Mortgage Loan Options | Mortgage | United Federal Credit Union

mortgage loan options

Conventional Loan

Standard home mortgage loan.

options & eligible for

FRM
3/1 ARM
5/1 ARM
7/1 ARM
Primary Residence
Second Home
Investment Property

ideal for

Members who have a variety of credit characteristics allowing for competitive solutions to purchase or refinance a home.

0% Down4 No PMI Loan

options & eligible for

FRM
3/1 ARM
5/1 ARM
7/1 ARM
Primary Residence
0% Down Payment4
no PMI

ideal for

Members who have good credit but don’t have the liquidity to pay a down payment and would like to avoid paying PMI in exchange for a slightly higher interest rate.

0% Down Loan4

options & eligible for

FRM
3/1 ARM
5/1 ARM
7/1 ARM
Primary Residence
Non-conforming
0% Down Payment4

ideal for

Members who don’t have a lot of equity in a home they currently own or don’t have a lot of funds available for a down payment to purchase a home.

HomeReady® Loan

options & eligible for

FRM
3/1 ARM
5/1 ARM
7/1 ARM
Primary Residence
As Low As 3% Down Payment4
Reduced MI Coverage

ideal for

Members who are first time or repeat home buyers who are looking for flexible funding options to put towards their down payment and closing costs with no personal funds required. With reduced mortgage insurance required, this loan comes with additional affordable mortgage insurance options.

Medical Professionals Loan

options & eligible for

FRM
3/1 ARM
5/1 ARM
7/1 ARM
Primary Residence
No PMI
0% Down Payment4
Student Debt Not Included in DTI

ideal for

Members with the following licensed credentials are eligible for this loan are Physicians with MD, DO, and DPM; as well as titles Dentist, Chiropractor, Veterinarian, Physician’s Assistant, Nurse Practitioner, and Nurse Anesthetist.

If you are in the field of medicine, but don’t see your title listed here, contact us for customized loan options to help serve your needs.

Construction Loan

options & eligible for

FRM
5/1 ARM
7/1 ARM
Primary Residence
Second Home
95% LTV

ideal for

Members financing the construction of their house. This loan can be used to purchase the lot from a builder with the intention of building right away, in conjunction with a lot loan, or if you intend to build on a lot that you already own.

Lot Loan

options & eligible for

FRM
20% down5
10-year Term
3/1 balloon
5/1 balloon

ideal for

Members who want to purchase a lot intended for a residential build, but don’t plan on building for several years. Choose from a variety of terms to fit your financial goals.

Investment Property Balloon Loan

options & eligible for

FRM
Investment Property
Non-conforming

ideal for

United finances investment properties for up to 15 years. The 15/30 balloon product is great for members who want to finance an investment property and experience the benefit of a smaller payment comparable to a 30 year loan payment.6

Jumbo Loan

options & eligible for

FRM
ARM
Primary Residence
Second Home
Non-conforming

ideal for

Members who are financing a purchase or a refinance for an amount exceeding the conforming limit of $647,200 established by the Federal Housing Finance Agency (FHFA).

FHA

Insured by the Federal Housing Administration.

options & eligible for

FRM
ARM
Primary Residence
Specialty Loan
As Low As 3.5% Down Payment4
MI Lasts Full Term of Loan

ideal for

Members who are first-time home buyers or have little savings and credit challenges.

Rural Development

Insured by the Dept. of Agriculture.

options & eligible for

FRM
Primary Residence
New Construction
Specialty Loan
0% Down Payment4
No Max. Purchase Price
30-year Term1

ideal for

Members who demonstrate an economic need and are interested in purchasing a home in a rural area as defined by the USDA’s eligibility requirements.

VA

Backed by the Dept. of Veterans Affairs.

options & eligible for

FRM
ARM
Primary Residence
Specialty Loan
0% Down Payment4
No MI

ideal for

Members who are actively serving in the military, Veterans and spouses of service members who have deceased in the line of duty.

Talk to Us

There are many options for mortgages. The possibilities are endless!

Not sure which one to go with, or can’t find one that fits your needs? Don’t worry! Talk with one of our mortgage advisors today and we’ll help you find the perfect fit for your needs.

Find a Mortgage Advisor

Table Glossary

An adjustable mortgage has an initial interest rate that is fixed for a specific period of time, followed by an adjustable interest rate that can increase or decrease over the remaining life of the loan, based on certain market conditions. United offers two adjustable-rate mortgages (ARM)

5/1 ARM: The first 5 five years are a fixed interest rate. Afterwards, the rate is adjusted once a year.
7/1 ARM: The first 7 seven years are a fixed interest rate. Afterwards, the rate is adjusted once a year.

This is a good choice if you plan to move before the end of the introductory fixed-rate period, want an initial monthly payment lower than a fixed-rate mortgage usually offers, or think interest rates may go down in the future.

Conventional financing are mortgage loans that are not backed or insured by the government. Of conventional loans, they can be either conforming or non-conforming.

Conforming is a loan that abides by Fannie Mae and Freddie Mac guidelines, two government-sponsored enterprises. Non-conforming, likewise, is a loan that does not abide by Fannie Mae and Freddie Mac guidelines.

A down payment is an initial up-front partial payment for the purchase of the property. It is money that you physically have at your disposal, it is not borrowed.

DTI stands for debt-to-income ratio. To calculate, add up all your monthly debt payments and divide them by your gross monthly income.

A fixed-rate mortgage is a fully amortizing mortgage loan where the interest rate remains the same for the life of the loan. In other words, your total monthly payment of principal and interest will remain the same over time. This is a good choice if you think interest rates could rise in the next few years, plan to stay in your home for many years, or prefer the stability of a fixed monthly payment.

Investment property is generally property that you, personally, do not live. This is for property you intend to use to generate income by renting, appreciating value, or other means.

LTV stands for loan-to-value ratio. It is the term to represent the ratio of the mortgage loan as a percentage of the total appraised value of the real property.

Property that will be your main home in which you live most the year, receive mail, and is reasonably close to where you work.

(P)MI stands for (private) mortgage insurance. Mortgage insurance is typically required if you are borrowing a large percentage, usually over 80%, of the property’s value. With United, you can potentially get 100% financing with no PMI.1

A home you live in for some part of the year. Unlike a primary residence, you do not have to live there for most of the year or be close to your work. A second home is intended for personal use.

Specialty financing are loans offered or secured by a government entity.

refi

‘Re-do’ with a refi from United.

Simply put, a refi will give you a chance to replace your current mortgage with a new one based on the current market and your current finances. With today’s low market rates, now could be a good time to consider a refi.

the best time to refi

interest rates are at least 1% lower than your current mortgage
your credit profile has improved
you need funds to deal with a financial emergency, finance a large purchase, or consolidate debt
you plan to stay living in your current home long enough to recoup the costs of refinancing

Apply Online

The best time to refi may be when

the benefits of refi

lower your monthly mortgage payment
pay off your mortgage faster with a shorter term
allow you to switch from an adjustable-rate to a fixed-rate, or vice-versa
obtain a lower interest rate
provide cash for paying debt and home improvements
get rid of PMI if you have more than 20% equity in your home
obtain 100% financing with no PMI