Buying your first home is scary stuff! Heck! I’m considering buying my third home and I’m still scared and not sure what to expect. How are you supposed to save 20% for a down payment when you’re busy paying bills and saving for retirement and you know, living life? To find the answers, I sat down with Dan Newberry, VP of Mortgage Operations at TTCU. Dan has been in the mortgage field for over 18 years so I figure he knows a thing or two.

To begin with, he let me know that TTCU pretty much has a loan to fit every need* but today we were focusing on how to buy a home without having a down payment. And to my surprise, TTCU has two options available:

  • 100% Financing Loan. It’s just that, 100% of the home can be financed! How amazing is that?!?! This loan does require a 720 credit score and adequate credit history, plus closing costs.

  • 80/20 Combination Loan. This loan splits the purchase price into two loans – 80% is applied to a first mortgage; 20% is applied to the second mortgage. You will need a credit score of 680 and an established credit history, plus closing costs.

What the heck are ‘closing costs’? 

Closing costs include things such as inspections, property taxes, insurance fees and lender fees. As you might expect, these fees can add up! That’s why TTCU focuses on delivering low closing costs to our members. The only fee TTCU charges for home loans is $649. That’s it! No other “junk fees” or hidden fees. 

And sellers are allowed to pay up to 3% of the sales price towards closing costs. So if you’re buying a home for $100,000 that could be up to as much as $3,000 that the seller may contribute.

The important thing is to do your research! Investigate all your options and see how they fit your budget. Stop by and visit with one of our professional loan officers. They are here to help you understand all your options and find the best mortgage for you and your family.