions, Structural betterments, including roofing, flooring plumbing, window replacement, HVAC installation/upgrade, etc. Purchase of a pool or hot tub is not considered a home improvement item. Loan requests must be supported with contractor written & signed project contract or, in the case of improvements done by the homeowner, paid receipts for materials. Project done by the homeowner must be supported with a signed list of improvements completed or to be completed. Homeowner projects costs will cover materials and purchase of major appliances only (no labor). All loan disbursements must be supported by an invoice.
Copy of a building permit (when applicable) is required before funds are disbursed. For requests involving a contractor, loan proceeds checks are to be made payable to both the borrower and contractor. For loan amounts involving a contractor and are above $10,000, loan proceeds should be disbursed in 4 increments (Ex: $12,000 loan- 4 disbursements at $3,000 each). Each disbursement request should be accompanied by a written statement from the homeowner that they are satisfied with the work to date performed by any contractor involved in the project.
This loan is secured by a Uniform Commercial Code filing (UCC-1) which is valid and enforceable for 5 years. For loan terms greater than 5 years, a Continuation Statement (UCC-3) will be recorded at the end of the 4th year. The UCC-3 is valid for the subsequent 5 years.
UCC filing fee to be paid by borrower at time of closing by debiting the fee from account w/ COBCU with available funds.
Any work that has begun prior to the closing and funding of the loan is disqualified from reimbursement from the loan proceeds.
Available on Owner-Occupied 1-4 family homes and condominiums. No second home or investment properties are eligible. All individuals listed on title must be a borrower (no Trusts, Living Wills, or Life Estates). Minimum loan amount of $5,000. Maximum loan amount of $30,000. This product is for properties with a Loan-to-Value of greater than 80%. Maximum Loan-to-Value (LTV) of 115% of mortgage obligations and no lower than 3rd lien position. Loan is secured by a UCC filing on the improvements being financed. UCC filing fee required. Property value will be determined by a property evaluation. Minimum credit score of 640. Maximum debt-to-income (DTI) ratio of 45%.