First Time Home Buyer | Loan Options and Calculator

Purchasing your first home is an exciting milestone. From choosing where you want to live, to selecting paint colors and finding the perfect space for you or your growing family, it’s all part of the journey of becoming a homeowner.

But before you start touring homes, it’s good to understand the basics of the entire process. Here we’ll cover preparing to buy, understanding how home financing and all costs work, as well as shedding light on the most fundamental aspects of buying and owning a home.

Select where you are in your home buying journey below to explore our articles and resources.

Understanding the basics of buying a home

Buying a home is a big milestone, and researching the process is the first step!

From developing your budget, to learning about credit scores and how much to save for your down payment, we’re here to make sure you’re doing what’s best for your financial journey. Learn more about the basics of home buying from our expert articles.

Preparing to buy a home – what you need to know

You’ve done your research, you understand the basics of your budget and now you’re ready to buy.

Before you start putting offers on homes, be sure to check out some resources to help guide you in making the best home buying decision possible.

Navigating the Path to Homeownership – a podcast

Home Purchasing

Navigating the Path to Homeownership – a podcast

July 11, 2023

00:09:26

In this episode of Small Talks for Big Change, Michele Enriquez discusses homebuying with Fred Williams, a Home Loan Consultant at Patelco, as they debunk myths about home loan rates and emphasize Patelco’s commitment to helping members achieve their homeownership goals.

Fred highlights the importance of personalized guidance. Discover how Patelco’s approach stands out and learn more by scheduling an appointment with a Home Loan Consultant today!

Listen on Spotify Listen on Apple

Did you know?

When lenders decide whether to pre-approve you for a mortgage, they look at four main factors, commonly known as the four C’s: credit, capacity, capital, and collateral. Getting pre-approved for a mortgage can give you an edge over other buyers. Read more here to understand what each of them means and why they matter.

Your home loan options explained

We know there are a lot of mortgage products out there, so here’s an easy glimpse into the most common types that Patelco offers and how much you can expect to borrow through each.

Loan Program	Down Payment	Borrow up to¹	Key benefit
First Time Buyer loan	3% down	$806,500	Low down payment with no closing costs²
VA loan	0% down	$806,500	Affordable options for Veterans and active duty service members
FHA loan	3.5% down	$806,500	Low down payment and easier credit qualifications
Jumbo loan	5% down³	$1 million	Buy in higher price range
Piggyback (80/10/10) loan	10% down + 10% down from 2^nd mortgage	$2 million	20% overall down payment may help qualify for larger loan and save on costs

Frequently Asked Questions

Your mortgage loan’s interest rate is affected by a variety of things, including your credit score, down payment, and the amount of your mortgage loan, among other factors.

It’s a common misconception that you need a 20% down payment to buy a home. In fact, we offer programs with down payment assistance and down payment options as low as 3% and no closing costs².

We offer several programs designed to help make homeownership more affordable and we understand everyone’s financial picture is unique. We recommend setting up a preliminary conversation with a Home Loan Consultant to find the best option for you.

It is a type of insurance protection on your mortgage and is typically required on loans with a down payment of less than 20%. It provides less risk to the lender while offering buyers a lower down payment option.

There are several ways to cover the cost of mortgage insurance, but the most common option is to pay for it monthly, as part of your total principal, interest, taxes, and insurance (PITI) payment on your mortgage.

Closing costs are fees charged for services related to your loan. These are additional fees (aside from your down payment amount) and are due once your loan closes. Both buyers and sellers may have to pay closing costs, which can range from 3 – 6% of the home purchase price. Some types of costs include your home appraisal, property search information, insurance premiums, and title services.

Costs can vary depending on where your property is located, your loan amount, and total purchase price. Your Home Loan Consultant will provide an estimate with a detailed breakdown of your costs after you apply for your loan.

The Patelco advantage

Low rates, flexible options

Competitive rates, flexible loan programs and down payment options

Expert advice and guidance

Personalized advice and guidance at each step – find a Home Loan Consultant here

Home protection services

Compare your home insurance options and savings — get a free quote

Fast and free pre-approvals

Shop for homes with confidence with our full credit approvals

Lock your rate while you shop

Secure your rate for up to 30 days while you’re actively making offers⁵

On-time closings

We’re committed to closing quickly to meet your contract deadlines

¹ Loan amount may vary by county.

² Closing costs fees include applicable title, escrow and recording cost fees and will appear on the Closing Disclosure. The appraisal and credit report fee will be paid up-front by the member and reimbursed at closing. Hazard Insurance, Taxes, HOA fees, Purchase Owner’s Policy and Transfer Tax are not covered by Patelco. At least one borrower must be a first-time home buyer (had no ownership interest in a property in the last three years). Applicable on the purchase of a single-family residence and 30-year fixed conforming loans with minimum 740 FICO.

³ Eligible for conforming loan amounts and 95% loan-to-value (LTV) available on 15-and 30-year fixed jumbo mortgages only. Loans over 80% LTV require mortgage insurance.

⁴ The HomeAdvantage program is made available to you through a relationship between Patelco Credit Union and CU Realty Services. Program rebates are awarded by CU Realty Services to buyers and sellers who select and use a real estate agent in the HomeAdvantage network of approved realtors. Home buyers or sellers are not eligible for the rebate if they use an agent outside this network. Using your credit union for a mortgage is not a requirement to earn a rebate. Rebate amounts are dependent on the commissions paid to the agent. Patelco may have specific rules on how your rebate will be paid out. Rebate incentives are available in most states; however, are void where prohibited by law or by the lender.

⁵ Lock and Shop program is available for first (1st) mortgage Jumbo loan purchase transactions only. Must have a home loan application with Patelco to lock in a rate. Patelco will honor your rate up to 30 days from the date it is locked. Once a fully-executed purchase contract is received, the rate will prevail until loan funding.

Rates, terms, conditions, and availability are subject to change or withdrawal at any time and without notice. Nothing herein is or should be interpreted as an offer or commitment to lend. Loans are subject to credit and property approval. Other conditions and restrictions may apply. Hazard insurance may be required. NMLS ID Number is 506373.

First-Time Buyer Learning Center

Financial resources

Expert advice & guidance

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Understanding the basics of buying a home

First-time home buyer’s guide

Preparing to buy a home – what you need to know

Navigating the Path to Homeownership – a podcast

Mortgage Calculator

Did you know?

Your home loan options explained

Frequently Asked Questions