NFCU mortgage on a NFCU bank-owned foreclosure?

[jaa97]

I am just beginning the process for buying my first home and was wondering what everyone's experience with working with NFCU was?

I heard about their first-time homebuyers program with 0% downpayment and reasonable interest rates, and I am thinking this option may be best for me.

I found a condo I really like that is foreclosed at an amazing price and just found out that it is currently owned by... lo and behold... NFCU!

I'm 24 years old living in the DC metro area, my credit score is in the 669 - 704 range as of Monday (so relatively good), I make $60K+ a year and my DTI ratio is:

-Without rent included - 23.7%

-With current rent included - 40.6%

So...

1) What is your experience with working with NFCU for a mortgage? How long does the process take typically?

2) Do I have a shot at being approved for this loan of max $180k?

2) Would it be easier or more likely to be approved if I get my mortgage through them and then buy the house from them? Or does this not play a factor at all...

Thanks!

 EDITED

[ShanetheMortgageMan]

From what I've gathered if you are well qualified then NFCU's process is pretty easy.

Your total debt ratio includes the new housing payment, which is not just the principal & interest but also property taxes, homeowners insurance, and PMI in most cases of less than 20% down.  I am not sure how you are estimating the payment on $180k to be $750-800, even at a 4% interest rate the P&I would be $859.35/mo.  I doubt NFCU's 100% financing with no PMI is at 4% though, I suspect it'll be closer to 5%.  FYI, at 5% the P&I on $180k would be $966.28/mo.  https://www.navyfederal.org/products-services/loans/mortgage/mortgage.php gives a rate example of 6.125%, which is a bit odd.  Homeowners insurance typically ranges between $600-1,200 depending on where you are buying (that's $50-100/mo), it'd be a good idea to get a quote to help you with a more accurate figure.  Property taxes can vary, but unless you in a low cost tax state, usually are no less than around 1% of home values, so figure another $1,800/year ($150/mo) or perhaps more.  You should probably be able to find out what the current property taxes are on the home you are considering.

So you mentioned your DTI without your rent payment is 23.7% of $60k/year ($5k/mo), or $1,185/mo in debt payments - is that correct?

Adding a $1,166.28/mo housing payment (could be on the low side), your debt ratio would look to be a little over 47%.  I am not familiar with the debt ratios that NFCU looks for on their 100% HomeBuyers Choice Mortgage, but I suspect they are probably looking for the total debt ratio no to exceed 45%, if so, you look to be a bit over that.  If you are over their debt ratio limit then hopefully the loan officer at NFCU can advise you which debts you can pay off to get your debt ratio to the level they need you to be at.  Since the REO (real estate owned) division of NFCU is separate from the mortgage division, buying the home from NFCU will probably not help with getting your mortgage approved (other than maybe they may not need an appraisal)... however getting pre-approved from NFCU may make NFCU's REO division feel more comfortable accepting your offer vs. others who aren't using NFCU for their financing.

[jaa97]

Thanks, Shane!

I was typing quickly and miscalculated the mortgage -- you are absolutely correct. NFCU's mortgage calculator estimates about $970 for 15 years and $1120 or so for 30 years and property taxes are (I believe) an added 2000 or so.

Correct about the DTI and amount of debt - I have a car loan and student loans unfortunately (hooray!)

Thanks for all the info, that really helps a lot!