Alternatives to Putting 20 Percent Down on a Home

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Real Estate is said to be one of the best long term investments out there. If that’s the case, then why put off getting into a home? For some, it’s because there is a misunderstanding on what is required to buy a home. Below are a four loan types and their down-payment requirements.

Conventional
Many believe that 20% is required for this loan type, however,that isn’t true in most cases. By putting 20% down you won’t have to worry about mortgage insurance, and you would qualify for a lower rate. The minimum down payment required for this type of loan is actually just 5%. As for sourcing the funds, the full 5% down payment must come from the primary borrower.

FHA
This is a government backed loan. The minimum down payment required is 3.5%. Considering the nature of the loan, the down payment affects aspects of this loan less. Either way, you will be required to have mortgage insurance with an FHA loan. What’s the advantage to this loan then? The 3.5% can come as a gift from a relative, offering some flexibility on the savings.

VA
VA loans are done via the Department of Veterans Affairs, and allow veterans of the U.S. Armed Services access to programs other U.S. consumers do not. One such program is the no-money-down VA loan.

With 100% financing and accommodating underwriting standards, VA loans make approvals simple and offer lower rates than a comparable conventional mortgage. Additionally, VA loans require no mortgage insurance no matter how much you put down.

First Time Home Buyer

For those who qualify, there are special loan products that will allow up to 100% financing. Those loan requirements can vary by location, so we recommend getting in touch with your local mortgage loan officer to see if you qualify for 100% financing.

The easiest way to make sure you are getting the best type of loan for your situation is to sit down with one of our Mortgage Experts to help you get the home you want, at a price you can afford. You’re just a phone call away from reaching your dream of home-ownership. Visit your local branch or contact us by email at homeloans@uccu.com or by phone at 801-223-7640.

 

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President's Message April 2016

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We are well into our 60 year celebration and many people are taking advantage of our Cash for You, Cash For Your School initiative. Don’t forget that for every loan you transfer to UCCU we will give you 0.5% cash back, as well as donate 0.5% cash back to the K-12 school of your choice. Tell your friends and neighbors and help support local education.

The Utah housing market is booming. There is significant demand for mortgage and construction services and consumers are continuing to build equity due to rising housing prices. With the growing population rate and the increasing demand for housing, appreciation rates have continued to rise and will likely continue to be favorable.

Trying to help your children get into their first home? It may be easier than you think. UCCU has our first time home buying program that takes the guesswork out of finding the home of your dreams.  UCCU offers support and resources to help you find the right loan product to suit your financial needs. Our BuyerRelax program offers access to mortgage experts who can answer any question – big or small.

It is our pleasure to serve you! We want to be your trusted financial partner now and into the future. Take full advantage of your membership by visiting with one of our financial experts. If you are not yet a member – become one and let the benefits of UCCU membership help you save money, make smart financial decisions, and propel you and your family closer to you financial goals and dreams.

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Jeff Sermon
President/CEO

 

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