If your down payment is less than 20%, you’ll need to pay Private Mortgage Insurance (PMI). This is added to your monthly mortgage until you reach 20% equity. Don't get caught by surprise on this, reach out to discuss your options.
Federal Housing Administration (FHA) loans are designed to help buyers who don’t fit the traditional mortgage mold get on the property ladder. FHAs offer lower down payments, more flexible credit requirements, and a clearer path to getting into a home, and starting to build long-term wealth.
FHAs are great for:
Not flush with cash? Who is! Buy a home with as little as 3.5% down.
You may still qualify regardless of a few bumps on your credit record.
Enjoy competitive, stable, predictable rates, even if your credit history's a little imperfect.
Come in and talk with a member of your Somerville’s team. We’ll go through your finances with you and give you an estimate of how much you can borrow. You may even need confirmation of this pre-approval to arrange viewings.
Your real estate agent is going to be your best friend on your house hunt. Find someone you trust, who clearly has your best interests in mind. You can actually request they contractually agree to place your interests ahead of the sellers (bizarre, huh?).
Once you’ve found the one, work with your real estate agent to draft an offer. You’ll think through any clauses you want, any concerns you have, and you’ll put in a formal offer. Fingers crossed!
Once your offer is accepted, we’ll get to work finalizing your mortgage. This is where we’ll lock in a rate, and you’ll lock down those sweet new digs.
At your “Closing” you’ll laugh, you’ll cry, oh, and you’ll sign the final paperwork and pick up the keys. Then it’s all paint chips and furniture from here on out.
Buying your first home can feel like a daunting prospect. We're here to help make it easier, every step of the way. Before going any further, make sure you're exploring all mortgage options, and understanding what a mortgage could mean for your personal budget.
You're about to make the largest, scariest, most exciting purchase you ever will. Take the time to find a budget that works for you.
There's no one-house-fits-all, why should mortgages be any different? Discover the pros and cons of our different mortgage options.
Get an idea of what your potential monthly mortgage payments could be depending on your mortgage type and terms.
FHA loans are a great way to get into a home if you have less-than-perfect credit, but they aren’t your only option. At Somerville’s Credit Union, we’ll always look at the whole picture, not just your credit file. Check out our first-time homebuyer options and reach out to discuss which one best meets your needs.
