How does a HELOC work?
A HELOC allows you to use the available equity in your property to finance your ADU project in a convenient line of credit. (HELOCs are only available for homes used as primary residences.)

How much can I borrow with a HELOC?
You can access up to 80% Loan to Value (LTV) of the available equity in your primary residence to pay for your ADU project with a line of credit $250,000 or less. For larger projects, you may qualify for a ‘Jumbo’ HELOC up to $500,000 with a maximum of 75% LTV.

How long is the term of a HELOC?
A Community Banks of Colorado HELOC has a 10-year term. You can access funds from the credit line for the ADU project and for any other purpose after the ADU project is completed. As you pay down your principal balance, those funds become available to use again in your line of credit.

What is the minimum monthly payment for a HELOC?
You can choose to make interest-only monthly payments, however a ‘balloon’ payment for the outstanding principal balance may be due at the end of the 10-year loan term.

What is the interest rate on a HELOC?
HELOC interest rates are variable, based on the Wall Street Journal Prime Rate, plus a margin. Contact Community Banks of Colorado for current rates. All loans are subject to credit approval.

Are there any fees or closing costs?
Community Banks of Colorado will pay up to $500 in closing costs, if any. The annual fee of $50 is also waived if you set up auto payments from your Community Banks of Colorado checking account.

Renovation/Construction Term Loan:

How does a Renovation/Construction Term Loan work?
A 2nd position renovation/construction loan accesses the estimated future equity in your property to finance your ADU project, based on the projected market value of your home once the project is complete. Renovation/construction loan fees vary by project, and can be provided upon request.

How much can I borrow with a Renovation/Construction Term Loan?
The renovation/construction loan will use up to 80% of the projected future equity in your home to pay for your ADU project. You can borrow up to $250,000 (subject to property value, available equity and other loan policy requirements).

Unlike standard construction loans, the renovation/construction does not require the payoff of your current mortgage. It is a Second Mortgage, which means it is a second lien on your home.

How long is the term of this loan?
The renovation/construction loan is a short-term loan, typically 12 months or less. You will work with 3D West to access the renovation loan in stages to complete the ADU project. Once the project is complete, a 15-year fixed rate, fixed term home equity loan will be used to pay off the renovation/construction loan.

What is the interest rate?
The interest rate for the renovation/construction loan is fixed throughout the term of the loan. Contact Community Banks of Colorado for current rates.

The interest rate for the home equity loan that pays off the renovation loan is fixed throughout the loan term. Rates are based on the loan and borrower profile.

What is the minimum monthly payment?
During the course of the renovation, minimum monthly payments are interest-only. During the term of the following home equity loan, monthly payments are principal and interest.

Are there any fees or closing costs?
Community Banks of Colorado will pay up to $500 in closing costs, if any.