First-Time Home Buyer Loans
You can become a happy homeowner sooner than you think with a low down payment, low closing costs, and great rates!
Because everybody has to start somewhere!
The loans in our extra special First-Time Home Buyers Program are built for people just like you on the first – and very important – step of the property ladder.
The Details
We’ve got loan options to cover all your first-time home buying bases. First up is the Conventional Home Loan with a name that makes it sound kinda boring, but the great rates and flexible terms mean it is actually an exceptional choice.
Then comes what we in the business call an FHA loan, backed by the good people at the Federal Housing Administration and built for people with low to moderate income. (No billionaires allowed!) Finally, the Department of Veterans Affairs offers VA loans to all you brave Veterans and active-duty service members out there.
The thing about FHA and VA loans is that the feds have got your back as a first-time home buyer so credit unions like UMe can give you an amazing offer on your first-ever mortgage!
Loan Options For First-Time Home Buyers
Conventional Loan
A private loan between you and UMe that’s good for first-time and repeat buyers alike.
FHA Loan
All you need is a steady income, fair credit, and a bit of a down payment and you’re good to go!
VA Loan
If you’re a Veteran or qualifying member of our military, this loan lets you buy a home as easy as pie.
Rates
|
LOAN TYPE |
DOWN PAYMENT |
TERMS |
APR* |
|---|---|---|---|
|
LOAN TYPE Conventional Loan |
DOWN PAYMENT As low as 5% with PMI |
TERMS Call for estimate |
APR* Call for estimate |
|
LOAN TYPE FHA Loan |
DOWN PAYMENT As low as 3.5% with UFMI |
TERMS Call for estimate |
APR* Call for estimate |
|
LOAN TYPE VA Loan |
DOWN PAYMENT As low as 0% with VA funding fee |
TERMS Call for estimate |
APR* Call for estimate |
A few things you should keep handy:
To apply for your home loan, you first get to go fishing for recent or current versions of a bunch of different documents. We get it. It’s a lot. But just think – at the end of all this, you’ll be a homeowner!
- Photo ID and proof of address
- Bank statements and proof of any other assets, like a Rolls Royce or private jet
- Tax returns (You thought they’d never come in handy!)
- Pay stubs, W-2s, 1099s, and other evidence of how hard you work
- Gift letters if a friend or family member is springing for your down payment
- Evidence of your renting history (or previous homeownership if this isn’t your first rodeo)
- Credit history – you may want to find out your score before we get your report from the FICO wizards
Our super simple six-step loan process
Gather up a few factoids about yourself, your income, and your financial situation.
Talk to one of our friendly home loan gurus about which first-time home buyer loan is perfect for you.
Choose how you want to apply: online, over the phone, or good old-fashioned face-to-face.
We’ll review your info, run a credit check, and let you know if you won gold, silver, or bronze!
Let’s assume you’re pre-approved, because why wouldn’t you be? You can now start looking for a home!
We’ll hold your hand every step of the way through the closing process until you sign on the dotted line.
2 great payment options, the choice is yours!
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Payroll Deduction
If you have a loan with the credit union, payroll deduction is a convenient way to have your loan payments automatically deducted from your paycheck.
To find out if you’re eligible for payroll deduction, contact your employer’s benefits department. If you already have payroll deduction set up with the credit union and want to set up automatic loan payments, call us at (818) 238-2900.
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Automatic Transfers
Automate transfer allow members to transfer funds within UMe accounts on a recurring schedule.
You can set up an automatic transfer to make your loan payment, so you won’t have to think about it each month.
To set up an automatic transfer, fill out our Share to Loan Transfer Form or give us a call at (818) 238-2900.
First-Time Home Buyer Mortgage FAQs
If you’re new to the mortgage game, you’re in luck. There are a few different loans that have been specially designed to keep things simple and affordable for you. The UMe First-Time Home Buyers Program includes:
- Conventional Home Loans: Despite the boring-sounding name, this is the exceptional private mortgage that UMe offers direct to you, with fixed or adjustable rates and flexible terms to suit every budget.
- FHA Loans: These are backed by the federal government so credit unions like UMe can offer awesome loans to awesome people who may have lower credit scores or patchy credit history. Bonus features include a low down payment and lower closing costs.
- VA Loans: If you’ve served our country, or you’re a military spouse, you may qualify for a VA loan, which comes with all the same bells and whistles as the FHA loan – plus the possibility of a 0% down payment.
There’s a bit of magic involved in rates. We put everything into a pot, stir it three times, then pull out your lucky number! (Actually, your credit score will determine your rate. The higher your score, the lower your rate.)
When it comes to your run of the mill Conventional Home Loan (that is, the ones not insured by the government), you do get to choose your term. The most common options are 15, 20, or 30 years.
A long term means a lower monthly payment but you’ll pay a bunch more in interest. Of course, short terms mean the opposite. You’ll save on interest but your monthly payment might stretch your budget a bit thin.
For FHA loans and VA loans, your choice of terms might depend on your particular financial situation. Just ask us and we’ll guide you in the right direction!
You’ve probably heard you need to put 20% down on a home, right? And it’s true, that used to always be the rule. Nowadays, there are a few more options out there.
- Conventional loan: You can put as little as 5% down as long as you pay a fancy little thing called PMI (private mortgage insurance).
- FHA loan: You can put as little as 3.5% down with something called Upfront Mortgage Insurance (UFMI) and a monthly insurance premium (MIP) – usually rolled into your loan principal or APR.
- VA loan: You might be able to put nothing down! The good old government will pick up the tab for your PMI, though you’ll likely need to pay a VA funding fee.
If you’re wondering what the extra fees are for, they are to offset the costs of insuring the loan in case you can’t make your payments. And, in the case of FHA and VA loans, you’re splitting the bill with U.S. taxpayers (like U!).
That’s a very good question! Closing costs pay everyone who has a hand in your home loan, including:
- Your local friendly lender
- Real estate agents
- Lawyers (if needed!)
- The people who handle titles and other expert admin
- Taxes and fees you have to pay in advance and leave in a cool account called Escrow
- Appraisals, inspections – honestly, the list goes on.
But lucky for you, the FHA limits the amount you need to pay in closing costs so your home loan is more affordable and you can get settled in soon.