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 5/6, 7/6, and 10/6 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 $647,200.
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: 5/6 ARM, 7/6 ARM, 10/6 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.
*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 5yr/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.
- 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)
- Requires less money at closing than an FHA Mortgage and does not carry upfront Monthly Insurance Premium (MIP) fee (1.75%) or monthly MIP charge
Have more questions? Ready to move forward? FMFCU’s experienced mortgage officers will help you along the way.