Shopping for a home loan for the first time can be confusing. We can help every step of the way.
I was in a bad rental situation and decided it was time to buy a house. I didn’t know how much house I could afford or what my payments would be. I turned to the Credit Union for help. After our meetings and phone conversations, I walked away very satisfied."
Shane L. | Halifax
What are the requirements for a First-Time Homebuyers Loan?
If you've never owned a home or haven't owned a home in the past three years, you are a first-time homebuyer.
Perks of getting your first mortgage here
Your Credit Union gives you step-by-step help whether you come in or call us. Our 5-year Adjustable Rate Mortgage (ARM) with a maximum term of 30 years has competitive rates and requires no private mortgage insurance.
We make financing your home affordable
Financing is available for up to 100% of the purchase price with a maximum loan amount of $400,000. Plus, you may be eligible for up to $2,000 in additional financing to help with closing costs. There are no application fees or credit report fees for you to pay.
Subject to approval. Mortgages are available for properties located in NC, SC, TN, VA and GA. Members must reside in NC or bordering states to be eligible.
Mortgage loan processing costs
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. Those costs include:
- Appraisal fee
- Origination fee
- Attorney fees
- Recording fees
- Title insurance
- Pest inspection (not typically required)
Taxes and insurance are not included in the monthly mortgage payment estimates. Be sure to factor those increased costs into your actual monthly payment. The origination fee is 1% of the loan amount with a cap of $2,500. The initial interest rate for our ARM loans is set by the LGFCU Board of Directors and is subject to change daily.
First-time Homebuyer Program
A separate option for first-time homebuyers is the Federal Home Loan Bank of Atlanta (FHLBA) First-time Homebuyer Program. This provides grants up to $7,500 in the form of a forgivable second mortgage, 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 funds toward the down payment and closing costs. To qualify for this program, your total household income must not exceed 80% of the area median income for the county in which the home is being purchased.
FHLBA grants are only available to first-time homebuyers approved for an LGFCU Adjustable Rate Mortgage (ARM) loan, excluding the First-Time Homebuyers Loan. Grants and loans are subject to approval.
Other incentive programs
You can use the FHLBA Grant Program in combination with the Mortgage Credit Certificate offered through the North Carolina Housing Finance Agency. This certificate works best with members buying a first home because it reduces the tax liability on a home purchase. Consult your tax advisor for additional guidance.