First Time Home Buyers
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.
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 1/1, 3/1, 5/1, 5/5, 7/1, and 10/1 available.
- Private Mortgage Insurance (PMI) required.
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. Low down payment program requires minimum credit score of at least 660 and we can lend you up to the conforming loan limit, presently at $484,350.
Owner need 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: 1/1 ARM, 3/1 ARM, 5/1 ARM, 5/5 ARM, 7/1 ARM and 10/1 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. Loans require Private Mortgage Insurance (PMI). PMI is not required when borrower(s) have a 20% down payment or more
Eligible for purchases only. Not eligible for cash out refinance transactions.
*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.
FMFCU 5/5 Adjustable Rate Mortgage (ARM)
This first-time homebuyer mortgage option is unique to FMFCU. 100% financing with no down payment and no Private Mortgage Insurance (PMI) for homebuyers who meet the required criteria. An 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.
- Rate is fixed for the first five years
- Adjusts every five years 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)
- Requires less money at closing than an FHA Mortgage and does nto carry upfront Monthly Insurance Premium (MIP) fee (1.75%) or monthly MIP charge
Minimum borrower contribution is 0% of the purchase price from borrower funds and the remainder of funds to close can come from: gift, seller’s assist up to 4% of the purchase price, government grant, a withdrawal or loan against retirement funds, etc.
Rate is fixed for the first five years and adjusts every five years thereafter. No prepayment penalty, which allows you to refinance at any time into a fixed-rate product (once you have sufficient equity). Option requires less money to close than an FHA mortgage and does not carry upfront Monthly Insurance Premium (MIP) fee (1.75%) or ever-increasing monthly MIP charge.
Fixed-Rate Mortgage with No PMI
This option is unique to FMFCU. 100% financing and 0% down payment with no Private Mortgage Insurance (PMI) for homebuyers meeting required criteria. A good option for those with good credit and low monthly debt, who have found it challenging to save enough for a down payment and closing costs.
- 1-2 unit owner occupied purchase transactions only
- $500,000 maximum loan amount
- 30-, 25-, 15-, and 10- year fixed-rate mortgage options
- 0-15% down available for qualified buyers with no PMI
- Seller’s assist up to 4% of sales price permitted and 6% for those with 10% down payment or more
First-Time Homebuyer Mortgage Options
Have more questions? Ready to move forward? FMFCU’s experienced mortgage officers will help you along the way.