Lending Solutions for Homes Outside of the US.

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1 Lending Solutions for Homes Outside of the US

2 Agenda Loan options for homes outside of the US Eligibility requirements Documentation requirements How to apply 2

3 UNFCU financing options for home purchases outside of the US 3

4 Overview of financing options International Home Loan unsecured loan for qualified members to build or buy residential property, purchase land, or pay off a mortgage outside the US Kenya mortgage secured loan for purchasing or refinancing a primary residence or owner-occupied second home in Nairobi, Kenya 4

5 International Home Loan Unsecured loan meaning no collateral is required - your promise to pay is guaranteed by your signature Benefits include: No application fees Competitive rates No pre-payment penalties No lien on the property Variable and fixed rate options Free credit life protection of up to $55,000 per member 5

6 UNFCU Kenya mortgages US dollar denominated mortgages There is a lien placed on the property Benefits include: Competitive rates Caps on variable rates which limit your risk exposure High financing limits Variable and fixed rate options 6

7 Eligibility requirements INTERNATIONAL HOME LOAN The International Home Loan is available to qualified UNFCU members who are: UN staff with a professional or field service contract located in an eligible country with a minimum of one year of UNFCU membership or five years of UN employment UN General Service staff who have a minimum of one year of UNFCU membership or five years of UN employment, and who are located in an eligible country and earning income in one of these currencies UN retirees receiving a pension from the UN joint pension fund in any of these currencies 7

8 Eligibility requirements KENYA MORTGAGES Consider securing a mortgage for your home purchase in Nairobi if you are a UNFCU member and 1 : Intend to occupy the property being financed (investment properties are not eligible); and Are not a permanent resident of the United States; and Are a UN employee with a current professional or field service contract located in one of these countries, or Are a UN General Service staff located in an eligible country and earning income in an eligible currency, or Are a UN retiree and receive a pension from the UN joint pension fund in an eligible currency. 1. Additional eligibility requirements may apply for the Kenya Mortgages. 8

9 Home loan options comparison Other features in addition to eligibility requirements are: Product name Loan limits Rates Fee Property type Regional scope International Home Loan (unsecured) $225,000 1 Variable APR 2 : 7.45%- 9.70% 3 Fixed APR 2 : 9.70% % No fee build or buy residential property, purchase land, or pay off a mortgage outside of the US only Kenya mortgage* (secured) $700,000 fixed $1 million variable Variable rate: 4.90% % 4 Fixed rate: 6.99% % 1.0% primary or secondary owner-occupied residence or future retirement owneroccupied residence select residential areas in Nairobi, Kenya 1. Your approved loan amount could be less than the amount you requested due to other loan obligations you have with UNFCU and other factors. UNFCU lending policy permits a combined individual maximum amount of unsecured credit extended to be no greater than $150,000 or $225,000 including unused lines of credit, if the applicant has or is applying for an International Home Loan. 2. APR = Annual percentage rate. Creditworthiness and loan amount will determine actual APR. 3. Rate quoted is a six-month introductory rate. During the six-month introductory period, the rate will not change. After the six-month introductory period, the rate is variable and can increase. 4. For variable rate mortgages, the quoted rate is fixed for the initial period of either 3 or 5 years, as applicable. Thereafter it will be subject to change annually. The variable rate is calculated each year by adding the applicable margin to the 1-year LIBOR rate. The maximum term is 15 years. * Permanent residents of the United States are not eligible for Kenya mortgages 9

10 Qualifying for a home loan 10

11 Eligible countries To minimize exposing our members to hardships in repaying an International Home Loan or a Kenya mortgage, both of which are in US dollars, a qualified member must be located in an eligible country and earn income in an eligible currency OR must be a qualified UN retiree and receive a pension from the UN joint pension fund in an eligible currency. We continuously evaluate and update our list of loan eligible countries based on factors such as local economic and political conditions. To view the full list of countries and currencies eligible for each loan, visit: International Home Loan: Kenya Mortgages: 11

12 Other qualification factors INTERNATIONAL HOME LOAN Ability to repay - in order to qualify for a loan, you must show that you have the ability to pay off the full amount of your loan Creditworthiness - a risk assessment of how likely a borrower is to default on their obligation to pay back their borrowed debt Established credit or borrowing history - a good credit score or borrowing history greatly increases your chances for qualifying and being approved for a loan 12

13 Other qualification factors KENYA MORTGAGES You must show that you have the ability to pay off the full amount of your loan. Your debt to income ratio and creditworthiness are typically how a lending institution gauges your candidacy for a loan. Your debt to income ratio is calculated using: A ratio of your monthly debt payments relative to your monthly income The likelihood of your current income continuing at the same level Employment type Loan to value Down payment Source of funds Location of the property 13

14 Documentation requirements 14

15 Required documentation International Home Loan Members applying for an International Home Loan will generally be asked to present the following documentation: Income and employment information Purchase agreement in the case of a home purchase Contractor s estimate in the case of construction Proof of down payment Wire to the seller or contractor Two personal references 15

16 Required documentation Kenya mortgages Members applying for a Kenya mortgage product will generally be asked to present the following documentation: National ID or passport Personal Identification Number (PIN) as issued by Kenya Revenue Authority Employment contract Bank statements of member s primary account Pay stubs Contract of sale witnessed by an advocate Credit report Pension statement for retirees Two personal references Life insurance policy documentation 16

17 Once you have purchased your home 17

18 Home Improvement Loan An unsecured loan for qualified members to make home improvements to any home that they own Benefits include: No application fees Competitive rates No pre-payment penalties No collateral is required Variable and fixed rate options Free credit life protection of up to $55,000 per member 18

19 How to apply 19

20 How to apply FOR THE INTERNATIONAL HOME LOAN OR HOME IMPROVEMENT LOAN Visit Contact us: Telephone: (toll-free numbers: Skype: unfcu.skype WebChat: please click on the Begin a WebChat session button on In-person: addresses and hours of operation for our branches and representative offices are posted on 20

21 Learn more about the Kenya mortgage process Call us in Nairobi: In-person: United Nations Federal Credit Union Block F, Lower Concourse United Nations Office at Nairobi Gigiri, Nairobi Skype: unfcu.skype 21