First-time Home Buyers

Getting Started Mortgage Programs Get Preapproved


First Home Club | SONYMA | Conventional Mortgages | FHA | VA Mortgages | Piggyback Mortgages | Portfolio Mortgages

Mortgage Programs

HomeReady™ by Fannie Mae
Reliant has teamed up with Fannie Mae to offer this enhanced affordable lending product, designed to help meet the diverse needs of today's buyers. With low fixed rates and loan terms of up to 30 years, HomeReady offered through Reliant can be coupled with community grants offered through many municipalities.

Overview:

Designed for credit-worthy, low- to moderate-income borrowers, with expanded eligibility for financing homes in designated communities.

Benefits:

Low down payment.  Up to 97% financing for home purchase with many borrower flexibilities.
Flexible sources of funds.  With no minimum contribution from the borrowers, this program offers additional flexibility to help the first-time home buyer afford his/her first home.
Home-ownership education. Preparation for the responsibilities of home-ownership is just one of the hallmarks of this program. Easy-to-use, low cost, online course provided by Framework helps buyers get ready to buy a home.

Click here to learn more.

First Home Club℠
The First Home Club (FHC) was launched in 1995 to offer an incentive for households with incomes at or below 80% of the area median income to save toward the purchase of a new home. The program is administered through Reliant Community Federal Credit Union, which is a member of the Federal Home Loan Bank of New York (FHLBNY).
Overview:

FHC subsidy funds, up to $7,500, can be used to provide down payment and closing cost assistance by granting $4.00 in matching funds for each $1.00 saved to qualified first-time home buyers who follow a systematic savings plan and participate in a home-buyer counseling program. At the end of the program, the home-buyers will have available up to $9,375 in funds for the down payment and closing costs for their purchase.

Benefits:

  • First-time home buyer program
  • Income eligibility is applicable
  • Grants available up to $7,500
  • Home-buyer counseling required

Learn more | Download our First Home Club Application

SONYMA



Visit Reliant's Mortgage Center for details.

Conventional Mortgages

One of the most common mortgages in our area is the Conventional Mortgage. These mortgage loans come in either fixed or adjustable rates and are not insured (or guaranteed) by the U.S. Government like VA, FHA, and USDA loans are. Also known as Conforming Loans, conventional mortgages conform or adhere to guidelines set forth by either Fannie Mae or Freddie Mac and generally not the lender. Some lenders, such as Reliant, will continue to service your loan (collect payments and pay escrows) even after Fannie Mae acquires the loan. Loans with down payments of less than 20% will require Private Mortgage Insurance (PMI). The maximum mortgage amount for a single family home is $417,000. Qualifying for a conventional mortgage can be more challenging, but the rewards are worth it!

Conventional Fixed Mortgage Benefits:

Lower overall monthly mortgage payment than FHA options
Flexible sources of funds to close
Primary residences as well as vacation and investment homes are eligible
Down payments as low as 3%
Flexible mortgage term options from 10–30 years
PMI may be able to be canceled in time for most borrowers

Conventional Adjustable Rate Mortgage (ARM) Benefits:

Lower interest rates during the fixed period translate to lower mortgage payments
Payment of additional funds to reduce the balance will lower the payment after the initial period
Least expensive option for shorter-term ownership such as designed relocations

FHA (Federal Housing Administration) Mortgages

An FHA mortgage loan is insured by the Federal Housing Administration, which is part of the Department of Housing & Urban Development's (HUD) Office of Housing. The FHA provides mortgage insurance on loans made by FHA-approved lenders throughout the U.S. to its lenders when they fully conform to the guidelines established. This insurance protects the lenders against a portion of a loss if a homeowner defaults on his/her loan. In order to pay for this protection, the borrower will pay a Mortgage Insurance Premium (MIP) at the time of closing and monthly, generally for the life of the loan.

Benefits:

Less stringent as compared to Conventional Mortgages on an applicant's debt-to-income ratio
Offer down payments as low as 3.5% on owner-occupied residences
Lower down payment options for 2-, 3-, and 4-family properties
FHA loans are assumable with qualified purchasers.

Learn more at hud.gov .

VA Mortgages

The U.S. Department of Veterans Affairs (VA) helps enable servicemembers, veterans, and eligible surviving spouses to become homeowners. The VA provides for a home loan guaranty of a portion of the loan to an approved lender, which enables the lender to provide the borrower with more favorable terms. To qualify for a VA loan, you must have approved credit, earn enough income, and get a Certificate of Eligibility. Click the link below for more details!

Benefits:

No down payment required for purchases up to $417,000
No Mortgage Insurance (or PMI) required
Flexible underwriting available
Reduced closing costs
Competitive 30-year fixed-rate program

Learn more at benefits.va.gov .

Piggyback Mortgages

"Piggyback" Mortgages, also known as "80-10-10" mortgages, occur when a borrower takes out more than one loan at the same time to either purchase or refinance property. The "80" is commonly considered the percentage of value of the first mortgage; the first "10" is the percentage of value of the second mortgage; and the remaining "10" is the cash investment (or equity) of the purchaser or refinancing borrower. This structured transaction has several advantages noted below, and can be used in conjunction with the standard Conventional Mortgage without the requirement of Private Mortgage Insurance.

Benefits:

Lower interest rate on the first mortgage when total financing exceeds $417,000
No Private Mortgage Insurance (PMI) needed, even with a down payment of less than 20%
The ability to pay off one of the structured mortgages in advance of the other to lower payments
Structured cash-out with better terms on the first mortgage

Contact a Reliant Mortgage Originator to see how structured financing can save you money!

Portfolio Mortgages

Many borrowers who are not eligible veterans or who do not qualify for an FHA, VA, or Conventional Mortgage can qualify for a Portfolio Mortgage. Simply defined, this mortgage is a mortgage loan offered by a lender (such as Reliant) with the intention of holding it in its own loan portfolio. Portfolio loans utilize Conventional guidelines but offer the flexibility in the loan granting process. Portfolio Mortgages can be either Fixed or Adjustable rate, with or without Private Mortgage Insurance, and will continue to be serviced by Reliant.

Benefits:

Greater flexibility in unique underwriting or property situations

Get Preapproved

Find out how much you can spend on a home before you your home search even begins!

Click the button below to fill out a simple web form, and a Reliant mortgage representative will be in touch within one business day to help get you started on preapproval for your mortgage!

Start My Preapproval!

Find a Reliant Mortgage Originator

Reliant's professionally trained mortgage staff has the expertise and confidence needed to answer your questions and help you with mortgage-related issues.

Select an Originator Now


NMLS Registry Information for Reliant Community Credit Union Loan Originators

Already own and considering refinancing?

Our Mortgage Refinance page shares some reasons people refinance, and also provides some insight into the process.

Learn More