WASHINGTON (5/7/13)--Two federally chartered credit unions bucking the nationwide trend of charging consumers a down payment for mortgage loans are featured in The Washington Post.
During a time of strict underwriting standards, when Fannie Mae and Freddie Mac, the Federal Housing Administration and many others are requiring minimum down payments to qualify for mortgages, NASA FCU in Upper Marlboro, Md., is offering a zero-down payment loan option to qualified members, according to nationally syndicated real estate columnist Kenneth Harney (The Washington Post May 2). The article also was picked up by BostonHerald.com (May 5) and other media.
The $1.23 billion asset NASA FCU is offering the no-down-payment loans only to qualified members in the Washington, D.C.-area. However, depending on local housing-market conditions, it may expand the program to other areas, it told the Post.
The maximum amount members can borrow is $650,000, and there are stringent underwriting standards. Preferred FICO scores start in the mid-700s, and seller concessions--contributions by home sellers to defray buyers' closing costs--are capped at 3%.
There have been zero delinquencies and zero foreclosures during the past year and-a-half, Bill White, NASA FCU vice president for real estate lending, told Harney.
Also, Navy FCU in Vienna, Va., with $52.4 billion in assets, offers a zero-down-payment option and no required mortgage insurance for qualified home buyers nationwide, the article said.
It allows seller concessions up to 6%, with a maximum loan amount of $1 million. The program is mostly aimed at first-time home buyers who often lack a sufficient down payment, but are otherwise creditworthy, Harney said.
To read the article, use the link.