Home Equity Line Of Credit

Application

As low as 8.50% APR Home Equity Line of Credit
Instructions for completing application

Thank you for your interest in our Home Equity Line Of Credit Mortgage Loan Program.
To help assure prompt processing of your application, please complete the following steps:

1. Complete the application in its entirety making sure that all information is included and that each applicant signs the application.

2. Sign the consent form filling in your social security number and address. All applicants must sign the form.

3. Please enclose copies of your most recent credit statements when applying for a consolidation loan. Checks will be made payable to the creditors.

4. Return all of the above items together with a COPY OF YOUR DEED AND A COPY OF YOUR HOMEOWNERS INSURANCE POLICY, to the credit union office.

5. To ensure the speedy processing of your loan, please enclose a copy of a month worth of recent paycheck stubs, or if you are self employed a copy of the last two years tax returns with all applicable schedules attached.

Remember that you are applying for a mortgage loan, and there is a time delay in the initial process to allow for the title search, appraisal, etc.

Collateral Eligibility: Only primary owner occupied single family residences can be used as security for a second mortgage. The home must continue to be occupied as your primary residence for the life of the loan. If a member intends to use a second home as their primary residence in the future and signs a statement to that effect, the credit union can hold a second mortgage on the property, but will accept no less than a second mortgage.
Only properties located in DE, MD, PA, and NJ are eligible.

Insurance: All second mortgage loans must be insured against fire, and extended coverage (HO2 minimum required; HO3 "All risk" is preferred") equal to the first mortgage balance, plus the total amount of the approved second mortgage loan. Insurance companies providing such coverage shall be requested to issue an endorsement listing the credit union as second mortgagee and must provide the credit union with a copy of your insurance policy within 30 days of the settlement of your mortgage.

Appraisal Disclosure: You have the right to a copy of the appraisal report obtained in connection with your application for credit provided that, if required, you have paid for or are willing to pay for the appraisal. You can get a copy of this report by writing to us at the address listed above. We must hear from you no later than 90 days after you are notified about the action taken on your credit application. (If you withdraw your application, you must make your request for an appraisal report within 90 days of the withdrawal.) You can telephone us, instead of writing, but by doing so you are not assured of preserving your rights.

Chestnut Run Federal Credit Union
P O Box 5037
Wilmington, DE 19808-0037
(302) 999-2689, (302) 999-2260, OR (302) 894-9240
FAX (302) 999-4889
CONSENT FORM

DATE:________________

To whom it may concern:

I/we have applied for a real estate loan and hereby authorize you to release to the Lender the requested information on the attached form concerning our employment, checking/savings accounts, outstanding obligations and all other credit matters which they may require in order to process our loan application.

The information is for the confidential use of the Lender in determining my/our creditworthiness for a mortgage loan or to confirm information I/we have supplied. In addition, I/we are aware that the documentation supplied is subject to reverification after the date of loan disbursement.

A photographic or facsimile copy of this authorization may be deemed to be the equivalent of the original and may be used as a duplicate original.

Your prompt reply is appreciated.

________________________________ ______________________________
Borrower’s Signature Date Social Security Number
__________________________________________________________________
Address

_______________________________ ______________________________
Co-Borrower’s Signature Date Social Security Number

__________________________________________________________________
Address
******************************************************************
I hereby certify this to be a true and correct copy of the original signature(s).

________________________________ ______________________________
Lender’s Signature Date Telephone Number

LOAN REQUEST
Chestnut Run Federal Credit Union
PO Box 5037 Wilmington DE 19808-0037
Phone (302) 999-2689, 999-2260 or 894-9240
Fax (302) 999-4889 Main Office or (302) 894-9243 Glasgow Office

Loan Application Submission Instructions:
When you have completed the application, it can be submitted to the credit union along with the above forms via fax to the credit union at our Chestnut Run Office on (302) 999-4889 or at our Glasgow Office on (302) 894-9243. The application can also be mailed to the credit union at the above address..

The Co-Applicant Section and all other Co-Applicant questions must be completed if:

You live in or the property pledged as collateral is located in a community property state (AZ, CA, ID, LA, NM, NV, TX, WA, WI).
If you are relying on income from alimony, child support or separate maintenance, complete theCo-Applicant section to the extent possible about the person on whose payments you are relying.
If you are applying for Joint Credit with another person, complete theApplicant and Co-Applicant sections..

Is this your first loan from us? yes no Credit Limit Requested:$
Purpose of Loan:
Please Explain:
Address of Property to be held as Collateral:
Date Purchased: Purchase Price:$
Cash Down Payment:$ Present Vallue of Property:$
Name and Address of Title Holder:

Yr. House Built:

# of Rooms:

# of Bedrooms:

#. of Baths:

Family Room or Den:

Gross Living Area: Sq. Ft.

#.:

Central Air:

PAYMENT PROTECTION COVERAGECheck if desired

Find out more about Payment Protection Insurance and why it's a better consumer value when offered through your credit union.

Check coverage(s) desired. We will disclose the cost of this Payment Protection Insurance - Credit Disability and Credit Life - to you. A separate enrollment form which discloses the terms and conditions must be signed for coverage to become effective.

Yes No Do you want your loan protected for you and your family if you become disabled?
Yes No Do you want your loan protected for you and your family in the event of your death?

TELL US ABOUT YOURSELF

Applicant

Co-Applicant

Name:

Name:

CU Account #:

CU Account #:

Social Security #:

Social Security #:

# Dependents Other Then Listed by Co-Applicant:
Ages:

# Dependents Other Then Listed by Co-Applicant:
Ages:

Please indicate your marital status if you are applying for Joint Credit, secured credit or if you live in a community property state:
Married Separated Unmarried (Single - Divorced - Widowed)

Please indicate your marital status if you are applying for Joint Credit, secured credit or if you live in a community property state:
Married Separated Unmarried (Single - Divorced - Widowed)

Driver's License #: State:

Driver's License #: State:

Birth Date:

Birth Date:

Home Phone:
Business Phone:

Home Phone:
Business Phone:

Present Address:
City, State, Zip:
Years There: Own Rent

Present Address:
City, State, Zip
Years There: Own Rent

DEBTS

DEBTS

Mortgage on Property to be held as collateral owed to:

Mortgage on Property to be held as collateral owed to:

Balance:$
Balance:$

Balance$:
Balance$:

Mthly Payment:$
Mthly Payment:$

Mthly Payment:$
Mthly Payment:$

Person Responsible for Payment:

Person Responsible for Payment:

INCOME

INCOME

Employer:
Employer Address:
Years Employed in This Line of Work or Profession:
Years on This Job:

Employer:
Employer Address:
Years Employed in This Line of Work or Profession:
Years on This Job:

Income:$ NetGross
Annual Monthly Bi-weekly Weekly

Income:$NetGross
Annual Monthly Bi-weekly Weekly

Other Income: (Notice: Alimony,child support or separate maintenance income need not be revealed if you do not have it considered as a basis for repaying this obligation.)
Source:
$AnnualMonthlyHourly

Other Income: (Notice: Alimony,child support or separate maintenance income need not be revealed if you do not have it considered as a basis for repaying this obligation.)
Source
$AnnualMonthlyHourly

ADDITIONAL DEBTS

Place A * Next To Any Debts To Be Consolidated With This Loan.
A-Applicant
C-Co-Applicant Present Monthly Amount
B-Both Creditor’s Name & Address Account # Balance Payment Past Due
#$$$
#$$$
#$$$
#$$$
If more space is needed, list on attached sheets.

ADDITIONAL ASSETS

   Automobile Year, Make, & Model Financed Lien Holder



Please Describe Any Additional Assets, Their Value And Whether Or Not They Are Paid For:

SIGNATURES: You promise that everything you have stated in this request is correct to the best of your knowledge. If there are any important changes, you will notify us in writing immediately. You also agree to notify us of any change in your name, address or employment within a reasonable time thereafter. You authorize the credit union to obtain credit reports in connection with this request. If you request, the credit union will tell you the name and address of any credit bureau from which it received a credit report on you. You understand that it is a federal crime to willfully and deliberately provide incomplete or incorrect information on requests made to Federal Credit Unions or State Chartered Credit Unions insured by the NCUA. You understand that the credit union will rely on the information in the request and your credit report to make its decision. You also agree to notify us of any changes to your name, address or employment. I/We apply for the loan indicated in this application which may be secured by a mortgage or deed of trust on the property described herein and represent that the property will not be used for any illegal or restricted purpose. Verification may be obtained from any source named in this application I/We hereby consent to and authorize the lender, after giving of reasonable notice, to enter the improved property for the sole purpose of determining that the improvements specified in this application have been completed. I/We understand that the selection of a contractor or dealer, acceptance of material used and work performed is my/our responsibility. The lender does not guarantee the material or workmanship. I/We do intend to occupy the property as my/our primary residence throughout the duration of the mortgage.

X________________________________
Applicant Signature and Date

X________________________________
Co-Applicant Signature and Date

Please print, sign, and submit all forms along with your application. Failure to return this form signed, when your application is submitted for approval, will delay the processing of your application.

PLEASE PRINT AND RETAIN THE FOLLOWING HOME EQUITY DISCLOSURE
IMPORTANT TERMS OF OUR HOME EQUITY LINE OF CREDIT PLAN DOCUMENT FOR YOUR RECORDS

HOME EQUITY EARLY DISCLOSURE
IMPORTANT TERMS OF OUR HOME EQUITY LINE OF CREDIT PLAN

This disclosure contains important information about our Home Equity Line of Credit Plan. You should read it carefully and keep a copy for your records.

AVAILABILITY OF TERMS: All of the terms described below are subject to change. If these terms change (other than the annual percentage rate) and you decide, as a result, not to enter into an agreement with us, you are entitled to a refund of any fees that you pay to us or anyone else in connection with your application.

SECURITY INTEREST: We will take a security interest in your home. You could lose your home if you do not meet the obligations in your agreement with us.

POSSIBLE ACTIONS: We can terminate your in, require you to pay us the entire outstanding balance in one payment, and charge you certain fees, if (1) you engage in fraud or material misrepresentation in connection with the plan; (2) you do not meet the repayment terms of this plan; or (3) your action or inaction adversely affects the collateral or our rights in the collateral.

We can refuse to make additional extensions of credit or reduce your limit if (1) any reasons mentioned above exist; (2) the value of the dwelling securing the line declines significantly below its appraised value for purposes of the line; (3) we reasonably believe that you will not be able to meet the repayment requirements due to a material change in your financial circumstances; (4) you are in default of a material obligation of the agreement; (5) government action prevents us from imposing the annual percentage rate provided for in the agreement; (6) the priority of our security interest is adversely affected by government action to the extent that the value of the security interest is less than 120 percent of the credit line; (7) a regulatory agency has notified us that continued advances would constitute an unsafe and unsound business practice, or (8) the maximum annual percentage rate is reached.

MINIMUM PAYMENT REQUIREMENTS: You can obtain credit advances for 10 years. This period is called the “draw period.” At our option, we may renew or extend the draw period. After the draw period ends the repayment period will begin. The length of the repayment period will depend on the balance at the beginning of the repayment period. You will be required to make monthly payments during both the draw and repayment periods. Your minimum payment will be 2% of your outstanding balance or $200 whichever is greater. Your payment at all times will include any amounts past due and any amount by which you have exceeded your credit limit and all other charges. A change in the Annual Percentage Rate can cause the balance to be repaid more quickly or more slowly. When rates decrease, less interest is due so more of the payment repays the principal balance. If this happens, your final payment will be increased. Each time the Annual Percentage Rate increases, however, we will check to see if your payment is sufficient to pay the interest that is due. If not, your payment will be increased by an amount sufficient to cover all accrued finance charges.

MINIMUM PAYMENT EXAMPLE: If you made only the minimum monthly payment and took no other credit advances it would take 5 years, 5 months to pay off a credit advance of $10,000 at an ANNUAL PERCENTAGE RATE of 10.00%. During that period, you would make 65 payments ranging from $189.75 to $200.00.

APPLICATION FEE: You must pay an application fee of $250.00. This fee covers the cost of the appraisal, title search and lien recording. The application fee is non-refundable.

FEES AND CHARGES: You must pay certain fees to third parties to open the plan. These fees generally total between $0.00 and $500.00. If you ask, we will provide you with an itemization of the fees you will have to pay to third parties.

PROPERTY INSURANCE: You must carry insurance on the property that secures this plan.

REFUNDABILITY OF FEES: If you decide not to enter into this plan within three days of receiving this disclosure and the home equity brochure, you are entitled to a refund of any fee you may have already paid.

TRANSACTION REQUIREMENTS: The minimum credit advance that you can receive is $10,000.00 for the first advance and $100.00 for each subsequent advance.

TAX DEDUCTIBILITY: You should consult a tax advisor regarding the deductibility of interest and charges for the plan.

VARIABLE RATE FEATURE: This plan has a variable rate feature and the annual percentage rate (corresponding to the periodic rate) and the minimum payment can change as a result. The annual percentage rate includes only interest and no other costs.

The annual percentage rate is based on the value of an index. The index is the Prime Rate published in the Wall Street Journal. When a range of rates has been published, the highest rate is used. We will use the most recent index value available to us as of 5 days before the date of any annual percentage rate adjustment.

To determine the annual percentage rate that will apply to your account, we add a margin to the value of the index. Ask us for the current index value, margin and annual percentage rate. After you open a plan, rate information will be provided on periodic statements that we send you.

RATE CHANGES: The annual percentage rate can change quarterly on the first day of January, April, July, and October. There is no limit on the amount by which the annual percentage rate can change during any one year period. The maximum ANNUAL PERCENTAGE RATE that can apply is 18%. .

MAXIMUM RATE AND PAYMENT EXAMPLES: If you had an outstanding balance of $10,000, the minimum payment at the maximum ANNUAL PERCENTAGE RATE of 18% would be $200.00. This annual percentage rate could be reached at the time of the 1st payment.

HISTORICAL EXAMPLE: The following table shows how the annual percentage rate and the minimum payments for a single $10,000 credit advance would have change based on changes in the index over the past 15 years. The index values are from the last business day of July of each year.

While only one payment per year is shown, payments may have varied during each year.

The table assumes that no additional credit advances were taken, that only the minimum payments were made, and that the rate remained constant during each year. It does not necessarily indicate how the index or your payments will change in the future.

WALL STREET JOURNAL PRIME RATE INDEX TABLE

Year
(as of last business day of July)

Index
(Percent)

Margin
*(1) (Percent)

ANNUAL PERCENTAGE RATE

Monthly Payment (Dollars)

1993

6.00

.25

7.25*⁽³⁾

200.00*⁽²⁾

1994

7.25

.25

7.50

200.00*⁽²⁾

1995

8.75

.25

9.00

200.00*⁽²⁾

1996

8.25

.25

8.50

200.00*⁽²⁾

1997

8.50

.25

8.75

200.00*⁽²⁾

1998

8.50

.25

8.75

1999

8.00

.25

8.25

2000

9.50

.25

9.75

2001

6.75

.25

7.25*⁽³⁾

2002

4.75

.25

7.25*⁽³⁾

2003

4.00

.25

4.25

2004

4.25

.25

4.50

2005

6.25

.25

6.50

2006

8.25

.25

8.50

2007

8.25

.25

8.50

*(1) This is a margin we have used recently; your margin may be different.
*(2) This payment reflects the minimum payment of $200.00.
*(3) This ANNUAL PERCENTAGE RATE reflects a 7.25% floor.

Information For Government Monitoring Purposes
The following information is requested by the Federal Government for certain types of loans related to a dwelling, in order to monitor the lender’s compliance with equal credit opportunity and fair housing laws. You are not required to furnish this information, but are encouraged to do so. The law provides that a lender is required to note race and sex on the basis of visual observation or surname. If you do not wish to furnish the above information, please check the box below. [Lender must review the above material to assure that the disclosures satisfy all requirements to which the Lender is subject under applicable state law for the particular type of loan applied for.]

Borrower: I do not wish to furnish this information
Ethnicity:
Hispanic or Latino
Not Hispanic or Latino
Information not provided by applicant in mail, Internet, or telephone application (see App. A, I.D.2.)
Not Applicable
No co-applicant

Race:
American Indian or Alaska Native
Asian
Black or African American
Native Hawaiin or Other Pacific Islander
White
Information not provided by applicant in mail, internet or telephone application
Not Applicable
No co-applicant

Co-Borrower: I do not wish to furnish this information
Ethnicity:
Hispanic or Latino
Not Hispanic or Latino
Information not provided by applicant in mail, Internet, or telephone application (see App. A, I.D.2.)
Not Applicable
No co-applicant

Race:
American Indian or Alaska Native
Asian
Black or African American
Native Hawaiin or Other Pacific Islander
White
Information not provided by applicant in mail, internet or telephone application
Not Applicable
No co-applicant