Commercial Real Estate (Owner-occupied and Non-owner occupied)
Equipment (Vehicles, Machinery, etc.)
Collateralized Lines of Credit or Operating Loans (Shares, Cash Value Life Insurance (CVLI), Inventory, Accounts Receivable, etc.)
Business Credit Cards
Unsecured Revolving Lines of Credit (including CLOC) or unsecured loans (only for those who have w/ other collateralized business loans with us (this is a secondary product offered ONLY after there is a lending relationship established with IAACU)
Non-IL loans offered
Share secured or CVLI secured
Business Credit Cards
Unsecured Revolving Lines of Credit (available for COUNTRY Financial Agents only- CLOC only)
If your payments are set up via ACH or share transfer from your IAACU account, they will be automatically stopped when the loan is paid off. If you pay by payroll deduction, the payment amount will continue to pull from your paycheck and be deposited into your Savings account. To change your payroll deductions, call into our Service Center at 800-676-2541.
We send our files to the credit bureaus on the first business day of every month (only once a month). Once the credit reporting agencies update their information, your loan will show as paid off/closed on your credit report.
The credit union must have guaranteed funds on hand before releasing the title. If the vehicle is paid with cash or a cashier’s check, the title can be released that day in person. If it is paid off with a personal check, the title would be available when the funds clear. By mail, your title will arrive in 7-10 business days after the final payment has been processed.
Online, go to the “move money” tab, click “loan payment” and set up a transfer. On the mobile app, go to the “more” tab at the bottom of the page, then at the bottom of the list, select “loan payment” and set up a transfer. You can also call into IAACU at 800-676-2541 for a processing fee depending on payment method and amount due.
From an external account: Online, go to the “move money” tab, click “loan payment” and set up a recurring transfer. On the mobile app, go to the “more” tab at the bottom of the page, then at the bottom
of the list, select “loan payment” and set up a transfer. You can also set up recurring payments by calling into the service center at 800-676-2541. From another IAACU account: In online banking under the “move money” tab, select “transfer” and move money from your account to your loan.
Option 1 is a Home Equity Line of Credit (HELOC). This is a line set with a limit similar to a credit card and offers a variable rate. You only pay interest on the portion of the line you use. For example, you have a $20,000 limit but a $5,000 balance, your monthly payment is based on the $5,000 balance. This loan is great for home improvements, paying for education, or as a “safety net” for the unforeseen future. An interesting feature of a HELOC is the fixed rate partition. This allows you to designate a portion or all of the line at a fixed rate for a 10 year period. This works well for people who make major purchases on their line and intend to pay them off over a longer period of time without the risk of rising rates. There is a $100 processing fee for this option. As the fixed line is paid down it can be used again at the variable rate. For example if you have a line for $20,000 with $10,000 on fixed rate for college tuition. After paying for a year you have paid of $2,000 of the fixed portion you would have $12,000 available on the line.
Option 2 is a fixed rate Home Equity loan. This option is available from 5 to 30 years. The Home Equity loan is an installment loan with a fixed rate for the entire period. In this option you take the entire amount of the loan at closing and pay the loan back in equal monthly installments for the designated time period. The ability to draw funds in the future is not available on this type of loan.
A fixed rate is agreed upon at the time of closing and does not fluctuate with market conditions. The rate for your first payment will be the same rate as the last payment. A variable rate can change up or down at any point over the life of the loan depending on market conditions. The HELOC is our only variable home equity product.
If you have the HELOC, you can take an advance through on-line banking, writing a check from the HELOC checkbook, or by calling the Service Center. HELOC advances and checks have to be a minimum of $250. These advances can be taken at any time for the first ten years of the line.
The only fixed rate loan you are able to take an advance on is the HELOC with a fixed rate partition. There is a $100 processing fee to lock in additional funds and the $250 advance minimum still applies.
On a fixed rate loan the payments are determined by taking the amount of the loan and the interest rate and amortizing over the desired period of time. Payments for the lines of credit up to 80% LTV are interest only. Payment on lines of credit up to 90% are interest plus .5% of the principal balance.
EXAMPLE: If you had a balance of $20,000 on a 90% HELOC at a rate of 9.000% your payment would be calculated- 9.000% (rate) / 365 (days in year) = .00025 (daily interest) x $20,000 (balance) = $5.00 (daily) x 31 (day in month)
= $155 interest portion of the payment.
To figure the principle amount required- $20,000 (principle balance) x .5% (portion of principle due) = $100. You would then add $155 for interest to $100 for principle to get a total of $255.
These payments can change as the principle balance is paid down or increased through an advance.
We look at credit scores and credit history. Some programs are driven by your actual Credit Score and have minimum requirement. Other programs look less at the score and more at your overall credit history. This helps buyers with limited credit or members who had credit issues in the past and have rebuilt a new credit reputation. We figure your debt to income ratio which is the difference between you pretax and deduction income and your monthly debts. The industry standard is 28% of your monthly income can be used for mortgage payments, property taxes, and home owner’s insurance; and 38% of your income is used to satisfy all debts including the new mortgage. Other debts we include are car payments, credit card payments, student loans, etc. Finally we look at the value of the house as opposed to money down or financed amount. Conventional financing is going to require at least 5% cash down to qualify for a loan.
We have several programs that allow for low to no money down like the FHA loan and My Community 100. These programs also allow the borrower to have a higher debt to income ratio and make allowance for past credit issues.
We only charge fees we incur on your behalf during the mortgage process. The most typical fees are title and appraisal, but there are city, county and state specific fees depending on where you live. Most closings costs run between $600 and $1,200. Unlike other lenders, we do not charge “JUNK” fees such as underwriting, processing, or origination fees. We also price our loans without points (pre paid interest charged to the borrower in a lump sum amount at closing to be able to offer a lower interest rate) which also differentiates us from other lenders.
A Consumer Loan is basically any type of loan that does not have to do with you home. At the IAA Credit Union, our consumer loans include personal loans, secured loans, auto loans, recreational vehicle loans and credit cards.
There are a few options. You can apply online at our website or call into our call center and do the application over the phone. For auto loans, this process should be completed before purchasing the vehicle.
Qualification for these types of loans is primarily based upon the applicant’s monthly income compared to their monthly debt load, credit score and credit history. Each application is individually reviewed in order to best meet the needs of our members.
All loan rates are posted on our website or can be found at each of the branches.
They are subject to change often, so be sure to get the most updated rate. At this time, all posted rates include a .50% discount for Platinum Checking and .50% for auto pay.
Personal loan terms are generally for no more than 36 months. Auto Loan terms are generally for no more than 72 months. Recreational Vehicle Loan terms are determined by the collateral, applicant’s credit and loan amount.
Not necessarily, but it is recommended that you submit an application and are preapproved before signing for the vehicle. This way, all that the dealer will need to do is fax (309-557-2604) the purchase agreement to the credit union when the deal is complete. Once the final purchase price is established and documented, then the loan can be completed.
The credit union must have guaranteed funds on hand before releasing the title. If the vehicle is paid with cash or a cashier’s check, the title can be released that day. If it is paid off with a personal check, the title should be received within 7 to 10 business days.
We have an integrated payroll deduction program with several of our sponsoring companies including COUNTRY Financial, GROWMARK, and IAA (Illinois Farm Bureau). IAACU accepts payroll deduction from any employer able to ACH Payroll funds. Please check with your employer’s payroll department to see if they can support it.