FAQs

Home Equity Line-of-Credit

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• + Can I convert a traditional Home Equity Loan to a HELOC?

  If it has been more than 12 months since your current Home Equity loan was funded, you can apply to refinance your Home Equity loan with a new Home Equity Line of Credit. You would need to qualify for the new loan and would be subject to the current rate and fees.

• + Can I have a traditional Home Equity Loan and a HELOC at the same time?

  No. In the State of Texas, you can only have one Equity loan at a time.

• + Will I be issued a Credit Card to access my HELOC?

  No. You will need to contact UFCU's Home Equity Loan Department to request a Draw.

• + How can I make Draw requests on my HELOC?

  A draw request (transfer) from your Home Equity Line of Credit (HELOC) is now available through UFCU's Phone Banking and Online Banking. Login to UFCU's Phone Banking or Online Banking, and transfer the funds as you would make any other transfer to and from your other accounts. In accordance with Texas Law for all HELOC draws, the minimum requirement for each draw request via Phone Banking and Online Banking is $4,000.

• + How long can I make Draw requests on my HELOC?

  There is a draw period of 5 years and a repayment period of 10 years.

• + How much can I borrow on a HELOC?

  While Texans are allowed to borrow up to 80% of the value of their homes, UFCU Home Equity Line of Credit Loans allow you to borrow up to 70% of the Fair Market Value of the home, less any outstanding liens on the property. The loan amount cannot exceed 50% of the Fair Market Value.

  Market Value	=	$150,000
  70%	=	$105,000
  1st Lien	=	$20,000
  Available	=	$85,000	Traditional Home Equity Loan
  Market Value	=	$75,000	HELOC (50% of Market Value)

• + How long does it take to get the loan?

  By Texas State law there is a minimum 12-calendar day "waiting" period from the time of the written application and Texas Home Equity Loan Disclosure are received to the day you can close. There is an additional 3-business day "right of rescission" period before the loan can be funded. The right of rescission period is required by both state and federal laws. Therefore, the minimum time it will take to receive the money is 16 (sixteen) days. Processing time may vary from loan to loan and may, in some cases, exceed 16 days.