HDFC Loans

HDFC Loan Basics

Any HDFC building can borrow from LES People’s FCU. LES People’s provides personalized service and expertise in New York City HDFC laws and codes.

  • LES People’s FCU offers loans to buildings for capital improvement, repairs, establishing a reserve account, tax relief, and other worthwhile purposes

  • Amounts start at $10,001 with no maximum. Our regulatory agent National Credit Union Administration sets a maximum amount at 15% of our net worth. When a loan amount request exceeds this limit, we look for other credit union partners to participate in the loan

  • Loans terms will extend up to 15 years depending on the amount borrowed, the uses of funds, and the repayment ability of the borrower.  Longer amortization periods of 360 months may be offered based on the borrower’s repayment ability; however, in these cases, a balloon payment will be due in the 180th month

  • Interest Rates will be based on the 3-Year Treasury Rate rounded to the next highest quarter of one percent or a floor rate of 7.75%, whichever is greater. Added to this index will be a margin ranging between 250 and 450 basis points depending on the overall creditworthiness of the borrower.  Interest Rates will be subject to change every three years based on current market rates and conditions

  • Loan Processing takes approximately 30 days for all complete application packages received by LES People’s FCU

  • Loan Closing will take a 45-60 day period following receipt of a signed commitment letter from the approved applicant

All loans that are originated by LES People’s FCU – whether held in full by LES People’s FCU, or shared in part with another credit union under loan participation – will be serviced by LES People’s FCU, including escrowing for applicable taxes and insurance.

Apply for an HDFC Loan

Gather the following information and submit the complete package to our Commercial Lending Manager at lending@lespfcu.org.

Security and Special Covenants

  • Loans are secured by a valid first mortgage on the land and building owned by the borrower

  • LES People’s FCU will lend up to 75% of the appraised value of the land and building being used to secure the loan

  • Article 8A Loans and loans from other public funds are subordinated to the LES People’s FCU’s Mortgage Loan

 

Contact our Loan Specialist at (212) 529-8197 or by emailing lending@lespfcu.org.