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Many of SLFCU’s branch lobbies have re-opened for member service with additional safety precautions. Kirtland and Livermore East remain closed. Learn more. To read more about how COVID-19 is affecting SLFCU, click here.

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New Fixed Rate Mortgages with Low Down Payments4/26/2017

You Don't Need a 20% Down Payment

It’s a common misperception that lenders require a down payment of at least 20% of the price of the home.

SLFCU offers loan programs with down payments as low as 5% in most markets and with a good credit history; in some cases, a 10% down payment is required. Qualified first-time home buyers have the option of putting down as little as 3% when they have adjustable rate mortgages.

SLFCU can lend 80% on a fixed rate mortgage and finance the rest (up to 15%) with an adjustable rate second mortgage. Home buyers looking for lower closing costs and a down payment of less than 20% can apply for first and second adjustable rate mortgages. By pairing first and second mortgages, you avoid paying private mortgage insurance (PMI).

Some simple savings strategies can help you reach your goal of owning a home much sooner than you might imagine.

OPEN A SAVINGS ACCOUNT FOR YOUR DOWN PAYMENT 

Open a dedicated account for your down payment savings so you have a clear picture of how close you are to your goal. To set up an additional savings account in online banking, click the Applications widget. It’s also a good idea to give the account a nickname. You’ll be less tempted to spend the money in your “Down Payment” account than a “Savings 2” account. Log in to online banking, select Settings from the drop-down menu in the upper right, then choose Settings and Accounts. Click the Edit button to rename your account.

AUTOMATE YOUR SAVING 

Have paychecks automatically deposited into your savings account. You can set up a recurring transfer to have money shifted from your checking account into your savings account every week or month. Or you can have your direct deposit automatically split between your checking and savings accounts. To set up a recurring transfer, log in to online banking and click the Transfers widget. To have your direct deposit split between multiple accounts, click the Direct Deposits widget.

USE GIFTS FOR YOUR DOWN PAYMENT 

Some home buyers receive part of their down payment as a gift from a family member. SLFCU accepts gifted money as a part of a down payment.

TALK TO US, NO MATTER WHERE YOU ARE IN THE PROCESS 

We encourage all potential home buyers to meet with a loan officer to discuss questions and concerns and to learn about SLFCU’s home loans. Contact us at 505.237.7161 or 800.947.5328 x7161, or send an email to mortgages@slfcu.org to talk to a loan officer or for help with setting up recurring transfers or direct deposit.



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