Founded in 1935, Connexus Credit Union provides home equity loans and HELOCs in addition to auto loans, personal loans, student loans, credit cards and banking products.
Headquartered in Wausau, Wisconsin, the credit union’s primary branches and ATMs are located in Wisconsin, Minnesota, Ohio and New Hampshire. But it’s part of a CO-OP shared branch network with more than 5,600 shared branches throughout the U.S. and over 54,000 surcharge-free ATMs.
Connexus serves more than 360,000 members throughout all 50 states. It prides itself on maintaining a member-focused institution with values that include integrity, respect and open and honest communication.
Prospective borrowers will find numerous home equity product options and a robust online experience.
If you’re interested in getting a home equity loan or home equity line of credit, or HELOC, from Connexus, here are some key facts to know about the lender before you apply:
- Offers home equity loans and lines of credit to borrowers in all 50 states
- Requires a minimum FICO score of 640
- Offers home equity loans, HELOCs, interest-only HELOCs and a 5/1 home equity ARM
- Allows applications to be filled out entirely online or by phone
- Requires credit union membership in order to get a loan
Pros and cons
Diving into the details of Connexus Credit Union’s home equity products, here are some of the biggest benefits and drawbacks:
- Dedicated home equity team: Borrowers seeking a home equity loan or HELOC can call a dedicated representative to get personalized service throughout the process.
- Competitive interest rates: Interest rates from Connexus are on par with rates from the top home equity lenders. As of August 2019, its home equity loans start as low as 4.62 percent APR, while introductory rates for its HELOCs start as low as 3.49 percent APR. The credit union’s 5/1 ARM loan rates start at 5.01 percent APR.
- Fast approval: Connexus says its typical application response time is 34 to 48 hours, depending on when the application was submitted.
- Online application process: There’s no need to visit a branch to apply for a loan. Borrowers are able to apply entirely online. Those who desire more personalized service are able to apply via phone.
- High borrowing limits: Borrow up to 90 percent of your home’s equity with a fixed-rate home equity loan.
- Lengthy closing time: According to Connexus, it could take 30 to 45 days to close on a home equity loan, depending on how fast the paperwork is turned in and appraisals are finished. In contrast, Figure.com claims to send funds in as little as five days for a HELOC.
- Membership is required: Borrowers are required to join the credit union in order to get a loan. To join, you must be affiliated with a member community or company. You can also join the credit union’s charity, Connexus Association, by making a one-time $5 donation.
The fixed-rate home equity loan from Connexus allows you to borrow up to 90 percent of your home’s equity. It has a minimum loan amount of $5,000. Fixed rates start as low as 4.62 percent APR. Repayment options range from 60 to 240 months, or five years.
The lender uses an automated valuation system to determine the value of your home, but it will pursue other avenues of valuation if there are discrepancies with the address, or if the confidence score on the virtual appraisal is low.
Approval times range from 34 to 48 hours and closing takes anywhere from 30 to 45 days.
HELOCs from Connexus come with variable introductory rates starting as low as 3.49 percent APR. That rate can be locked in for six months with an 80 percent LTV. A rate of 3.99 percent APR can be locked in for 12 months at 80 percent LTV. After the introductory rate lock period ends, rates and terms are subject to change.
HELOCs allow borrowers to take out as much as they need, whenever they need it, up to the credit limit. The minimum loan amount is $5,000.
The draw period on this HELOC is 15 years, and there’s a 15-year repayment period. Minimum payments are 1.5 percent of the amount borrowed.
Approval and closing times are the same as the credit union’s home equity loan product — approval in as little as 34 to 48 hours and closing in anywhere from 30 to 45 days.
The variable introductory rate for an interest-only HELOC is 3.49 percent APR, which can be locked in for six months with an 80 percent LTV. A variable rate of 3.99 percent APR can be locked in for 12 months with an 80 percent LTV.
The terms and rates are subject to change after the intro period ends. Like the standard HELOC, borrowers can take out as much as they need whenever they need it up to their credit limit. It has a minimum loan amount of $5,000.
The draw period and repayment period are both 15 years. Finance charges start accruing on the day an advance is made.
Borrowers are approved in 34 to 48 hours and closing occurs in 30 to 45 days.
5/1 ARM home equity loan
The 5/1 ARM option from Connexus comes with a variable rate starting as low as 5.01 percent. The rate becomes variable after the initial five-year term and then adjusts annually with a minimum annual cap of two percent and a lifetime cap of six percent.
Homeowners can borrow up to 90 percent of their home’s equity with this loan. Repayment options range from 60 to 240 months. It has a minimum loan amount of $5,000.
Like other home equity products from Connexus, borrowers are approved in 34 to 48 hours and closing occurs in 30 to 45 days.
Connexus doesn’t charge an annual fee for any of its home equity products. But it does charge closing costs of $175 to $2,000, depending on the property location and loan terms.
It also charges a returned loan payment fee of $15, a convenience fee of $9.95 for paying by debit or credit card online ($14.95 by phone) and a forced place insurance processing fee of $12.
It doesn’t specify an origination fee or appraisal fee for any of its products.
Notably, the rates quoted for its HELOC products are introductory rates. After the introductory period, the rate may move up by as much as 2 percentage points per year until it hits a max of 6 percent over the introductory rate.
You need a credit score of at least 640 to be approved for a Connexus home equity loan or line of credit. Borrowers who get a loan from Connexus have an average FICO score of 727.
The lender has a maximum debt-to-income ratio of 43 percent, and borrowers can have a maximum CLTV of up to 90 percent.
Connexus doesn’t state a cash-in-reserve requirement for getting a loan, but applicants will need to provide proof of income, get a home appraisal and be requesting an amount proportionate to their income. The credit union won’t finance mobile homes.
How to apply
You can apply for a Connexus home equity product online or by calling (800) 845-5025.
To get started online, you can visit the connexuscu.org/loans/home-equity and click “Apply Now.” After that, the application is just a few steps. You’ll select your loan product, provide personal information and details about your property, submit your application and then wait for approval.
If you have questions about the loan application while applying online, you can call and talk to a dedicated representative.
If you’re interested in getting a home equity loan or line of credit from Connexus, you can start the process online at connexuscu.org or by phone (800-845-5025). Lending is available from 8 a.m. to 5 p.m. CST Monday through Friday.
If you have questions, the call center is available Monday through Saturday. Questions can also be sent through the credit union’s website through their contact page or at email@example.com. Connexus also offers an online chat feature.