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NON-OWNER OCCUPIED MORTGAGE LOAN PROGRAM

TERMS & CONDITIONS

One to four-family residential. No commercial use such as store front on first floor (cottage or vacation home is acceptable). Cannot be primary residence of borrower.

  • Maximum Amount of Loan: 70% of sales price or appraised value, whichever is less, with a maximum loan of $100,000. Cash out refinance maximum LTV 50%
  • Loan Interest Rate: Variable; contact credit union for current rate
  • Points: Contact any loan representative at the credit union for current points
  • Frequency of Interest Rate & Payment Changes: Every three years
  • Minimum Rate Change: Rounded to nearest 1/8 of 1% (if change is necessary)
  • Maximum Rate Change per Interval: 2% (increase or decrease)
  • Maximum Maturity: 15 years
  • Prepayment Penalty: None
  • Property Qualification Requirement for Refinances and Purchases:
    • The property must be fully rented and show a rental income in order for rental income to be used in D/I calculations. Only 75% of the rental unit's income will be used to account for expenses.
    • If subject property has a negative cashflow after allowing for 75% of rental income, the deficiency of the income shall be considered an installment obligation to the member and calculated into the D/I ratio. If the units are not rented, the member must qualify by other reported income. There will be no projection of rental income.
  • The following will be required at the time of application:
    • Copy of leases
    • Income and expense report for last two years
    • Last two years tax returns (if applicable)
    • Escrow Account: Not required
  • Payment Options: Bi-weekly and monthly