Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Home Equity HELOCs Utah Community Credit Union Home Equity Review Updated Jun 26, 2023   |   6-min read Reviewed by Zina Kumok Reviewed by Zina Kumok Expertise: Student loans, credit scores, personal loans, banking, education planning Zina Kumok is a personal finance writer dedicated to explaining complex financial topics so real people can understand them. As a former newspaper reporter, she has covered everything from murder trials to the Final Four. Learn more about Zina Kumok View Rateson Utah Community Credit Union’s websiteEditorial RatingEditorial RatingWhat we like:Low feesRates (APR)Lowest rates starting at 2.99% for the first six months. Initial fixed rates starting at 6.74%.Loan amounts$10,000 minimumRepayment terms10 or 15 yearsMinimum credit scoreNot statedSee how Utah Community Credit Union compares to other HELOC lenders.Best HELOCs Utah Community Credit Union (UCCU) began in 1956 as a nonprofit bank to help locals. More than 50 years later, Utah Community Credit Union provides banking and credit services, including home equity lines of credit (HELOCs), to borrowers in certain counties in Utah (listed below). We researched how the home equity line of credit offering from UCCU stacks up against the competition. In this review: How does UCCU help me access my home equity?Pros and cons of a UCCU HELOCWhat do UCCU’s customers say?Do I qualify for a HELOC from UCCU?How do I apply with UCCU?How does UCCU determine how much I can borrow?What does the appraisal process look like?Does UCCU charge any fees?Does UCCU have a customer service team? How does UCCU help me access my home equity? UCCU offers a home equity line of credit (HELOC), which lets you draw upon the equity in your house. UCCU does not offer home equity loans. Check out our resource to find out what you can use a HELOC for. A HELOC is a line of credit, which means you can access the funds at any point during the draw period. It works like a credit card, so you can take out as little or as much as you want up to the limit. Once the draw period is over, you can no longer access the funds. You then enter the repayment period, in which you must pay back the funds you borrowed during the draw period. UCCU offers two types of HELOCs: standard and initial fixed. The standard option offers a 10-year draw period and a 15-year repayment term. The initial fixed HELOC has a five-year draw period and a 10-year repayment period. HELOCs often have lower interest rates than other types of loans, but HELOCs have one major caveat: Your home functions as collateral with the lender. If you default on a HELOC, the lender can repossess your home. UCCU HELOC termsRates (APR)Standard: Intro rates starting at 2.99% for the first 6 months, then starting at 6.24%. Initial fixed: Starting at 6.74%. Rate discountsNoneLoan amounts$10,000 minimum Draw periodStandard: 10 yearsInitial fixed: 5 yearsRepayment periodStandard: 15 years Initial fixed: 10 yearsMaximum LTV90%Minimum credit scoreNot statedMinimum incomeNot statedFeesPrepayment penalty if you pay off the credit line within 24 months. Late fee (greater of 5% of the payment or $25). Pros and cons of a UCCU HELOC Pros High loan-to-value (LTV) limit. Few fees. Low intro APR rate. Cons Shorter repayment period than many other lenders. Prepayment fees may apply. No preapproval option. Membership is limited to certain counties in Utah. Counties are listed below. If you’re unsure whether UCCU is right for your home equity needs, check out our list of home equity companies. What do UCCU’s customers say about the company? SourceRatingNumber of reviewsBetter Business Bureau1 out of 59 Ratings collected on November 27, 2022 Before taking out a loan, you should compare multiple lenders to find one with low interest rates, flexible terms, and positive customer reviews. Companies that prioritize customer service will be more pleasant to interact with. And if you run into a problem, you may have an easier time resolving it if you choose a lender with excellent reviews. Few customer reviews are available online with UCCU. It rates a D- on the Better Business Bureau website with 14 total complaints. However, no complaints mention a HELOC. Do I qualify for a HELOC from UCCU? UCCU does not share its minimum income or credit score requirements. It also doesn’t offer a preapproval option, so the only way to find out if you’re eligible is to complete a full application. This will result in a hard inquiry on your credit report, which could cause a slight drop in your credit score. You must be a member of the UCCU credit union to qualify. Only those who work, live, or attend school in the following Utah counties are eligible for UCCU membership: Box Elder CountyDavis CountyJuab CountyMorgan CountySalt Lake CountySanpete CountySummit CountyTooele CountyUtah CountyWasatch CountyWeber County How do I apply with UCCU? Applying for a HELOC through UCCU is simple. First, you must create an online account. You can use this later to log on and check the status of your HELOC application. You will have to provide basic details such as your full legal name, mailing address, and phone number. Next, you’ll input information about the home, including the type of property, address, and estimated value. You’ll also disclose whether it’s a primary residence, secondary residence, or rental home. Once you submit the information, UCCU will let you know whether your property is eligible for a HELOC. It may also contact you with more questions and to schedule an appraisal. How does UCCU determine how much I can borrow? UCCU looks factors including your income, your credit score, and the home’s LTV. UCCU allows a maximum combined loan-to-value (CLTV) of 90%, while most other lenders allow a lower maximum CLTV of 80%. CLTV is the ratio of all secured loans on the home to the property’s market value. You can calculate LTV if you divide the current mortgage balance by the home’s current market value. For example, let’s say you have $100,000 remaining on your mortgage on a home worth $400,000. (100,000 remaining balance / $400,000 home value) x 100 = 25% LTV In this case, you could qualify for a HELOC worth up to $260,000 with UCCU based on the following formula: $400,000 home value x 90% max CLTV = $360,000 max liens allowed $360,000 – $100,000 remaining mortgage balance = $260,000 tappable equity Read more about how to calculate home equity. What does the appraisal process look like? Because your home’s current market value determines the line of credit, the lender will often order an appraisal to calculate the value. If the lender determines an in-person appraisal is necessary, the appraiser will visit your home, note any renovations or changes you’ve made, and calculate the square footage. They will compare your home to similar properties in the neighborhood that recently sold. Once the appraiser submits the value to the lender, you’ll find out how much you can borrow with a HELOC. If you disagree with the appraiser’s report, you can file an appeal and request a new appraisal. Does UCCU charge any fees? UCCU does not charge closing costs. However, if you repay the HELOC within 24 months, you will owe a prepayment penalty equal to the appraisal, title, and insurance fees. If you make a late payment, the late fee is 5% of the payment or $25, whichever is greater. Does UCCU have a customer service team? Phone: Customers can call 801-223-8188 Monday through Friday between 8 a.m. and 6 p.m. Mountain time; Saturdays between 9 a.m. and 2 p.m. Email: [email protected] or [email protected]. In person: UCCU has 20 branches across Utah.