FAQ Category: Home Equity
If my new home purchase is delayed, what options are available for handling the Bridge Loan’s balloon payment or extension?
Because a Bridge Loan is a short-term, fixed-rate balloon loan, the remaining balance is due at maturity if your current home has not sold yet. If your purchase or sale timeline changes, the best step is to contact People Driven Credit Union as early as possible. Extension options are not automatic and would depend on your individual situation, current credit ...
Continue ReadingIf I’m paying cash for the new home and do not need a mortgage, how exactly would a Bridge Loan work?
A Bridge Loan can still help if you are paying cash for your new home. Instead of using it alongside a new mortgage, the Bridge Loan uses the equity in your current home to provide funds for your purchase. That can help you buy the new home before your current one sells. You would make monthly payments during the 6-month ...
Continue ReadingWhat qualifies as a primary (owner-occupied) residence for a Bridge Loan?
A primary (owner-occupied) residence is your current home where you live as your main residence. The Bridge Loan uses the equity in your “current primary home” to fund the next home purchase. Have more questions about bridge loans? Connect with a Home Equity Specialist at People Driven Credit Union to get your questions answered.
Continue ReadingIs a bridge loan available for second homes or investment properties?
No. Our Bridge Loan is not available for second homes or investment properties. If you are looking to use equity from another property to help with your next purchase, a HELOC or Fixed Term Home Equity Loan may be a better fit. These options can give you access to funds without using our Bridge Loan program. To talk through your ...
Continue ReadingIf I get a bridge loan, Do I have to finance the finial purchase through PDCU?
If you are using a People Driven Credit Union Bridge loan, you must allow People Driven to finance your new home as well. If you’re purchasing without financing, ask us how a bridge loan may fit your plan. Have more questions about bridge loans? Connect with a Home Equity Specialist at People Driven Credit Union to get your questions answered.
Continue ReadingDo Home Equity Lines of Credit (HELOCs) have a minimum loan amount?
Yes—but just like our Home Equity Loans, our HELOCs start at a minimum of $5,000. That’s lower than many lenders, giving you affordable access to your home’s equity for smaller projects, unexpected expenses, or ongoing financial flexibility. To learn more or find the right line amount for your needs, connect with a Home Equity Specialist or call us at 248-263-4100.
Continue ReadingDo Fixed Rate Home Equity Loans have a minimum loan amount?
Yes—and ours is refreshingly low. People Driven Credit Union Home Equity Loans start at just $5,000, making it easier for members to borrow only what they need for smaller projects or expenses. Many lenders require much higher minimums, but we believe your home’s equity should work for you—on your terms. To explore your options or apply, connect with a Home ...
Continue ReadingDo you finance land purchases?
No. We lend only against vacant land you already own; we do not finance land purchases. Have more questions about a Land Loan? Start your Land Loan conversation with Home Equity Specialist at People Driven Credit Union. Connect with a Home Equity Specialist
Continue ReadingWhat exactly is a Land Loan?
A Land Loan is a closed-end term loan secured by your vacant land. It has a fixed payoff date, predictable monthly payments, and your land serves as collateral. Have more questions about a Land Loan? Start your Land Loan conversation with Home Equity Specialist at People Driven Credit Union. Connect with a Home Equity Specialist
Continue ReadingHow can I use the funds?
Common uses include site preparation, utility runs, property taxes, debt consolidation, or other qualified needs. We will confirm your intended use during application. Have more questions about a Land Loan? Start your Land Loan conversation with Home Equity Specialist at People Driven Credit Union. Connect with a Home Equity Specialist
Continue ReadingWhat terms are available?
Terms are available up to 240 months (20 years), subject to credit approval and program guidelines. Have more questions about a Land Loan? Start your Land Loan conversation with Home Equity Specialist at People Driven Credit Union. Connect with a Home Equity Specialist
Continue ReadingWhat fees should I expect?
Members pay all fees, including a 1% origination fee and third-party closing costs such as title, appraisal, and recording. You will receive an itemized estimate before you proceed. Have more questions about a Land Loan? Start your Land Loan conversation with Home Equity Specialist at People Driven Credit Union. Connect with a Home Equity Specialist
Continue ReadingWhat do you look at to qualify?
We review your credit and income, the appraised land value, acceptable lien position, clear and insurable title, legal access or road frontage, and any flood or environmental concerns. Have more questions about a Land Loan? Start your Land Loan conversation with Home Equity Specialist at People Driven Credit Union. Connect with a Home Equity Specialist
Continue ReadingWhat types of land are eligible?
Generally, eligible collateral is vacant land you already own with legal road access and clear, insurable title. “Vacant” means no habitable dwelling on the parcel; sheds, fencing, driveways, or wells may be acceptable subject to underwriting. Examples often considered (case-by-case) include residential lots, rural acreage or recreational parcels, waterfront parcels with no residence, and adjacent or extra lots next to ...
Continue ReadingDo I need an appraisal?
Typically yes. A land appraisal or other valuation is usually required. Requirements and costs will be confirmed upfront. Have more questions about a Land Loan? Start your Land Loan conversation with Home Equity Specialist at People Driven Credit Union. Connect with a Home Equity Specialist
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