ST. PAUL, Minn. – Affinity Plus Federal Credit Union reported it has resumed making construction loans at its 28 branches.
At the same time, the credit union has announced a new bike loan program.
In a statement, John Simonsen, director of real estate, said Affinity Plus is again offering the loans because a red-hot housing market, especially in the Twin Cities metropolitan area, is moving potential home buyers to consider construction.
“Homes are flying off the market. Bidding wars are going on. Sellers are getting top-notch prices on homes. That’s what pushing people to consider construction,” he said. “In that context, it makes sense for us to resume.”
Affinity Plus said it considers its role to not just offer construction loans but guide members through the complex, often year-long building process. “We feel Affinity Plus is positioned really well because of our past experience, the relationships we establish with our members and our core values,” Simonsen said.
Simonsen said Affinity Plus’ construction-loan process includes several key features. Borrowers will pay only interest through construction. Then, as the project completes, the mortgage loan officer will develop a new, conventional loan and refinance at closing.
The credit union said it expects to see a second wave of people interested in home building in late summer and early autumn. This permits builders to get the foundation in place before first frost arrives and give them the opportunity to continue construction through the winter, APCU noted.
Meanwhile, APRCU said it has introduced a bicycle loan for members statewide so that they can purchase better-quality bicycles and accompanying accessories. Officials note the new loan – with amounts ranging from $500 to $5,000 – taps into an ever-growing interest in using the two-wheeled vehicles for transportation and recreation.
Affinity Plus said its new bicycle loan comes on the heels of a new University of Minnesota study that notes Minnesota’s bicycling industry in 2014 produced an estimated $780-million of economic activity, created more than 5,500 jobs and saved millions in healthcare costs.
“Minnesota is amazing in how it recognizes the value of and supports bicyclists, no matter if they’re biking to work, riding for fitness, for the environment, or just for fun,” said Corey Rupp, vice president of consumer lending. “Affinity Plus is pleased to provide a way for people of all ages and interest levels to afford and purchase quality bicycles.”
The loan offers terms out to 36 months, and financing can be for up to 120% of the bicycle’s purchase price so that members can purchase accessories, including helmets, locks, front and rear lights, and more.
In 2014, Affinity Plus designated a traditional automobile drive-thru lane at the University branch as a “bike-thru” lane. It’s now a commonplace sight there to see bicyclists ride up to complete transactions alongside cars and trucks, he said.
The credit union added that the same University of Minnesota study notes from 2007 to 2016, bicycle ridership in Minneapolis grew 49%. In its busiest locations, nearly 3,600 bicyclists pass by daily. And the busiest biking intersection in Minnesota? Just a mile from Affinity Plus’ University branch, APFCU said.