Despite the changes in the market, including increased home values and higher interest rates, the dream of homeownership is still alive, according to Mountain America Credit Union.
We invited Kara Loftus, Vice President of Mortgage Lending at Mountain America Credit Union, to help us understand the different types of loans available that can make homeownership within reach for all of us.
She says there are several loan programs available that require little or zero down, which is one of the most significant barriers to homeownership.
On the federal level you can look for a loan from the FHA or Federal Housing Administration. This kind of loan only requires 3.5% down when you have a FICO credit score higher than 580.
Another type of loan available to military service members who meet specific criteria is a Veterans Affairs (VA) loan. A VA loan can come with financing up to 100% loan-to-value .
A USDA loan may be an option if you're hoping to own a home in a rural area. USDA loans require no money down and often have lenient credit score requirements.
Finally, Mountain America Credit Union has a first-time homebuyer loan [ with as little as $1,000 down and 100% loan-to-value financing on approved credit.
Another common barrier to owning a home is simply being able to afford a monthly mortgage payment, but it's tricky because renting is expensive, too.
Kara says there are loans available that can make homeownership a reality.
Mountain America offers several home loan options, starting with the 40/15 balloon mortgage. This loan allows first-time homebuyers to pay less each month—as it's spread over 40 years instead of the typical 30.
But instead of being locked into that mortgage for 40 years, you can pay off the entire balance at year 15 or refinance into a new loan once you've built equity.
For this type of loan you aren't required to have a down payment, and you don't need to worry about a penalty should you refinance your home or sell it before the 15-year term ends.
You do have to meet specific requirements, though. For example, you must qualify with a minimum 660 credit score and two years of work history.
Mountain America Credit Union believes every hero in the community deserves a home, so they have other benefits lik 100% loan-to-value financing, competitive rates, and other discounts for first responders, K-12 teachers, and medical professionals.
Kara suggests meeting with a mortgage loan officer to get more information on the different loan programs you may qualify for.
You can also learn more about Mountain America's home loans and schedule an appointment at macu.com/mortgage.
Loans on approved credit. Membership required–based on eligibility.
Equal Housing Lender NMLS ID 462815
To obtain additional cost information, please call 1-800-277-7703.
