NFCU what's the big deal?

[Anonymous]

Hi,

We are hoping to qualify for a FHA loan next summer. Why does everyone want to join NFCU?  Do they approve loans that others do not?  We are hoping to have 620 middle scores by late summer, and the 3.5% down payment.

[Anonymous]

For us, we're choosing NFCU bc they offer 100% financing and their loans don't have PMI. It's the next best thing to a VA/USDA loan.

We originally wanted to get a USDA loan, but last year HUD changed the parameters and no longer considers our area as being rural. So the money we  save from not paying a down payment can go towards paying off debt, buying new appliances, home improvements, or furnishing the house. 

To each his/her own. Everyone does what's best for their own personal households and according to their finances. This is a simplified reason that we're choosing NFCU over other lenders. 

[Anonymous]

NFCU makes their own loans, but also sells some later on. They are Fannie/Freddy compliant and use the same underwriting systems everyone else does. As far as their underwriting, I found it to be the same as any other lender that I dealt with. It really just depends on the underwriter and your profile, as well as the guidelines of the program being applied for. 

NFCU has some pretty high fees compared to other lenders. They have a great product with their 100% financing options, but for FHA, I would honestly recommend shopping around if you are considering going FHA.

[Anonymous]

Thank you for your responses. Now I get it! 100% is a big deal. We will shop around and also keep them in mind. Thanks again.

[Calidreaming]

I agree it seems like there are much better options out there for FHA loans.  But for 100% loans and the 3% down First-Time Homebuyer loans, another advantage is that they go up to 45% DTI.  This is a huge issue for me since the rule was changed to require 1% of student loan balance be used as the payment for DTI purposes when on an IBR plan. 

[ArmyWifeMBA]

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@Calidreaming wrote:

This is a huge issue for me since the rule was changed to require 1% of student loan balance be used as the payment for DTI purposes when on an IBR plan. 

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Unless you have a monthly payment that is showing up on your credit report for your student loan and appears to amortize the loan, the bank will use that monthly payment instead of 1% of the balance regardless if in IBR.

[Anonymous]

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@Anonymous wrote:

For us, we're choosing NFCU bc they offer 100% financing and their loans don't have PMI. It's the next best thing to a VA/USDA loan.

We originally wanted to get a USDA loan, but last year HUD changed the parameters and no longer considers our area as being rural. So the money we  save from not paying a down payment can go towards paying off debt, buying new appliances, home improvements, or furnishing the house. 

To each his/her own. Everyone does what's best for their own personal households and according to their finances. This is a simplified reason that we're choosing NFCU over other lenders. 

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how i WISH I had become a member of NFCU in time to buy the house im in with that NFCU mortgage you mentioned above.. and thats right NO PMI!

You can easily refi down the road to a 15 year with a lesser rate

[Calidreaming]

Thanks ArmyWifeMBA, I'm so glad to hear this.  The rules can be very confusing.  I was talking to a loan officer at Quicken Loans who was super discouraging and insisted that I'd have to use 1% no matter what.  I'm pretty sure he was just upset I wouldn't let him do a hard pull on my credit.  I'm so glad I came on this board before applying for mortgages.  It's scary to think how you can be manipulated if you don't have the right info. 

[Anonymous]

Just curious so you don't get your hopes crushed, you are able to join correct?

[Calidreaming]

jgr210, yes I'm already a member