First Time Home Buyers | Trusted Advice | Redstone Federal Credit Union

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First Time Home Buyer

You can rely on Redstone to guide you through every step of the home-buying process, from getting pre-approved to planning your move.

We’ve helped thousands of people just like you realize their dreams of homeownership, and we understand the challenges and joys that come with buying a home for the first time.

First Time Home Buyers

Borrow up to

$225,000

Finance up to

105%

of purchase price or appraised value,whichever is less.*

This program requires no Private Mortgage Insurance.

Features a variety of fixed and variable rate terms.

Offers flexibility for members with non-traditional or less- than-perfect credit.

Borrow up to

$453,100

Buying in TN? Some counties are eligible for higher loan limits. Click here for more details

Finance up to

97%

of purchase price or appraised value, whichever is less.

This program features a lower rate than other first-time home buyer programs.

Requires Private Mortgage Insurance.

Offers convenient, fixed and variable rate options.

Ready to apply for First Time Home Buyer Loan? It’s easy! 

Featured Rates:

Did you know? You may qualify as a first-time home buyer even if you’ve owned a home in the past. Click here for more details.

 

Down Payment Assistance Programs

Need help with your down payment? Down payment assistance is available to veterans, first-time home buyers, and select community partners.

FreddieMac Credit Smart® Financial Educational Curriculum

Considering homeownership for the first time or currently own a home and need information on how to avoid foreclosure? This interactive educational curriculum – available in English and Spanish – will teach you how to achieve your financial and homeownership goals.  Click here to get started.

Pre-Purchase Financial Counseling

The first year of homeownership is often the most challenging. That’s why Redstone Federal Credit Union® has partnered with BALANCE1 to offer free financial counseling. Our Pre-Purchase Counseling Program will help you prepare for the added expenses and responsibilities of owning a home, so you know what to expect and where to turn for help. From setting a realistic household budget and reviewing credit reports to explaining the home-ownership process and lending requirements, our counselors can help guide the way.To speak with a counselor, call toll-free 888-456-2227. Monday–Thursday 5 AM–8 PM, Friday 5 AM–5 PM, Saturday 8 AM–5 PM (Pacific Time)



Why choose Redstone for your Home Loan?

Competitive rates and closing costs

When you choose Redstone, you get great rates, flexible terms, and low closing costs.

Team of experts

Our Mortgage Team has years of experience and knows the real estate industry inside and out.

Local servicing

From monthly payments to escrow and insurance, Redstone services nearly every mortgage we make.

First-time home buyers are not necessarily buyers who are purchasing their first home ever. You qualify as a first-time home buyer if you are:

  • An individual who has had no ownership in a principal residence during the three-year period ending on the date of purchase of the property.
  • A single parent who has only owned with a former spouse while married.
  • An individual who is a displaced homemaker and has owned with a spouse. Examples of a displaced homemaker include someone who is divorced, widowed, or separated.
  • An individual who has only owned a principal residence not permanently affixed to a permanent foundation (such as a mobile home) in accordance with applicable regulations.
  • An individual who has only owned a property that was not in compliance with state, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.

Down Payment Assistance Programs:

Redstone Federal Credit Union participates in FHLBank Atlanta’s Affordable Housing Program. What does that mean for you? First-time home buyers, veterans, and select community partners may be eligible for down payment assistance.

The good news is that down payment assistance ranges from $5,000 to $15,000. However, as with any government program, it isn’t always a simple process. It may require you to provide additional documents and will generally extend the closing process by 30 days. Funds are limited and are offered on a first come, first served basis. And, the assistance is provided as a home equity loan with 1/5 of the principle forgiven each year you live in that property. Move or sell before 5 years and the unvested balance is owed.

Redstone First Time Home Buyers icon

First-Time Home Buyers

Or those who haven’t owned a home in over 3 years. (There are other ways you may qualify as a first-time home buyer)

Redstone veterans icon

Veterans

Or surviving spouse of a veteran

Redstone community partners icon

Community Partners

Including qualified law enforcement officers, educators, firefighters, or health care workers.



First-Time Home Buyers


What we offer:

Matching Funds program for qualified first-time home buyers

To help you get on solid footing, Redstone can assist in accessing matching funds for your down payment and closing costs when purchasing a home.


How it works: 

For every $1 you contribute to your home purchase, you can receive $4 in matching funds, up to $5,000.


How do I qualify?

Funding is available to qualified first-time home buyers, including those who haven’t owned a home in more than 3 years. There are other ways to qualify as a first-time home buyer. 

In addition to meeting eligibility requirements, the home buyer must:

  • Have a household income equal to or less than 80% of HUD Median Income, adjusted for family size
  • Purchase property located in the state of Alabama
  • Contribute at least $1,000 toward the purchase of the home
  • Complete a home buyer education and financial literacy course (course determined by FHLBank Atlanta)
  • Occupy the home as a primary residence for at least five years


Community Partners


What we offer:

Matching Funds program for qualified community partners
Redstone can assist in accessing matching funds for your down payment and closing costs when purchasing a home.


How it works:

For every $1 you contribute, you can receive $4 in matching funds, up to $7,500.


How do I qualify?

Funding is available to qualified law enforcement officers, educators, firefighters, or health care workers.
This program is open to both first- and non-first-time home buyers.

In addition to meeting eligibility requirements, the home buyer must:

  • Have a household income equal to or less than 80% of HUD Median Income, adjusted for family size
  • Purchase property located in the state of Alabama
  • Contribute at least $1,000 toward the purchase of the home
  • Complete a home buyer education and financial literacy course (course determined by FHLBank Atlanta)
  • Occupy the home as a primary residence for at least five years


Veterans


What we offer:

Access to funds to help with down payment and closing costs for the purchase of a new home
No matching funds from the homeowner or home buyer are required.


How it works:

  • Veterans can receive up to $7,500 in down-payment and closing-cost funding**
  • Returning veterans can receive up to $10,000 in down-payment and closing-cost funding***
  • No home buyer matching funds are required
  • Receive customized financial counseling through FHLBank Atlanta's "Veterans Helping Veterans" program

How do I qualify?

Must be a qualified veteran, active duty service member, or surviving spouse in any branch of the U.S. military.
Household income must be equal to or less than 80% of HUD Median Income, adjusted for family size.

Ready to apply for First Time Home Buyer Loan? It’s easy! 

APR=Annual Percentage Rate

Must be an RFCU® member to obtain a loan. Must be eligible for membership and open a share savings account. A minimum balance of $5.00 is required to open and be maintained in share savings account at all times.  Fees and other restrictions may apply.   All loans subject to credit approval.  Rates, terms, and conditions are subject to change without notice.  Other restrictions may apply.  RFCU is an Equal Opportunity Lender..  Rates are determined by an evaluation of applicant credit at account opening.  Your rate may be different. Fixed rates remain fixed for the life of the loan and adjustable rates are subject to change after consummation. Various

Mortgage programs and terms are available. Must create separate user name and password to gain access to mortgage application process.

The actual interest rate and fees available to you will be based on your credit history and may be different than the rates displayed here. The rates listed above, do not take into consideration any possible adjustments based on changes to any of the loan parameters including loan-to-value (LTV), occupancy, loan amount, repayment feature, loan amount or loan term. Your rate may be different if there is subordinate financing or when loan parameters do not meet secondary market requirements.

A typical purchase transaction example for 20 Year fixed mortgages:
The information provided assumes the purpose of the loan is to purchase a property, with a loan amount of $90,000 and a purchase price of $120,000 (assumes a 25% down payment). For a 20-Year Fixed Rate Mortgage at 4.000% with zero discount points, the APR is 4.644%. The monthly payment schedule would be 239 payments at $545.38 and 1 final payment of $546.12. If the down payment is less than 20 percent, private mortgage insurance (PMI) will be required, which could increase the APR and/or monthly payment. An escrow (impound) account is required and the actual monthly payment will also include amounts for real estate taxes and homeowner's insurance premiums.

A typical purchase transaction example for a 5 Year ARM (30 year term):
At a 2.625% initial interest rate with zero discount points, the APR for this loan type is 3.549%, subject to increase. Based on current market conditions, the monthly payment schedule would be: 60 payments of $361.49 at an interest rate of 2.625%; 299 payments of $366.55 at an interest rate of 2.75%; 1 payment of $365.56 at an interest rate of 2.75%. ARM loans are variable rate loans; interest rates and payments may increase after consummation.An escrow (impound) account is required and the actual monthly payment will also include amounts for real estate taxes and homeowner's insurance premiums. If the down payment is less than 20 percent, private mortgage insurance (PMI) will be required, which could increase the APR and/or monthly payment.

Down payment assistance products are provided through the Federal Home Loan Bank of Atlanta. First mortgage must be with Redstone Federal Credit Union. RFCU and the Federal Home Loan Bank of Atlanta are separate entities. RFCU does not does not warrant, guarantee or insure any service or product offered by the Federal Home Loan Bank of Atlanta.

1The BALANCE Program is offered to RFCU members through a partnership between RFCU and BALANCE. RFCU does not warrant, guarantee, or insure any product or service offered by BALANCE. RFCU and BALANCE are separate entities.

* The interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes. Please consult a tax adviser for further information regarding the deductibility of interest and charges.

**The Veterans Purchase Product is available to veterans or active duty members of any branch of the U.S. military, or their surviving spouses.

***The Returning Veterans Purchase Product is available to veterans or active duty members of any branch of the U.S. military that are currently serving or have served in an overseas intervention, or their surviving spouses.

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