Friday, March 2, 2012

New Home Buying Mortgage Program You Should Know About:

Our CU Promise Programs are expanding to now include 100% financing! In the past few years, programs for buying homes have diminished due to changes in regulation along with other risk factors that lenders take into consideration.
There are a lot of homes on the market but just not enough buyers. The economy has hit everyone hard, so the majority of home buyers lack the down payment needed to buy it. Up until now! FHA offers high loan to value financing and requires just a 3.5% down payment plus closing costs, but it comes with fairly high private mortgage insurance* premiums. USDA offers 100% financing for those that qualify but comes with a 2% charge to obtain the 100% financing. VA offers a 100% financing for veterans, but comes with a fee of over 3% of the loan amount.
Ocean Communities FCU is proud to say that we have a new home buying program that offers 100% financing as well. Our CU Promise 100 comes with no add on fees to obtain the 100% financing (of the purchase price) other then the normal private mortgage insurance premiums when financing over 80% of the homes value. Will everyone fit into the program? Well no but it is a great addition to all of the other products available to home buyers that wish to speak with our knowledgeable Mortgage Loan Officers.
If you recall me speaking of CU Promise in the past, our borrowers enjoy this program because the servicing of your mortgage is guaranteed to be serviced in Maine for the life of the loan. A very important feature, especially if you have had a mortgage before, or any type of installment loan or credit card you have tried to call when you had a question that was out of state.
The other CU Promise Programs are made up of: CU Promise 97 which is a 3% down payment program and most importantly our CU Promise 90 which requires 10% down payment of the purchase price but requires no Private Mortgage Insurance coverage. Normally you need to pay 20% down to avoid the need of Private Mortgage Insurance but with CU Promise 90 we just need 10% down.
March is usually the time of year when we start thinking about spring which usually brings out the home shoppers. Please contact one of our Mortgage Loan Officers as soon as possible so we can get you preapproved and ready for when you find the home you want to make that offer on. Call 1-800-418-1486 and allow some time to speak with a Mortgage Loan Officer that will help find the loan program best suited for your needs.
*Private Mortgage Insurance (PMI) – A necessary insurance for mortgages when financing over 80% of the value of a home. It is a 3rd party insurance that will require approval once all loan conditions are in, the appraisal has been complete and the Underwriter has a Title Commitment for the property you choose to buy. PMI will automatically cancel itself after your loan balance reaches 80% of the original value. There may be other ways to cancel out the PMI after a certain amount a years but this ability varies with PMI companies so please ask your Mortgage Loan Officer. As stated earlier our CU Promise 90 loan does not require PMI if 10% is put down.