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Learn more about: Mortgages & Home Buying Download Quick Guide: Mortgage Loans

First Time Home Buyers Eligibility

To meet the needs of our first time low-to moderate income homebuyers, we will reduce our 30-year fixed rate by .125% and waive up to 1.5 points, if applicable.

You may be eligible for an FMFCU Home Loan if you meet the following six conditions:

1. You and all other adults who intend to live in the home within 12 months from closing are first-time homebuyers. This is defined as someone who has not owned (had Title to) their principal residence during the previous three years.
2. The gross annual household income for all adults that intend to occupy the home within one year from loan closing does not exceed the HUD Area Median Household Income Limit. All sources of income must be included, except for income received by persons under age 18 and income received by dependants enrolled in a full-time undergraduate program.
3. You have an acceptable credit history and the ability to make monthly payments on the home you expect to buy. Generally, you should plan to use no more than 30 percent of your income for your monthly mortgage payment. Our loan officers, mortgage insurer or a credit counseling agency can help you determine how much of a home you can afford, as well as any credit issues you may need to work on.
4. You have sufficient funds to pay standard closing costs, including prepaid tax and insurance items. These would commonly include such things as credit reports, appraisals, title fees, etc.  You may qualify for an affordable second mortgage from an accredited agency to be used toward the closing costs.  Homebuyer education is required and can be obtained through the credit union unless proof from an accredited agency is provided.
5. You have sufficient funds for a down payment on your prospective home although we offer programs with no down payment required. Borrowers who have a down payment of less than 20 percent of the home’s purchase price or appraised value are usually required to obtain mortgage insurance to protect FMFCU in the event that the mortgage becomes delinquent (you fall behind on your payments). The amount of the down payment differs according to the loan type.

Qualification

All loan requests must be submitted and come back as an investment quality loan through our Automated Underwriting System (AUS).  Borrowers with an underwriting score of 620 or more may qualify with no down payment while borrowers with an underwriting score of 600 or more may qualify with as little as a 3% down payment.