FIRST MORTGAGE LOAN

University Federal Credit Union offers mortgages with competitive rates
and
local service to help you finance your new home. 

APPLY for a first mortgage loan


What is a First Mortgage Loan?

Not to be confused with a first-time home buyer loan, a first mortgage loan is simply the first or primary loan taken out to pay for a property. This means the first mortgage has priority over any other liens or claims in the case of a default. The biggest difference between a first mortgage loan and a first-time home buyer loan is a first mortgage does not need to be the loan for a borrower’s first home, but is simply the original mortgage taken on any property.

If you’re purchasing a home for the first time, you may benefit from other perks the first-time home buyer loan has to offer. However, if you have already purchased a home in the past and are ready to upgrade to a new one, the first mortgage loan is a great option. 

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Buying a new home is a big step–and an exciting one. If you’re purchasing a new home, you probably have many questions about whether to buy, what you can afford, and which type of mortgage to choose. Contact one of our mortgage specialists to help you complete the process!

 

Learn more about first time home buyer loans


First Mortgage Options

Buying a new home is a big step—and an exciting one. If you’re a first-time home buyer, you’ll have many questions about whether to buy, what you can afford, which type of mortgage to choose, and more.  We can help assist you in every step of the journey to owning a new home. To get started, apply for pre-approval, then contact one of our mortgage specialists to help you complete the process.

First-time homebuyer loan details

  • Loan amounts up to $300,000 or higher based on home location
  • Seller can contribute up to 3% toward closing costs
  • No prepayment penalties

Get the loan you need for your dream home

  • Terms from 10 to 30 years
  • Borrow up to 95% of the value of your home
  • Competitive Rates

aPply for loan

UFCU first homebuyer program benefits

  • Up to 100% loan-to-value financing*
  • Down payments as little as $1,000
  • Fixed- and adjustable-rate options
  • No income limitations

MLS Home Search

Your dream home is waiting for you. Using our online MLS home finder, you can search through thousands of homes for sale in your area. 

SEARCH FOR HOMES


Frequently asked questions of first-time homebuyers


Who is considered a first-time homebuyer?

A first-time homebuyer is anyone who hasn’t owned a primary residence for three years or more.


How do you qualify for a first-time homebuyer loan?

Most first-time homebuyers can qualify a first-time home buyer loan with a 660 credit score and a $1,000 down payment. Lenders will also look at your debt-to-income. Members with a score between 660-679 can have a max DTI of 41% and credit scores above 680 can have a max DTI of 43%.


How do you apply for a first-time homebuyer loan?

To apply for a first-time homebuyer loan, you will want to first get pre approved by a lender. The lender will check your credit history and then will need to verify your income and assets. You’ll need to provide the following for financial verification:

  • Recent pay stubs
  • Most recent W-2 form
  • Last two years of tax returns
  • Bank statement
  • Proof of down payment

Additional items may be required depending on an individual’s unique situation.


What are the benefits of a first-time homebuyer loan?

First-time home buyer loans have many advantages, such as access to federally-backed loans, state programs, tax breaks, and lower down payments.


How much can first-time home buyers afford?

Shop for homes that have a purchase price equal to 2.5x your salary or household income. Other experts suggest people should be able to afford up to 28% of their gross income.


Which loan is best for first-time homebuyers?

FHA loans are a great option for first-time homebuyers as they offer low upfront costs and are more flexible with credit requirements. FHA loans also offer smaller down payment options.


Have questions or need assistance?

Contact a UFCU mortgage specialist today!


Loans subject to credit approval. See current rates and terms. Mortgage financing will require a minimum of a 3% down payment. For example a $100,000 loan approved at 97% of value would require a down payment of $3,000. The minimum payment for a $97,000 loan with a 3.875% APR and 30-year term is $456.13.  This payment example does not include taxes and insurance.  Your actual payment may be higher.  The monthly obligation will be determined by the total loan amount at the time of closing and the term and interest rate of the loan.  See our Loan Calculators for specific examples.