Shopping for a home loan for the first time can be confusing. We can help every step of the way.
If you’ve never owned a home before or haven’t owned a home in the past three years, a First Time Homebuyer’s Loan is a smart and affordable choice, with step-by-step help, competitive rates and no required private mortgage insurance.
This loan is a 5-year Adjustable Rate Mortgage (ARM) with a maximum term of 30 years. Financing is available for up to 100 percent of the purchase price with a maximum loan amount of $400,000 plus an additional $2,000 in financing for help with closing costs.
Any property you purchase with an LGFCU mortgage must be located in North Carolina, South Carolina, Virginia, Georgia or Tennessee.
Costs or fees may arise during the mortgage loan process. When you apply, your Credit Union loan officer will provide a good faith estimate of all settlement costs involved with the mortgage process, which include the appraisal fee, origination fee, attorney fees, recording fees, title insurance costs, and survey and pest inspection costs (typically not required.)
The origination fee is .75 percent of the loan amount with a cap of $1,500. The initial interest rate for our ARM loans is set by the LGFCU Board of Directors and is subject to change daily.
Homebuyer Grant Programs
As a first time homebuyer you may be eligible for special programs and incentives. The Federal Home Loan Bank of Atlanta’s (FHLBA) First-time Homebuyer Program provides grants in the form of forgivable second mortgages in amounts up to $5,000 to assist members with down payment and closing costs.
To be eligible for the grant funds, you must contribute a minimum of $1,000 of your own money towards the down payment and/or closing costs. The FHLBA provides grant funds at up to four times the amount of funds you contribute up to a maximum of $5,000.
You do not have to repay these funds if you remain in the home for at least five years. To be eligible for this program, your total household income must not exceed 80 percent of the area median income for the county in which the home is being purchased.
This program can also be used in combination with the Mortgage Credit Certificate program offered through the North Carolina Housing Finance Agency.
The FHLBA Grant is only available with this ARM loan. Call us or visit your local branch for additional information and guidelines about this grant.