Mortgage & Home Loan Disclosures
Pursuant to Michigan Public Act 660 of 2002
If you obtain this loan, the lender will have a mortgage on your home. You could lose your home, and all money you have invested in it, if you do not meet your obligations under the loan, including making all your payments.
Mortgage loans rates and closing costs and fees vary based on many factors, including your particular credit and financial circumstances, your earnings history, the loan-to-value requested, and the type of property that will secure your loan. Higher rates and fees may be applicable depending on the individual circumstances of a particular consumer's application.
You should shop around and compare loan rates and fees. This particular loan may have a higher rate and total points and fees than other mortgage loans. You should consider consulting a qualified independent credit counselor or other experienced financial advisor regarding the rate, fees and provisions of this mortgage loan before you proceed. For information on contacting a qualified credit counselor, ask your lender or contact the United States Department of Housing and Urban Developments online or at 800-569-4287 for a list of counselors.
Your payments on existing debts contribute to your credit ratings. You should not accept any advice to ignore your regular payments to your existing creditors.
HUD APPROVED COUNSELING CENTERS
DETROIT NON-PROFIT HOUSING CORPORATION
8904 Woodward Avenue, Suite 279
Detroit, MI 48202
MICHIGAN STATE UNIVERSITY EXTENSION SERVICES
240 Agriculture Hall, MSU Campus
East Lansing, MI 48824
GREENPATH DEBT SOLUTIONS
2111 Woodward Avenue, Suite 906
Detroit, MI 48201
GREENPATH DEBT SOLUTIONS
612 S. Creyts Road, Suite C
Lansing, MI 48917
MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY
735 E. Michigan Avenue
Lansing, MI 48909
To Our Members and Those Eligible to Become Members
MSUFCU wants you to know that with respect to mortgage loans and Home Improvement Loans the following policies are utilized:
That any person has the right to make a loan inquiry.
That any person has the right to file a written loan application for a mortgage loan or Home Improvement Loan with MSUFCU.
That any person has the right to receive a written response to an inquiry or application.
It is the MSUFCU's policy to consider the creditworthiness of an applicant. The general factors used for establishing creditworthiness include:
A. Applicant must be a member in good standing with MSUFCU.
B. The applicant's income is sufficient to repay the loan according to its terms.
C. The applicant's total debt load will not impair repayment of the loan requested.
D. The debt ratio of housing expense to income will not impair the repayment of the loan requested.
E. The applicant's past credit history with MSUFCU and other credit grantors has been satisfactory.
F. The applicant's job history and time lived at current address show stability.
Market value is the most probable price a property should bring in a competitive and open market under all conditions for a fair sale, assuming the price is not affected by undue stimulus.
MSUFCU will consider the market value of proposed security when evaluating a loan application.
The presence of an active community group will be taken into consideration for home mortgage and Home Improvement Loans in neighborhoods which are historic or in physical decline.
Home mortgage loans are limited to within the state of Michigan. Home Improvement Loans are made throughout the United States.
Regular residential properties require Private Mortgage Insurance (PMI) where the Loan-to-Value Ratio (L-T-V) exceeds 80% of the lesser of the market value or purchase price.
Rates initially quoted are subject to change during the period prior to closing due to changing economic conditions.
Minimum Loan Amounts
The minimum home mortgage loan amount is $10,000. The minimum Home Improvement Loan amount is $1,000.
Only real estate located within the state of Michigan will be considered for home mortgage loans. Multiple units, up to four, will be considered for first mortgage loans and home equity lines of credit/second mortgages provided that one of the units is owner-occupied.
The residence must have an acceptable appraisal and useful life of not less than the length of the amortization period for the mortgage. The property must have all the usual improvements necessary to sustain acceptable living standards and meet zoning ordinances and laws required for occupancy.
Home Improvement Loans may be granted on an unsecured basis or with the various types of collateral acceptable to MSUFCU.
During periods in which there is a shortage of loanable funds, MSUFCU will process all loan applications in the order they are received.
With the exception of loans to officials of MSUFCU, the loan officersand underwriters have the responsibility for granting and denying loans to members subject to the restrictions set forth by the board of directors, the bylaws of MSUFCU, and the laws which govern its operation.
MSUFCU requires proof of clear title to the security being offered. Home mortgage loans will require title searches with the appropriate level of title insurance issued through a member company of the American Land Title Association (ALTA).
The objectives of an appraisal are:
A. To establish a current market value.
B. To establish that the security offered does exist.
C. To establish that the property offered as a security does have all the usual improvements necessary to sustain acceptable living standards and meets zoning ordinances and laws required for occupancy.
D. To establish that the residence does have a useful life not less than the amortization period for the mortgage.
The appraisal may affect the amount of the down payment required. The required down payment is based on the lesser value of the purchase price or the market value as established by the appraisal.
Verification of Funds
Certain fees may be involved in applying for a mortgage loan, such as appraisal and rate lock commitment fees. In addition, if the mortgage loan is approved, there will be settlement fees which must also be paid.
MSUFCU reserves the right to verify funds necessary to make the required down payment and cover closing costs.
Collateral other than real estate being purchased or refinanced will not be considered for home mortgage loans.
Collateral for Home Improvement Loans, if required, will be evaluated on its individual merit and market value.
Property in a Flood Plain
Flood insurance is required on all home mortgage loans where real estate is located in a designated flood hazard area.
Flood insurance is available through the National Flood Insurance Program.
Cosigners/Guarantors are not acceptable on home mortgage loan applications.
Cosigners/Guarantors for Home Improvement Loans must meet the same creditworthiness criteria as the applicant. However, the cosigner/guarantor needs not be a member of MSUFCU.
A. The member's signature and/or collateral is sufficient to cover the loan requested.
B. The loan purpose is provident and productive.
C. The applicant is of good character.
D. Property surveys may be required as a condition of issuance of a title insurance policy.
E. Adequate homeowners/hazard insurance is required on all secured loans and maintained for the term of the loan.