First-Time Home Buyer Mortgage Options
FMFCU has a variety of mortgage options for first-time homebuyers. Finding the perfect home is the hard part; a FMFCU mortgage will be the easy part. We can help you realize the milestone of homeownership faster without the barrier of a 20% down payment.
95-97% Conventional Mortgage
- Qualify for this fixed-rate or adjustable-rate conventional mortgage with as little as a 3%* to 5%** down payment.
- Fixed-rates loans of 10, 15, 20, 25, and 30 years available.
- Adjustable rate (ARM) loans of 3/6, 5/6, and 7/6 available.
- Private Mortgage Insurance (PMI) and No PMI options available.
Remaining funds needed to settle can come from a variety of sources: gift, seller’s assist up to 3% of the purchase price (6% seller’s assist allowable with a 10% down payment), government grant, a withdrawal or loan against retirement funds, etc. We can lend you up to the conforming loan limit, presently at $806,500.
Owner needs to occupy the home as primary residence. Eligible property types are owner occupied primary residences, planned unit developments (PUDs) and condominiums. Eligible loan types: all fixed rate and adjustable rate mortgage products. Fixed rates terms: 30, 25, 20, 15, and 10 years. ARM products: 3/6 ARM, 5/6 ARM, 7/6 ARM, which often offer a significantly lower start rate than our fixed rate options.
Mortgage type requires Private Mortgage Insurance (PMI), insurance that the borrower pays to the lender and its coverage protects the lender in the event of default. PMI is not required when borrower(s) have a 20% down payment or more. Eligible for purchases only. Ask about our no PMI options.
We also offer 3%-5% down payment options with no qualifying income limits.
*3% down payment option requires total annual qualifying income limit be 80% of Area Median Income (AMI). For help identifying income and property eligibility, use Freddie Mac’s home Possible Eligibility Map. Minimum of one borrower must receive home-ownership education prior to settlement. FMFCU will provide this information.
**5% down payment option has no income restrictions and can be used for 1 to 2 unit primary residence.
Federal Home Loan Bank First Front Door (FFD) Program
A seasonal grant program that offers qualifying buyers a $15,000 benefit to be used toward closing costs. Usually, available March-April every year and the funds go fast. We suggest that you are pre-approved by us by the end of February so we can attempt to reserve funds for you.
Pennsylvania Housing Finance Agency (PHFA) Programs
FMFCU participates in the following PHFA programs:
Keystone Forgivable in Ten Years (K-FIT) A second mortgage used for down payment and closing costs. The second mortgage amount is 5% of the lesser of the purchase price or appraised value with no maximum dollar amount. The second mortgage is forgiven at a rate of 10% per year over a ten-year period.
The Keystone Advantage Assistance Loan Program provides a second mortgage loan to help with the costs associated with the purchase of a home. Qualified borrowers can receive up to four percent (4%) of the purchase price or market value or $6,000 (whichever is less) in downpayment and closing cost assistance to be repaid monthly. The assistance loan will be amortized over a ten-year term at zero percent (0%) interest.
Homebuyer education is required and a homebuyer certificate is required before loan approval.
FMFCU 5-year/6-month Adjustable Rate Mortgage (ARM)
This first-time homebuyer mortgage option is unique to FMFCU. Financing with a 5% down payment and no Private Mortgage Insurance (PMI) for homebuyers who meet the required criteria. A great choice for members with good credit and low monthly debt who have found it challenging to save enough money for both a down payment and closing costs.
- Discounted Start Rate
- Rate is fixed for the first five years
- Adjusts every 6 months thereafter
- Cash out refinances up to 90% of appraised value
- No income restrictions
- 1-2 unit primary residences or 1-unit second homes
- No prepayment penalty allows refinancing into a fixed-rate product at any time (once there is sufficient equity)
- 3% – 5% down payment options with PMI is available
FMFCU 7-year/6-month Adjustable Rate Mortgage (ARM)
This first-time homebuyer mortgage option is unique to FMFCU. Financing with a 10% down payment and no Private Mortgage Insurance (PMI) for homebuyers who meet the required criteria. A great choice for members with good credit and low monthly debt who have found it challenging to save enough money for both a down payment and closing costs.
- Discounted Start Rate
- Rate is fixed for the first seven years
- Adjusts every 6 months thereafter
- No income restrictions
- 1-2 unit primary residences or 1-unit second homes
- No prepayment penalty allows refinancing into a fixed-rate product at any time (once there is sufficient equity)
- 3% – 5% down payment options with PMI is available
Have more questions? Ready to move forward? FMFCU’s experienced mortgage officers will help you along the way.