IDB-IIC Federal Credit Union
EspaƱol

Supplemental Housing Loans

Loan Rates

If you want to purchase a primary residence and need money for the down payment and closing costs, we can help! Under a program developed jointly with the IDB Administration, you can borrow the funds you need (subject to regular credit procedures) to make up the difference between the amount you can obtain on a first mortgage loan and the total purchase price of the property (including closing costs).

For example, suppose you are purchasing a home for $200,000 and your closing costs are $5,000. If you first mortgage loan is $180,000 then you need $25,000 for the down payment and closing costs. We can provide all or part of this $25,000 as a supplemental housing loan!

Special Repayment Plan for Homes under $100,000

If you have a net family income after taxes below $35,000 and purchase a residence whose total purchase price, including closing costs, is $100,000, you may repay your Supplemental Housing Loan over 10 years. You pay interest only for the first 3 years, then principal and interest the remaining 7 years.

The specific terms of our Supplemental Housing Loan program are shown below:

Eligibility
2 years employment at the IDB or IIC

Maximum Loan
Up to 50% of annual salary, with a limit of $40,000

Repayment Term
7 years

Interest Rate
Our variable rate is based on index of 1-year U.S. Treasury obligations. Your starting interest rate will be the index rate in effect at the time your loan is approved plus the required margin of 3.00%. If you also obtain your first mortgage from the Credit Union, your margin will be reduced to 2.75 %.

The interest rate will be adjusted annually on the first day of January. Adjustments will be limited to 2.00% per year with a maximum of 6.00% over the life of the loan.

Security
Irrevocable assignment of your IDB or IIC termination benefits to the Credit Union.

Other Requirements

  1. Irrevocable authorization to the IDB or IIC to deposit directly to the Credit Union from your salary an amount sufficient to cover your loan payments.
  2. Loan disbursement on the date of settlement with check made payable to borrower and the settlement firm.
  3. Full repayment of loan if your employment with the IDB or IIC is terminated or you cease using the property as your primary residence.

Just contact our Lending Department* to get started.

 
National Credit Union AdministrationYour savings federally insured to at least $250,000 and backed by the National Credit Union Administration, a U.S. Government agency.