PURCHASE, N.Y., July 19, 2019 /PRNewswire/ -- Quorum Federal Credit Union, a full-service financial institution serving over 75,000 members across all 50 states, has expanded its popular Home Equity Line of Credit products to include investment properties. Now, individuals who own or are looking to purchase a rental property can get up to $250,000.
Known for straightforward pricing and personalized service, Quorum now offers a new source of cash to purchase properties, renovate homes or pay for college. Individuals can borrow up to 80% of an investment property's appraised value at rates as low as 6.25% APR*. Eligible properties include non-owner occupied 1-4 family homes, condominiums, planned unit developments and townhouses.
"We're always looking for innovative ways to help members achieve their financial goals," says Tyson Blackburn, Vice President of Lending. "That's why this option is even open to individuals who are purchasing their first investment property. You can close on our home equity line at the same time as your first mortgage, and use the additional cash to help cover your down payment and closing costs."
Under the terms, borrowers can make interest-only payments for the first five years, followed by a 10-year repayment period. There are no pre-payment penalties. Individuals will become a member of the Credit Union as part of the application process.
"A rental property can be a smart investment, but it can be hard to tie up so much cash in one place," Blackburn adds. "We're providing consumers with a fresh option, so they can take advantage of opportunities that are right for them."
About Quorum Federal Credit Union
Quorum Federal Credit Union (www.quorumfcu.org) is headquartered at 2500 Westchester Avenue, Suite 411, Purchase, NY 10577. Founded in 1934 as the exclusive credit union for Kraft Foods employees, today the Credit Union serves over 75,000 members living in all 50 states. Quorum serves its members with both in-person and remote banking channels—including branches, a call center, and online and mobile banking—so banking is possible anywhere, any time. Quorum's mission is to do good by their members and for their members by returning profits in the form of competitive rates, low fees, simple rules, clear communication and unbiased advice. That's "Banking that's good. For you."
The Fine Print
Rates and APR: The Annual Percentage Rate (APR) is as low as 6.25% as of 04/24/2019. The Floor Rate is 4.95%. Maximum APR is 18.00%. The APR is a variable rate, plus or minus a margin, and is based on the Prime rate (index - as published in The Wall Street Journal) plus a margin. The margin is determined based on credit history, loan amount and combined loan-to-value (CLTV) ratio. Rate will not increase or decrease more than 2% annually. A home equity line-of-credit is secured by the member's home, and is available only for 1-4 family residential properties and condominiums, excluding co-op's. Minimum line-of-credit amount: $10,000. No draw required at closing. No application, or termination fees; appraisal fee varies. No pre-payment penalty. Mortgage tax may apply in some states. This Home Equity Line of Credit is not available in TX. All loans are subject to credit approval.
Quorum is an Equal Housing Lender. We do business in accordance with Federal Fair Lending Laws.
SOURCE Quorum Federal Credit Union