Purchase or Refinance Real Estate
Are you purchasing a home, refinancing to lower your rate or taking cash out, purchasing a second or investment property, check OUT KTCCU's mortgage program first.
Any credit union loan officer, can assist you in obtaining a mortgage loan that is tailored for you. The credit union has made the application process fast and simple. With a short phone call, you can be pre-approved and ready to shop for your new home. The credit union offers low interest rates, minimal closing costs, and an option to have your mortgage loan serviced by the credit union. Tell your realtor that you will be using KTCCU to finance your new home.
Click the icon to obtain information about our rates, apply for a loan online, track the status of your loan, and obtain information about our mortgage products.
TYPES OF MORTGAGE LOANS
FHA Mortgage Loans
An FHA loan is a mortgage insured by the Federal Housing Administration. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan.
Minimum credit scores for FHA loans depend on the type of loan the borrower needs. To get a mortgage with a down payment as low as 3.5%, the borrower needs a credit score of 580 or higher. Those with credit scores between 500 and 579 must make down payments of at least 10%. People with credit scores under 500 generally are ineligible for FHA loans.
Because the FHA is not a lender, but rather an insurer, borrowers need to get their loan through an FHA-approved lender (as opposed to directly from the FHA). Not all FHA-approved lenders offer the same interest rate and costs -- even on the same FHA loan.
Two mortgage insurance premiums are required on all FHA loans.
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USDA Mortgage Loans
This United States Department of Agriculture program assists low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
A number of factors are considered when determining an applicant’s eligibility for Single Family Direct Home Loans. At a minimum, applicants interested in obtaining a direct loan must have an adjusted income that is at or below the applicable low-income limit for the area where they wish to buy a house and they must demonstrate a willingness and ability to repay debt.
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VA Mortgage Loans
Veterans Administration helps Service members, Veterans, and eligible surviving spouses become homeowners. VA provides a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.
VA-guaranteed loans are available for homes for your occupancy or a spouse and/or dependent (for active duty service members). To be eligible, you must have satisfactory credit, sufficient income to meet the expected monthly obligations, and a valid Certificate of Eligibility.
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Conventional Mortgage Loans
Conventional mortgage loans, although not insured by the federal government, must adhere to the mortgage guidelines set by the Federal National Mortgage Association, also known Fannie Mae and the Federal Home Loan Mortgage Corporation, often referred to as Freddie Mac. Unlike federally insured loans, conventional loans carry no guarantees for the lender in the event the borrower defaults.
Most conventional mortgages require you to repay the full loan amount at a fixed interest rate over a 30-year period. Shorter repayment periods through 15-year mortgages are also available. You may also opt for an adjustable-rate mortgage in which the interest rate is not fixed, but rather tied to the current market rate. A borrower with an adjustable-rate mortgage can expect his interest rate to fluctuate periodically.
If you have good credit, a steady income and can afford the down payment, conventional loans often offer lower interest rates than their government-insured counterparts. Lenders can often process conventional mortgages more quickly than government-insured mortgages. Also, the higher down payment requirement of conventional loans helps you build equity more quickly.
Home Equity Line of Credit
A Home Equity Loan from the KTCCU offers you an alternative way to fund anything you desire (i.e. cars, boats, vacations, home improvement, education), by using the equity in your home. Borrow up to 90% of the equity of your home.
No appraisal is required, with minimal closing costs. Upon approval, a line of credit is established. You can then access the line of credit over and over again when you need it.