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Special Mortgage Programs

The Credit Union offers special mortgage programs for our members, including: First Time Homebuyer's Mortgages for members who have not owned a home in the past three years and new or relocating state employees, Construction Loans, Manufactured Home Loans, Mortgage Credit Certificates, and Federal Home Loan Bank of Atlanta (FHLBA) Grants. At this time the 5-year ARM product only offers a monthly repayment option while the fixed rate product allows for a monthly or biweekly repayment option. Funds are collected with each payment, in addition to your principal and interest payment, to allow for the disbursement of the estimated annual tax and insurance premiums that will be due. These funds are placed in an escrow account until needed and earn dividends equal to the share account rate. Payments may be made directly to the Credit Union, through Payroll Deduction or Funds Transfer.


3 Ways to Request a Special Mortgage Loan
  1. Request at your local branch ARM Loan Information Checklist / Fixed Rate Loan Information Checklist
  2. Request via Member Access
  3. Request with our Contact Center (open 24 hours): (888) 732-8562 or (919) 857-2150

First Time Homebuyer's Mortgage

This special mortgage is designed to assist members who wish to realize the dream of owning their first home. Members who have not owned a home in the past three years, new employees of a North Carolina state agency or public school system and existing employees who are relocating to accept a new position with the state are eligible for the First Time Homebuyer’s Mortgage Program. Members who are considered new employees or have relocated to accept a new position must finance their new home within 12 months of their change. Financing of up to 100% of the purchase price of a home is available with a maximum loan of $400,000. An additional $2,000 may be advanced to assist you with closing costs2. This product is available under our 5-Year ARM program.

Specifications

  • 5-Year ARM - % Initial Rate for -year terms ( % APR1) Calculate Monthly Payment  (not available with biweekly repayment option)   Future rates and payments determined based on adding a margin of 4.25% to the index (1 Year Constant Maturity Treasury Yield rounded up to the next highest one-eighth of one percentage point). Subject to the floor rate of 4.50% and maximum adjustments every 5 years of 2.0% with a lifetime cap of 6%. The recent index is 0.25%.
  • Origination fee .75% of loan amount (cap of $1,500)
  • No application fees or credit report fees
  • Home must be primary residence for the borrower
  • Private mortgage insurance not required
  • Available for terms up to 30 years
  • Property must be located in North Carolina, South Carolina, Virginia, Georgia or Tennessee

Manufactured Home Loans

The Credit Union will finance single and double wide manufactured homes through our 5-year ARM (adjustable rate mortgage) programs, our 10-Year or 15-Year fixed rate mortgage programs or through our First Time Homebuyer's Mortgage program. Manufactured homes must have been manufactured on or after June 15, 1976 to be considered for financing.

Specifications

  • Maximum term of 20 years for manufactured homes 5 years old or newer
  • Maximum term of 15 years for manufactured homes greater than 5 years old
  • Cash out refinance up to a maximum of 65% Loan to Value (LTV)
  • Home must be placed on property owned by the borrower with deeded access or access directly to a state maintained road
  • Home must be on a permanent foundation (brick or block) with the tongue, wheels, and axle removed
  • A pitch roof – shingles or metal
  • Home must be listed with the tax office as real property
  • No application fees or credit report fees
  • Home must be primary residence for the borrower
  • Property must be located in North Carolina, South Carolina, Virginia, Georgia or Tennessee

Construction-Permanent Mortgage

The Credit Union offers a construction-permanent mortgage under our 5-Year ARM program or our 15-Year fixed rate mortgage programs for members building a new home or making a major addition to their existing home. The program provides a 6-month construction phase before the permanent, regular monthly payment phase begins.

Specifications

  • 5-Year ARM - % Initial Rate for 30-year terms with 80% or less loan-to-value ( % APR1)  Calculate Monthly Payment  Future rates and payments determined based on adding a margin of 3.0% to the index (1 Year Constant Maturity Treasury Yield rounded up to the next highest one-eighth of one percentage point). Subject to a floor rate of 3.25% and maximum adjustments every 5 years of 2% with a lifetime cap of 6%. The recent index is 0.25%.
  • 5-Year ARM Program: % Initial Rate for 30-year terms with 80.1% - 90% loan-to-value ( % APR1)  Calculate Monthly Payment  Future rates and payments determined based on adding a margin of 3.5% to the index (1 Year Constant Maturity Treasury Yield rounded up to the next highest one-eighth of one percentage point). Subject to a floor rate of 3.75% and maximum adjustments every 5 years of 2% with a lifetime cap of 6%. The recent index is 0.25%.
  • 15 Year Fixed Rate Term: % (% APR1) for 90% or less loan-to-value  Calculate Monthly Payment  Calculate Biweekly Payment
  • One closing conducted
  • Origination fee .75% of loan amount (cap of $1,500)
  • No application fees or credit report fees
  • Home must be primary residence for the borrower or a second home
  • Property must be located in North Carolina, South Carolina, Virginia, Georgia or Tennessee

Mortgage Credit Certificates

Mortgage Credit Certificates (MCC) are issued through the NC Housing Finance Agency for mortgages used to purchase a member's first home. A federal income tax credit for 30% of the mortgage interest payment is provided each year (up to a maximum benefit of $2,000 per year), effectively reducing the tax liability for a home purchase. Income and sales price limits apply. More information is available at www.nchfa.com.

The member may use the MCC with most of our mortgage products. The Credit Union will process the MCC request at the time of the mortgage financing request for a non-refundable fee of $475.

FHLBA Grant Program

The Federal Home Loan Bank of Atlanta’s (FHLBA) First-time Homebuyer Program provides grants in the form of forgivable second mortgages in amounts up to $5,000 to assist members with down payment and closing costs needs.

In order to be eligible for the grant funds, members must contribute a minimum of $1,000 of their own funds towards the downpayment/ closing cost. The FHLBA will provide grant funds at up to 4 times the amount of funds our member contributes up to a maximum of $5,000. Members do not have to repay these funds if they remain in the home for at least five years. To be eligible for this program, a member’s total household income must not exceed 80% of the area median income for the county in which the home is being purchased.

This program can also be used in combination with the Mortgage Credit Certificate (MCC) program offered through the North Carolina Housing Finance Agency (NCHFA).

The FHLBA Grant is only available through our adjustable rate products. Please contact your local branch or the Contact Center for additional information and guidelines.


1 APR = Annual Percentage Rate
2The interest portion of the loan that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes. Consult a tax advisor for further information regarding the deductibility of interest and charges.
*Quoted rates, dividends, annual percentage yields (APY) and rates (APR) are subject to change daily at the discretion of the Board of Directors.