Home Equity Line of Credit

  • Benefits
  • Application Process
  • FAQs
 

Benefits

Home Equity Line of Credit (HELOC) offers convenient access to the money you've invested in your home. Use a HELOC to pay for small home improvements, consolidate credit card debt or even education expenses. Our Home Equity Line of Credit offers a credit line from $10,000 to $200,000 depending on the available equity in your home. Qualified members can borrow up to 50% of the home's fair market value, less the amount of any outstanding lien.

JSC FCU Home Equity Line of Credit features:

 
  • Low, competitive rates
  • Terms up to 15 years
  • Credit lines from $10,000 to $200,000
  • Access to funds when you need them
  • Payments calculated on advanced funds
  • Revolving credit line
  • No loan application fee

Application Process

Application:

To correctly submit an application, you will need to provide the Credit Union a signed original of the following:
(Provided in application package)

 

To help expedite the process, please provide the following:

 
  • Proof of Income
  • Proof of Homeowners Insurance and Windstorm/Flood Insurance (if applicable)
  • Deed of Trust
Pre-Qualification:

Credit and income are reviewed - can take up to three business days

Pre approval:

If you decide to proceed with the loan, you will sign and return the Good Faith Estimate acceptance letter. We then will proceed by ordering the following reports on your behalf: (fees apply)

 
  • Property Report
  • Flood Certification
  • County Tax Appraisal (no charge)

A Formal Appraisal may also be required when:

  • When equity is insufficient
  • At the discretion of the Credit Union

Next, we will send you a second group of disclosures that must be signed and returned. These include:

  • The FACT Act Notice
  • Itemization of Fees
  • Standard Flood Hazard Determination Form
Approval:

At this time you will be contacted to set an appointment for closing.

 
Loan Closing:

At this point you and your loan officer have scheduled a closing appointment at a JSC Branch and a time convenient for you. (The State requires a minimum of 3 days before funding)

 

Documents that will be provided at your closing appointment:

 
  • Home Equity Open-End Credit Agreement & Truth-in-Lending Disclosure
  • Home Equity Addendum
  • HELOC Deed of Trust
  • Acknowledgement of Fair Market Value
  • Notice of your Right to Cancel
  • Receipt of Documents signed at C
  • Texas Mortgage Fraud Notice
  • Loan Agreement Notice (Loans over $50k)
  • Document Correction Agreement
  • Acknowledgement of Closing Documents
  • Home Equity Lending Acknowledges
  • Borrower’s Lien Affidavit
  • Supplemental Mortgage Insurance Provisions
  • Letter to Insurance Company
  • Home Equity Compliance Agreement
 

For an explanation of these documents please refer to the Explanation of Home Equity Closing Documents included with this package.

After Closing:

After your loan closes, you have three business days to cancel your loan application. If after three business days you still wish to continue with the process you will return to the Cred it Union the Statement of Non-cancellation (provided at closing) indicating that you do not wish to cancel your loan. Loan proceeds cannot be disbursed nor can work begin prior to the receipt of this notice by the Credit Union and the required three days has elapsed.

 

If you need further assistance, please contact a mortgage specialist at 281-488-7070.

Robin Pavalonis ext. 1143

Stacey Horton ext. 1145

Amber Draper ext. 1439

FAQs

What is a Home Equity Line of Credit?

Sometimes referred to as a HELOC, a home equity line of credit lets you borrow against the equity you've built in your home, by taking draws against your available balance.

What is the maximum time that a HELOC loan can be financed for?

The Home Equity line of Credit can be financed for a maximum of 15 years.

How long may you access the Line of Credit?

Per regulation the draw period cannot exceed 5 years.

How is the interest rate determined?

Interest rates for HELOC loans are variable. Currently, the Credit Union sets HELOC interest rates by adding .75% to the Prime interest rate with a floor of 4.75%. This rate can change annually on the anniversary of your loan.

How long does the process take to finalize a HELOC?

Certain time restrictions are mandated by Texas Law and cannot be shortened. The applicant must wait a minimum of 12 calendar days prior to the closing date, then an additional 3 business days must pass before funds can be distributed. Therefore, the minimum closing time of this loan is 17 calendar days. However, the loan could take longer due to reasons outside the norm (e.g., the timing of receipt of signed documents, legal disposition of the property, unpaid taxes, unreleased lien, and timing of formal appraisal or title commitment).

Is a spouse required to be on the loan?

Texas is a community property state, therefore, a spouse and anyone who is listed on the deed of trust is required to be a joint applicant and must occupy the property.

Can a home owner have more than one HELOC loan?

Texas Law allows an owner only one HELOC loan at a time, regardless of the aggregate total of outstanding debt against the homestead.

Does the property have to be homestead exempt?

Property used to secure a Texas HELOC must be the borrower's homestead.

What are the closing costs associated with a HELOC loan?

The standard cost for closing a HELOC is $198.00 - $202.00. Per State law, all fees associated with this loan cannot exceed 3% of the original principle loan amount.

The break-down of these fees are as follows:

  • Property report - $135.00.
  • Flood certification - $15.00.
  • Recording fees - $48.00 to $52.00.
  • Appraisal
    • Most often we use the tax appraisal (no cost). However, if a formal appraisal is required the cost ranges from $400.00 - $500.00.
  • Title commitment fees (determined by the title company)
How much can be borrowed for a HELOC loan?

The amount borrowed for a HELOC is 50% of the appraised market value minus any existing liens on the property. For example, on a property with a fair market value of $100,000, the maximum amount of debt against the property permitted by is $50,000. Assuming there is an existing debt of $30,000, the maximum amount of the HELOC can be is $20,000.

Can an existing appraisal be used to determine property value?

At the discretion of the Credit Union, an existing appraisal may be used, granted it is no older than one year and was prepared for another lender.

Is there a prepayment penalty on a HELOC loan?

A lender may not charge a penalty to a borrower for paying all or a portion of an equity loan early.

How long can I take draws on a HELOC?

A Home Equity Line of Credit is only available for draws for five years. 

How are HELOC payments calculated?

The payment is calculated from the balance of the loan at your last requested draw. The balance will determine the amortization period to calculate the payment.  This is a variable rat and the payment and rate can adjust annually.

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