Synergy FCU | Home Improvement Loan Requirements & App

Home Improvement Loan Requirements & Application

A loan using a licensed contractor for residential or rural homestead property (single or duplex) as security for new additional construction, maintenance, modernization or permanently affixed equipment.

1. Maximum Amount of Loan for any One Member:

100% of the appraised value less any current unpaid lien balances of record on the date. Note: minimum of loan shall not be less than $5,000.00.

2. Trade Area Restrictions: State of Texas.

3. Specific Documentation needed for Credit Union to process loan:

Signed and completed Loan Application, with Disclosure Statement and HMDA form.
Name, business name, address and telephone number of Contractor.
Itemized bid of work to be performed with total estimated cost clearly indicated.
Copy of Deed of Trust or Warranty Deed to property for legal description.
Verification of amount owed on any 1st, 2nd or 3rd mortgages.
Ex: Copies of statements reflecting current outstanding balances.
Appraisal either from county tax receipt or certified appraiser. (See No. 5, appraisal requirements)
Copy of your present hazard insurance policy.
Employment/Income Verification.
Ex: Most recent pay stub or complete IRS Tax returns. If retired, copy of monthly social security pay stub and/or pension pay stub.

Contract for Improvements may not be executed before the 12th calendar day after the date that an application is submitted.
Note: No loan may be advanced before the three day waiting period (Sun., and holidays are not included). THE LOAN MUST BE CLOSED AT THE OFFICE OF SFCU, PRESENTLY IN SAN ANTONIO, CORPUS CHRISTI, TEXAS CITY, HOUSTON AND PORT ARTHUR.

4. Collateral Requirements:

Lien contract on Homestead property, Contract for Improvements with Assignment of Contractor’s Lien and List of Subcontractors and Suppliers, Real Estate Lien Note and Deed of Trust.

5. Appraisal Requirements:

Appraised value may be determined by the appropriate County district. An independent appraisal may be required by a certified appraiser with photographs of the property. An appraisal may be ordered at credit union’s discretion at anytime.

6. Insurance Requirements:

The homeowner is to show evidence of fire and extended coverage equal to the loan value or actual cash value of any other liens combined with the amount advanced under this note.

7. Closing Costs:

Member is responsible for any and all fees incurred in obtaining a home improvement loan, including, but not limited to appraisal, title search, document preparation, recording, and flood certification fees.