Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Washington Post Features CUs' No Down Payment Loans
WASHINGTON (5/7/13)--Two federally chartered credit unions bucking the nationwide trend of charging consumers a down payment for mortgage loans are featured in The Washington Post.

During a time of strict underwriting standards, when Fannie Mae and Freddie Mac, the Federal  Housing Administration and many others are requiring minimum down payments to qualify for mortgages, NASA FCU in Upper Marlboro, Md., is offering a zero-down payment loan option to qualified members, according to nationally syndicated real estate columnist Kenneth Harney (The Washington Post May 2). The article also was picked up by BostonHerald.com (May 5) and other media.

The $1.23 billion asset NASA FCU is offering the no-down-payment loans only to qualified members in the Washington, D.C.-area.  However, depending on local housing-market conditions, it may expand the program to other areas, it told the Post.

The maximum amount members can borrow is $650,000, and there are stringent underwriting standards. Preferred FICO scores start in the mid-700s, and seller concessions--contributions by home sellers to defray buyers' closing costs--are capped at 3%.

There have been zero delinquencies and zero foreclosures during the past year and-a-half, Bill White, NASA FCU vice president for real estate lending, told Harney.

Also, Navy FCU in Vienna, Va., with $52.4 billion in assets, offers a zero-down-payment option and no required mortgage insurance for qualified home buyers nationwide, the article said.

It allows seller concessions up to 6%, with a maximum loan amount of $1 million. The program is mostly aimed at first-time home buyers who often lack a sufficient down payment, but are otherwise creditworthy, Harney said.

To read the article, use the link.
RSS





print
News Now LiveWire
Maine credit unions put Food Mobile on the road to relieving hunger in rural areas http://t.co/R0xpt6BAZE
15 hours ago
.@TheNCUA's Matz: PALS should be exempt from Military Lending Act proposal #NewsNow http://t.co/Vy9uNhOIEr
15 hours ago
#NewsNow Iowa loan growth 3 times national bank rate http://t.co/fUvudPLg5d
18 hours ago
.@ICBA tallies its Home Depot data breach costs: $90M, 7.5M cards http://t.co/iJgRDC2AKZ
19 hours ago
.@icul's Jury elected treasurer of @WOCCU exec committee http://t.co/HEF1UChN8f
20 hours ago