I am also considering this program vs. FHA.
My friends (who are also buying a house this year) and I both called NFCU's mortgage department, and every time, we each get conflicting information. But compiling all of the information that we have gathered over the past 6 weeks, here are the minimum requirements:
- Minimum middle credit scores of 680 (required of both applicants if applying with a spouse)
- Minimum middle credit scores of 720-750 to avoid 0.5% interest rate bump. (I say 720-750 because we were told different things depending on the day we called and who we talked to), I assume this will depend largely on whether your underwriter at closing wants to be generous that day.
- No reserves required if purchasing a home < $417K
- Six months of reserves required (P+I+T+I+HOA fees) if using their 100% Jumbo HomeBuyers Choice loan, basically any loans above $417K
- They will count 60% of the value of any 401(k) in the applicants' names
- Maximum 6% seller contribution towards closing costs
- Maximum 3% gift contribution (by family, close relatives, etc.)
- 1.75% funding fee - cannot be rolled into mortgage
- 1.00% loan origination fee
- 0.75% discount points
I think that's it. Like I said, we keep getting conflicting information depending on who we talk to. My friends are actually planning on going through a formal application through NFCU this week, so I might know more in a few days/weeks. But I think that the reason why these minimum requirements aren't documented anywhere on some sort of brochure is because NFCU reviews everything on a case-by-case basis, so they will make special considerations if they think the customer is good for it. Hope this helps.
Starting Scores: EQ 582 TU 584 EX 615 (FICO - Lender Pulled) 1/4/2012