SECU of Maryland joined the limited number of credit unions offering to finance 100% of a real estate purchase.

The $2.8 billion institution, based in Linthicum, Md., said the borrower would still have to put down the lessor of $1,000 toward closing costs or 1% of the sale price. Members eligible for the 100% LTV mortgages will also need a good credit score, the credit union said, and demonstrate an ability to repay the loan. Also, borrowers can only use the loan to purchase primary real estate and cannot own any other real estate at the time of application.

SECU said it was motivated by a desire to help more of its 230,000 members and overcome the hurdle of a down payment, which can run from 3.5% to 10%.

“When looking for financing options to purchase a $200,000 home, for example, typical conforming and government financing programs will require 3.5% to 10% of the sales price up-front as a down payment,” explained Kevin Kesecker, vice president of lending at SECU when announcing the program.

“That would be $7,000 to $20,000 needed from the borrower before even considering other requirements like closing costs, which would include things such as property insurance premiums, property taxes and local municipality fees to record the transaction, just to name a few,” he said. 

“When you couple that large down payment and closing costs with a tight economic climate, it makes it more difficult to obtain the up-front money needed to buy a house, particularly for first-time homebuyers,” he concluded.

The $60.4 billion Navy Federal Credit Union and 1.3 billion NASA Federal Credit Union also finance 100% LTV mortgages.