Finding the perfect personal loan can be hard. Between high-interest rates, strict application requirements, and tight guidelines on what the funds can be used for, it can be challenging to get the money you need.
To solve this, some credit unions have started to explore new loan types to make the process easier for borrowers. One result is the homeowner express loan, a new category of loans meant to build on the existing investment borrowers have made in their homes. To learn more about this unique loan opportunity, we enlisted Amplify Credit Union’s Consumer Loan Officer Valerie Figueroa. With her help, we’ll answer some basic questions to determine whether or not this loan is for you.
What is a Homeowner Express Loan?
A Homeowner Express Loan is a type of fixed-rate personal loan offered to Amplify Credit Union members who have maintained a credit file and own a home. But unlike many loans available on the market, the Homeowner Express Loan is flexible. Approved applicants can borrow up to $40,000, and the credit is available in fixed terms for up to 5 years.
Applying for a Homeowner Express Loan
If you are a homeowner with an existing relationship with Amplify Credit Union, you may be eligible to borrow. The Homeowner Express Loan application process is similar to any other loan application. If you apply online, you’ll fill out some necessary information like name, address, and monthly income. You will also be asked to upload some documents such as a current government-issued photo ID and pay stubs or another form of income verification.
Like most loans, final rates and terms are determined by credit history and are subject to credit approval.
What Are the Benefits of a Homeowner Express Loan?
“This is a great product for our homeowner customers,” Figueroa says. Designed especially with new homeowners in mind, the Homeowner Express Loan offers several unique advantages, including a lower interest rate and quick turnaround.
Lower Interest Rate
This is one of the biggest perks of the Homeowner Express Loan. “The Express Loan will also offer homeowners lower rates than the standard personal loan,” Figueroa explains.
Depending on how much you borrow, a lower interest rate can save you hundreds of dollars of the course of your loan term. The less you spend on interest, the lower your monthly payment, and the more money you have to spend on your long-term financial goals.
Unlike a home equity loan or a home equity line of credit, you don’t need to have equity built up to take advantage of a Homeowner Express Loan. This means that there’s no requirement as to how long you have to live in the house before borrowing. There are also no liens involved, like you may find with other types of loans.
“As soon as you purchase your home, you could be eligible for this product,” Figueroa says. Because of this, it’s perfect for homeowners who purchase a fixer-upper and have projects to complete as soon as they move in. And because it’s offered to members who already have a relationship with Amplify, your loan application will be processed quickly, meaning you can quickly access your funds.
How Can You Use a Homeowner Express Loan?
You can use the Homeowner Express Loan to finance just about anything. Still, there are two purposes that Amplify sees frequently. “The most common use is home improvements and debt consolidation,” Figueroa says.
“For members looking for small repairs completed at home, the Express Loan is more useful than the home improvement loan,” she explains. “This is because it allows members more flexibility with funds, and it’s offered with no ties to home.” Unlike the home improvement loan, you don’t need a contractor on board before you borrow. You can use the funds for D-I-Y projects and small fixes you need to get done around the home such as:
- Updating appliances
- Repairs and minor remodels
Thanks to its competitive rate, the Homeowner Express Loan is also commonly used for debt consolidation. If borrowers have more expensive debt, say several credit card balances with a high-interest rate, they can pay them off with the loan. Instead of having revolving debt that may seem impossible to pay off, you can repay the balance over the fixed loan term with a lower interest rate.
Others may decide to use it to pay for emergencies, medical expenses, school tuition, and more. With a Homeowner Express Loan, the flexibility is the point.
Getting a loan for purposes like home improvement projects or debt consolidation doesn’t have to be a complicated ordeal. With the Homeowner Express Loan from Amplify Credit Union, you can get the money you need quickly with some of the best rates and loan terms out there. Borrowers can use the funds how they see fit, giving you greater financial flexibility.