PINE BROOK, N.J. — CU National Mortgage last week announced the initiation of its new Flex-Plus 103 Loan from Fannie Mae.

The program provides borrowers up to 103% financing of their homes to roll in closing costs and other pre-paid charges that can intimidate first time buyers. The product is only offered as a Fannie Mae pilot program solely for Prime Alliance clients. Credit unions of all sizes, from $62 million Rutgers Federal Credit Union to $2.2 billion Delta Community Credit Union have enrolled in the program. The Flex-Plus 103 Loan is a purchase only 30-year fixed loan with a maximum loan-to-value ratio of 103% with no cash out and no subordinated financing permitted. A minimum credit score of 680 is required with a maximum debt-to-income ratio of 45%. Mortgage insurance is required and homebuyer education encouraged. The loan can be used to purchase one-unit owner-occupied primary residences including condos, but no co-ops or manufactured housing.

In addition, CU National Mortgage has included its smaller-sized credit union clients in its CU Community Mortgage Center, a service for credit unions that want to offer a full-array of in-house mortgage services, so they can have access to the Flex-Plus 103 package as well.