Effective Date: May 24, 2023
Apply Now
Term
|
Rate "As Low As"
|
APR* "As Low As"
|
Example Loan Amount
|
Example Monthly Payment
|
10 Years |
6.500% |
6.725% |
$200,000 |
$2,270.96 |
15 Years |
6.625% |
6.785% |
$200,000 |
$1,755.99 |
20 Years |
7.375% |
7.507% |
$200,000 |
$1,595.93 |
30 Years |
7.375% |
7.477% |
$200,000 |
$1,381.35 |
Rates based on creditworthiness.
100% FINANCING: Certain restrictions apply. Available on select single-family purchase home loans; not available on refinance. Must be primary residence. 100% financing of verified property value at time of financing. Subject to program creditworthiness criteria, credit approval, verification, and collateral evaluation. At loan closing, borrower responsible for funds to cover prepaid reserves and closing costs such as inspections, appraisals, title insurance, etc. Gift funds not permitted. Private mortgage insurance required.
Mortgage Pre-approval
To streamline the process, you can request a
mortgage pre-approval, which will allow you to house hunt within your budget, saving you time and frustration. Plus, you can assure sellers that you’ve been pre-approved for the necessary dollar amount.
When you get pre-approved, it’s a step beyond a pre-qualification—and it’s an important step. Before a lender provides you with a pre-approval amount, they’ll check your credit scores, which lets you know more specifically what you’re well positioned to buy.
If you’re ready to apply for a
pre-approval at SCCU, you’ll just need to have a few pieces of information at hand. They include the following:
✔ Identification, which can include your driver’s license/passport
✔ Two recent pay stubs/W-2s/tax returns
✔ Last two bank statements
Conventional lenders will have different loan requirements. At SCCU, our guidelines include these:
- Credit score of 620 or above
- Record of making your payments on time
- Good debt-to-income (DTI) ratio (45% or lower)
Consider calculating your own DTI to get a sense of where you stand. Here are the steps:
- Add up the amounts of your monthly debt payments.
- These can include your mortgage/rent, car payments, personal loan payments, credits cards, student loans, and so forth.
- Determine your monthly income—pre-tax (your gross income).
- Divide the total monthly debt amount by your monthly income.
- The result is a percentage.
- If you know what percentage your lender requires (it may be something like 36%), then you’ll have a sense of your financial picture.
You’ll also need to know how the monthly payment on your new home will affect your DTI. Here’s a quick and easy way to
estimate your principal and interest payment.
A Note about First-Time Homebuyers
First-time homebuyers may gravitate towards no-money-down home loans because they can’t use the equity built up in their current home to make a down payment. Fortunately, the state of Florida offers plenty of programs to help first-time homebuyers.
FHA Loans
With FHA loans, down payments can be as small at 3.5%, allowing qualified borrowers to finance up to 96.5%
16. Although that isn’t the same as a no-money-down mortgage, it’s still much more doable than saving up 20%.
This type of loan is offered by certain FHA-approved lenders, including
SCCU, with the
Federal Housing Administration backing lenders when borrowers default. In fact, the FHA is the largest mortgage insurer in the world with nearly eight million single-family homes having an FHA mortgage. Said another way, the FHA insures loans but doesn’t directly lend the funds. So, to investigate getting an FHA loan, see a qualified lender, such as SCCU.
Certain types of properties won’t qualify for an FHA loan, such as the following:
- An investment where you plan to rent the home to someone else; it must be owner occupied
- A home you plan to “flip”; so, you can’t buy a home through FHA lending within three months of a previous sale
This property MUST:
- Be the main residence of at least one borrower within 60 days of the FHA loan’s closing
- Have your name on the property title
- Meet property standards, verified by an FHA appraiser during the home inspection
Finally, the property can be a multi-unit one as long as one or more borrowers live in one of the units.
FHA loans can be made to buyers across the range of incomes, from low to high, as long as the borrowers have enough steady income to afford the loan. Just as with conventional mortgage loans, FHA loans require a certain DTI with current requirements being at 50% or less. Just like with conventional mortgage loans, individual lenders can have different requirements, so check with your lender of choice and compare options.
Additional issues to consider with FHA loans include these:
- How much you can borrow, max, on an FHA loan varies by county based on the home prices in your area; limits can change annually with recent ones being:
- $314,000 in lower-cost counties
- $726,000 in counties where homes are more expensive
- Credit scores typically need to be at least 500 with a score of at 580 usually needed to qualify for the lowest down payment. In general, the better your credit score, the lower the FHA requirement for your down payment would be.
- The home must be appraised and inspected, with the property meeting minimum FHA standards for structural soundness. FHA inspectors can be stringent in what they require; so homes that need significant repairs might not qualify for FHA financing.
- Borrowers must pay an upfront mortgage insurance premium at all once in cash at closing time or have it financed into the loan amount. It’s a one-time payment that is 1.75% of the base loan amount and is non-refundable.
- Borrowers who have recently filed for bankruptcy or foreclosure won’t qualify. There is a two-year waiting period after bankruptcy and three years after a foreclosure. Borrowers may not qualify if delinquent on federal taxes or other debts.
FHA loans at SCCU come with down payments as low as 3.5%
16, with gifts and alternate funds being acceptable. Borrowers can qualify with lower credit scores, and SCCU offers more relaxed DTI ratios. Terms are available for up to 30 years with a $1,100 origination fee and no application fees, pre-payment penalties, or intangible taxes
21.
Learn more about Florida FHA loan requirements here.
Effective Date: May 24, 2023
Apply Now
Term
|
Rate "As Low As"
|
APR* "As Low As"
|
Example Loan Amount
|
Example Monthly Payment
|
15 Years |
6.250% |
6.408% |
$200,000 |
$1,714.85 |
30 Years |
6.750% |
6.848% |
$200,000 |
$1,297.20 |
HOME LOANS: Rates based on creditworthiness. Mortgage loans are originated by Space Coast Credit Union and are subject to credit approval, verification, and collateral evaluation. Programs, offers, rates, terms, and conditions are subject to change or cancellation without notice. Certain restrictions apply. Taxes and insurance not included; your actual payment obligation will be higher.
These mortgage loan programs constitute first mortgage liens secured by the home and property. Your down payment is determined by the Loan-to-Value ratio. (90% LTV = 10% down payment). Loans exceeding 80% of the appraised value of the home require private mortgage insurance. Member responsible for any funds needed for closing costs and pre-paid escrow.
VA Home Loans
The Department of Veterans Affairs guarantees mortgage loans for qualified buyers, making this program available to United States veterans, active duty service members, and widowed military spouses. Similar to FHA loans, the VA does not directly provide funding but backs the borrowers to provide lenders protection against default. Instead, qualified borrowers can get mortgage loans from participating lenders, including SCCU.
To qualify for VA home loans, the borrower must meet at least one of these conditions:
- 90 consecutive days of active service during wartime or 181 days of active service during peacetime
- More than six years of National Guard or Reserves service
- Spouse of a service member who passed away in the line of duty or because of a service-related disability
VA home loans are typically no-money-down home loans because no down payment is required when the sales price isn’t greater than the home’s appraised value. So, buying a house with no money down can be quite doable.
Benefits of VA home loans are numerous, and for people who qualify, it’s probably the best way to finance your house.
Besides being a no-money-down mortgage, these loans:
- Typically have lower interest rates
- Can come with higher DTI ratios
- Don’t require Private Mortgage Insurance (PMI)
- Come with more relaxed credit score requirements; usually a 620 FICO® score is required but, at SCCU, all eligible homebuyers can get the same favorable interest rates no matter the score
- Can be assumable if the other party qualifies
- Don’t have pre-payment penalties
Some closing costs, such as attorney fees and settlement charges—are prohibited. Plus, although first-time homebuyers can qualify, the property doesn’t have to be the borrower’s first house. Once a VA mortgage has been paid off, the eligible service member (or family member) can reuse the VA home loan benefit.
Not all lenders are VA approved. At SCCU, we truly value our service members, starting out as a credit union serving Patrick Air Force Base. So, with our VA home loans, we offer competitive rates and up to 100% loan to value (meaning, no down payment)
16. Terms are up to 30 years with a $1,100 origination fee and no application fee, pre-payment penalty, or intangible tax
18.
In addition to VA loans, SCCU offers an
affordable housing program to help cover your down payment and closing costs. We also have other low-cost home loan options for community heroes. Learn more about our
Home Hero Loan options here.
Effective Date: May 24, 2023
Apply Now
Term
|
Rate "As Low As"
|
APR* "As Low As"
|
Example Loan Amount
|
Example Monthly Payment
|
15 Years |
6.250% |
6.408% |
$200,000 |
$1,714.85 |
30 Years |
6.750% |
6.848% |
$200,000 |
$1,297.20 |
Rates based on creditworthiness. VA Home Loans are available to eligible service members, veterans and surviving spouses. Up to 100% financing is available. At closing, member will be responsible for any closing costs, prepaid escrow reserves, and any optional discount points.
HOME LOANS: Mortgage loans are originated by Space Coast Credit Union and are subject to credit approval, verification and collateral evaluation. Programs, offers, rates, terms, and conditions are subject to change or cancellation without notice. Certain restrictions apply. Taxes and insurance not included; your actual payment obligation will be higher.
These mortgage loan programs constitute first mortgage liens secured by the home and property. Your down payment is determined by the Loan-to-Value ratio. (90% LTV = 10% down payment) Loans exceeding 80% of the appraised value of the home require private mortgage insurance. Member responsible for any funds needed for closing costs and pre-paid escrow.
Apply for Your No (or Low) Down Payment Loan
Whether you’re interested in a conventional loan, an FHA loan, or a VA loan, we look forward to serving you! You can
compare mortgage loans at SCCU here. If you have any questions, feel free to
request more info,
schedule an appointment at one of our 65 convenient branches, or
get in touch with us.