Received Pre-Qual Letter for NFCU Zero Down Mortgage

[Anonymous]

I sat down with the seller today and we have an agreement in principle (handshake). She is requesting a pre-approval letter to contract on the home. I applied for NFCU's Zero Down Homebuyer's Choice Mortgage today and received a Pre-Qualified Letter for the amount requested. If all goes well this will be a true zero down loan with only the appraisal coming out of pocket as the seller has agreed to pay closing costs. Interest rate 5.75%, tier B with middle score of 715. Two years ago scores were 560's to 605 with 20+ collection accounts. I just joined NFCU 2 months ago. Lots of hard work went into that letter. Still more work left but one step closer!

[Anonymous]

Congrats!

5.75 seems pretty steep though for 30 yr fixed or is this something else, VA, etc?

[Anonymous]

It is higher than I'd like, but the payment is within $160/month of an FHA loan. It is also with no points. Overall, I can live with it and ,barring disaster, worst case scenario is refinance down the road a bit.

[kc0039]

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@Anonymous wrote:

Congrats!

5.75 seems pretty steep though for 30 yr fixed or is this something else, VA, etc?

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It is NFCU's unique $0 down program. They can charge whatever interest rate they want since it's a unique program that it comparable to a VA loan.

[oldman425]

I went the same direction.  Intrest rate is higher because it's a 0 down, no PMI.  Although we might buy down in the rate to get it closer to 4%.  They will tend to over estimate the closing costs, but it will come down in underwriting.  Our close is scheduled for 6/2/17.

[Anonymous]

Can someone refer me so i can open an account at NFCU? I'll send you money. 

[oldman425]

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@Anonymous wrote:

Can someone refer me so i can open an account at NFCU? I'll send you money. 

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We can't, only family members can.  But there is a way, try searching Navy League here on the forums.

[reckedhim]

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@Anonymous wrote:

Can someone refer me so i can open an account at NFCU? I'll send you money. 

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http://ficoforums.myfico.com/t5/Personal-Finance/Navy-Federal-CU-The-REAL-way-in-for-those-that-dont-qualify/td-p/4598275

[Anonymous]

Re: Received Pre-Qual Letter for NFCU Zero Down Mortgage

‎04-10-2017 08:50 PM

Can someone refer me so i can open an account at NFCU? I'll send you money. 

No sure where you live...but im using NWFCU...If you're in DC area....they also offer 100%  financing 

[Anonymous]

Shopping for rates/payments and got a 2nd pre qualification today from Compass for zero down with lower payment and rate (5.250%) within $105 on the FHA going rate/payment. Conventional primary loan, not government program, but does qualify due to home being in a low income census tract. I emailed the NFCU LO to see if she can do anything with the rate/payment and speed the pre approval up a bit.

We are still working to get the contract completed but since the house isn't officially on the market I'm not too concerned. The seller seems to be buying time to get their new crib ready and that is to my advantage for now. 

I am almost in disbelief.