Real Estate Loans
We offer up to 30 year 1st Mortgage and 10 year Home Equity Loans – HELOCs
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1st Resource Credit Union offers first mortgages, second mortgages, and equity lines of credit to its members.
Conventional Real Estate Mortgages
First and second mortgages are treated in the same manner and they carry the same maximum term and interest rate. Both types of mortgages have a maximum term of 30 years and the maximum loan amount is 95% of the appraised value of the property being mortgaged. 1st Resource Credit Union makes real estate loans on the member’s primary residence or second home only. The Credit Union will not mortgage rental or commercial property. Both the first and second mortgage loan products are variable rate mortgages but they only adjust interest rates every five (5) years and they have a life interest rate cap of 2.00% therefore these mortgages are very close to a fixed rate product. 1st Resource Credit Union does not sell its real estate loans in the secondary market so members will always make their payments to the Credit Union. Any member may submit a residential loan application along with a copy of their ‘Warranty Deed’ and home owner’s insurance policy to the Credit Union for any worthwhile purpose such as; purchase of a home, refinance of a home, bill consolidation, vacation, student education, home repairs and improvements, auto purchase, and more. Once the application is received by the Credit Union, a verbal approval can be made in thirty minutes or less. All applications are subject to normal Credit Union lending policies. If the application is approved, the Credit Union will process your loan to the finish and this includes ordering the appraisal and closing. Appraisal fees will be collected once the application is approved and the member decided to pursue the loan. All first and second mortgage loans are processed and closed by a licensed attorney and the closing will take place at the Credit Union. The closing cost associated with real estate loans can be included in the amount financed by the Credit Union unless a member wants to pay for them ‘out of pocket’. The closing cost on most real estate loans at the Credit Union are less than $2,000 and we never charge you with an origination fee, points, or application fee. The only closing cost on 1st Resource Credit Union real estate loans are; appraisal, title, attorney, recording, and flood determination. Most real estate loan interest paid to the Credit Union is tax deductible so check with your tax preparer concerning your real estate loan tax advantage. 1st Resource Credit Union is an equal housing lender.
Home Equity Lines of Credit (HELOC)
Home equity lines of credit (HELOC’s) are available through 1st Resource Credit Union. The Credit Union will loan up to 90% of the appraised value of a member’s principle residence. Appraisals will be ordered by the Credit Union. HELOC loans can be first or second mortgages. The closing cost on this loan product consist of an appraisal, attorney fee, and title insurance and averages around $1,000. The maximum term for this loan is 10 years with a 5 year draw. HELOC’s interest rates are variable and can adjust yearly. Any balance at the maturity of the loan may, subject to normal credit underwriting, be refinanced at the current Credit Union interest rate or can be paid in full by the member.
To apply now, please click on, print, and complete the PDF Real Estate Loan Application form and either U.S. mail or fax it to the Credit Union.
1st Resource Credit Union
47 W Oxmoor Rd
Birmingham, AL 35209
(205) 944-1196 fax