RALEIGH, N.C. (5/16/13)--State Employees' CU's (SECU) First-Time Homebuyer's (FTHB) Mortgage Loan program has reached $1 billion in loan balances.
Since its inception 24 years ago, the program has helped more than 8,300 credit union members achieve homeownership, the Raleigh, N.C.-based credit union said.
"Our goal as a financial cooperative is to offer safe and affordable loan options to best serve the overall needs of our membership," said Spencer Scarboro, SECU senior vice president of loan originations. "SECU's achievement of serving 8,300 members with $1 billion in loan balances while incurring minimal losses is true evidence of the program's viability and success."
Unlike conventional mortgage loan requirements, SECU's program helps qualified members to borrow up to 100% of the purchase price for a primary residence.
The average loan amount under the FTHB program is about $180,000. The program is available with SECU's two-year and five-year adjustable-rate mortgage products for a term of up to 30 years. Competitive interest rates and low settlement costs, along with no origination or credit report fees and no private mortgage insurance requirement provide significant savings for first time borrowers, said SECU.
SECU's program has incurred minimal losses, Scarboro said. Even after the great recession, with unemployment around 9% in North Carolina, net charge-offs in the FTHB program over the past 12 months averaged just 0.29%, with 60-day delinquencies below 2%.