WAUKESHA, Wis. - For many Americans, the main obstacle standing between them and owning a home is being able to save enough money for a downpayment. For the 78,000 members of Landmark CU, the dream of owning a home has become reachable. Landmark CU, the largest credit union in the state-$486 million in assets-is making a new Zero Down Home Loan product available to members to complement the credit union's First Time Home Buyers Program. The new loan has a fixed-rate and it waives all closing costs for buyers who have never owned a home or have not owned one for at least three years. Coupled with the First Time Buyers Program which Landmark has offered for seven years, members are able to purchase a home with no down payment, no closing costs, and no escalating interest rate. "We find many young couples with excellent income levels and good credit records who have not been able to save for a down payment because they have had a lot of `starting out in life' expenses," said Betty Feierstein, vice president of the credit union's mortgage department. "If they live in a nice apartment, the monthly rent can be more than an average mortgage payment. So buying a home is in their best interest." The Zero Down Home Loan has an amortization of up to 30 years. There is no maximum income limit or first-time buyer counseling required. The borrower must have at least two months reserve of their principal, interest, taxes and insurance payment. The first mortgage is for 95% of the value, as is at Landmark's standard interest rates. The remaining 5% is loaned as a second mortgage at approximately 1 1/2% higher than the first mortgage rate. The loan is restricted to single family, detached, owner occupied homes and is available to all CU members. All applicants must pass the same income and credit standards of the credit union as other mortgage product applicants. With attractive terms like these, why would any of Landmark's members choose to take out a different type of mortgage loan with the credit union? To reduce their monthly payments, said Feierstein. "Why would anyone choose to finance 100% of their home if they don't have to?" At press time, the Zero Down Home Loan product was barely one month old and Feierstein said 15 members had already applied for it. Landmark has $139 million in mortgages on its books. Another $350 million in mortgages are owned by Fannie Mae. Its total loan portfolio is $429 million. -
ekingoff@cutimes.com
