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Home Equity Loans

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What is a home equity loan?
A home equity loan is when a member borrows money secured against the equity in his/her home. It is also considered a second mortgage, where the funds owed on the second mortgage are paid to the lien holder after the first mortgage holder is fully paid.
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What types of home equity products does NEFCU offer?
NEFCU offers a fixed Home Equity Loan called the PowerLoan, or an adjustable home equity line of credit called the PowerLine. There are no application fees for either home equity product. We will not offer home equity products on cooperatives, commercial properties or manufactured homes.

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What criteria would I have to meet to qualify for a home equity product with NEFCU?
The home must be owner occupied as the primary residence or a second/vacation home and located in the State of New York. The home must be a 1 – 4 family condominium or a planned unit development. All borrowers on the loan must be members or eligible for NEFCU membership. The house must not be under major renovations because the appraisal value will be based on the current condition and not on what the value will be after the renovations are completed.
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What defines a primary residence and a second/vacation home?
A primary residence refers to the house that a borrower occupies as his/her main residence. At least one person on the deed must live in the house and consider it his/her primary residence. If the member owns more than one home, the primary residence is the address listed on the last tax return or pay stub.

A Second/Vacation Home is a one-family home that is suitable for year round living and not rented. The property is within a reasonable distance from the member’s primary residence and occupied by the member part of each year.
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