Credit union offers home equity loans for flooding repairs

CitizensFirst Credit Union recently established an emergency relief fund of $1.5 million in order to offer as low as possible fixed rate home equity loans to members who own homes damaged by flooding in Northeast Wisconsin.

The loans are offered on a first-come, first-served basis, and can be used for clean-up services, home repairs, wall repair, or replacement of furnaces, hot water heaters, washer and dryers, or furniture damaged in the flood. Each household can borrow up to $5,000 for five years.

“We know some of our members suffered significant losses,” said Carla Altepeter, president/CEO of CitizensFirst Credit Union, which serves 31,000 members in counties hard-hit by flooding. “This isn’t a marketing promotion. It’s the best way we knew of to help as many members as possible.

“We are subsidizing the operating costs associated with these loans, so we can guarantee this low interest rate for the full-term of the loan, not just a couple of months like other programs. In addition, we have streamlined the normal approval process to get the money to our members as quickly as possible. And our employees volunteered to work extra hours so we could be more responsive to members’ needs at this difficult time.”

The below-market-rate home equity loan is just one part of CitizensFirst’s disaster relief program for its members, which includes:

• Emergency fund disaster relief loans: Members who own homes damaged by flooding can qualify for a five-year home equity loan up to $5,000 with a 3.5-percent APR fixed interest rate. Must meet credit requirements and be a member of CitizensFirst as of the day of the flood, June 12
• Low-interest auto loans: CitizensFirst is extending its recently ended auto loan special to members who need to replace cars lost or damaged in the flood. Rates on these auto loans are as low as 3.99 percent APR.0
• Skip-a-Payment: Qualifying members with consumer loans at CitizensFirst can skip one month’s loan payment with no fees.
• Financial consultations: CitizensFirst team members are available to help members understand their financial options. For example, if a member needs to make repairs and wants to understand the difference between using 401(k) funds or taking out a loan, CitizensFirst team members can help crunch the numbers.
  

“These options are available to help members while they apply for federal disaster relief funds,” said Altepeter. “Members can use these funds for immediate needs, home repairs, temporary housing or replacement of furnaces, hot water heaters or other items lost in flooding.”