LOC

Lines of Credit (LOC)                             
A Line of Credit (LOC) is a revolving finance account, and works very similarly to a credit card. You determine the amount you would like to open the line with, and then may borrow up to that limit. You may continue to make withdrawals from the Line until the maximum is reached. Monthly payments are required as long as there is a balance withdrawn on the Line and payment amounts will change based on the amount outstanding. Once a portion of the balance has been paid off, it may be withdrawn again for use. 

Lines of Credit are useful for borrowers who need to withdraw money frequently or over a longer period of time. They can be used to consolidate debt or fund ongoing projects.

We currently offer two types of LOCs:
  • Personal LOC- These unsecured Lines are available up to $10,000 and rates vary depending on credit score and other factors. These Lines require an application.
  • Home Equity LOC (HELOC)- Home Equity LOCs are secured by a borrower's home and are available up to $35,000 through our office. Rates vary depending on credit score and other factors, but are typically lower than Personal LOCs. These Lines require an application, property appraisal, and closing costs.    
What are the benefits of a LOC?
  • One Application- LOCs allow you to borrow money multiple times, without having to apply for a new loan each time. 
  • Lower/No Interest- LOCs typically have lower interest rates than credit cards, especially HELOCs. And if if the Line is paid off, you won't be charged interest until you withdraw more money.
  • Security- LOCs allow you to have a "security" cushion of available funds. Once approved, the Line remains open and is available for an extended period of time. So even if you don't use the entire line, you still have the availability in case of an emergency or unexpected expense. 
How do I apply for a LOC?
  • Application- Fill out our online application HERE, or come into the office for a paper copy. (For lines over $35,000 please use our partner website, Owner's Choice.)
  • Paperwork- We will need proof of income for all borrowers. HELOCs also require the up-front appraisal fee, currently $375.00. 
  • HELOC Appraisal- Once the appraisal fee is collected, a certified appraiser will schedule a time to view your home. Depending on the line details, this may be a full inside/outside appraisal or just an outside appraisal.
  • HELOC Commitment- After the appraisal, our Loan Officer will contact you with the results and terms of line. We will discuss the closing costs and payment options. If you accept the terms, the papers will be drawn up to finalize the line. 
  • Finish- Once all the line papers have been completed and all borrowers have signed, the funds will be distributed to the borrowers. 
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