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FTHB Education

 
 

 

 

 

First Time Home Buyer
 


 


DOCUMENT CHECKLIST
Download our list of documents you'll need.


SEND US A MESSAGE
mortgageoriginating@cinfed.com


SPEAK WITH A SPECIALIST
Call us at (513) 333-6337.
 

 

Who is a first time home buyer?
We consider a first time home buyer to be anyone who has never owned a home, or who has not owned a home within the last 3 years.


Am I ready to buy?
It is important to evaluate your current financial situation and long term goals when deciding if you are ready to purchase a home. If you are currently renting, you should consider the additional expenses you may not have had to pay while renting, like trash, water, or sanitation that could push home ownership out of your budget. Alternatively, reallocating the money you spend on rent and and putting it towards a mortgage will ultimately give you an asset, which could be the best fit for your future wants and needs, despite the added costs. Our Rent vs. Buy Calculator is designed to give you an idea of the potential difference in cost you may face with the transition. 


How much money do I need to have?
Typically, the rule of thumb is that your mortgage payment should not exceed 28% of your annual income. However, the amount of money you should spend on your mortgage depends on several additional factors like your credit score, the amount you will need to borrow, and the particular loan product you have. Aside from the money you will need for a down payment, you will also need to consider closing and prepaid costs, home inspections, and furnishings or home repairs later down the road. For qualifying buyers, we offer a down payment as low as 10%.


Where should I start?
Purchasing your first home can be both exciting and overwhelming. We are here to help guide you to a solution that is a healthy balance between your budget and long term home ownership goals. Send us a message to get started. 

 


 

  Common Loan Options

 

CONVENTIONAL LOAN

Generally, there are four loan options for first time home buyers : Conventional, FHA, VA, and USDA. We match all first time home buyers with a Convential Loan. FHA, VA, and USDA loans can offer lower minimum down payments, but they each have specific eligibility requirements that require government approval -- increasing processing time, and often require the purchase of private mortgage insurance (PMI).  

Our conventional loan is a tailored mortgage program that addresses typical first time buyer challenges. We offer a minimum 10% down payment for qualifying applicants and a 7 year ARM that gives you flexibility with your monthly payments.
 

PIGGY BACK LOAN (80/10/10)


For qualifying buyers, we have a unique loan option available described as a "piggy back loan". Structured as two separate loans, a larger loan covers the initial mortgage, or up to 80% of the home's value, and is "piggy backed" by a second, smaller loan, covering 10% of the home's value. The remaining 10% comes from the borrower's down payment. Typically, this loan is used by prospective home buyers to avoid paying private mortgage insurance. You will only be required to pay interest payments on the smaller loan, functioning similarly to a HELOC.

Contact us to learn more about the qualifications to determine if you are eligibile.  

 


WHAT IS A FIXED-RATE MORTGAGE?

A fixed rate mortgage is a financing option that allows borrowers to effectively maintain a long-term budget. With a fixed-rate mortgage, the interest rate on the loan remains the same through the term of the loan, giving borrowers who want relatively consistent payments the ability to take advantage of low rates while they are available. This loan type is popular among borrowers who plan to live in their newly purchased home for more than 5-10 years. 

We offer fixed rate mortgages for loan terms ranging from 5 years to 30 years. The length of the term determines the amount of your monthly payments. With a shorter term loan, like a 5 year or 10 year, you will have less payments than you would with a longer term loan, but the monthly payment amount will be higher because the payback time is condensed. 


WHAT IS AN ADJUSTABLE RATE MORTGAGE (ARM)?

An adjustable rate mortgage is 
a financing option that allows borrowers to take advantage of falling interest rates without having to refinance. With an adjustable rate mortgage, the interest rate on the loan is initially set at a fixed-rate for a certain period of time, and is followed by periodic adjustments to the rate based off the current index value. Often having a lower initial interest rate than a fixed-rate mortgage, an adjustable rate mortgage is ideal for buyers who plan to sell their home after a few years, allowing them to avoid a potentially higher index value after the rate adjusts. 

We currently offer 1-year, 3-1-year, and 5-1-year adjustable rate mortgages. The rates adjust after the term and each year thereafter according to the type of ARM.  



All situations are unique to each homeowner. We will work with you to determine a loan term that is best for your budget and home ownership goals. Let's get started. 

 



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Apply Now
Ready to begin your new journey? Let's get started. 
 


 


Download Sample Documents
Review the documents you'll need throughout the process.
 


‌‌View All Rates & Mortgage Options
Take a look at current rates and additional loan options 
 
 

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GET PREQUALIFIED. 
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CONTACT CINFED

Cinfed Credit Union
4801 Kennedy Avenue
Cincinnati, OH 45209
(513) 333-3800
Routing #242076656

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