Dreaming of a Perfect Home?

Do you want to be free from the worries of rising rent payments and demanding landlords? Have you considered buying a home for the first time or buying a home again but are worried that you don't have enough money or guidance? Then our special First-Time Home Buyer (FTHB)¹ program is exactly what you need to take the next big step to homeownership! Keep reading to learn how we can help members like YOU make the smartest move of your life.

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Your Dream Home Maybe Closer Than You Realize!

Qualifications

Eligible for PEFCU membership
First-time buyer¹
Dwelling will be primary residence in Florida
FTHB loan preapproval²
Completes Fannie Mae's free HomeView™ course³
Other qualifications may apply

Required HomeView™ Course

student

We want to make sure you start your homeowning journey off on the right foot, so completing Fannie Mae's free HomeView™ course is a requirement for our FTHB program. To register, click the link below.

First-Time Home Buyer FAQs

Who qualifies as a first-time homebuyer?

A member who is purchasing a residential property to use as their primary residence for the first time or who has not had ownership interest (sole or joint) in a residential property during the three-year period preceding the date of the purchase qualifies as a first-time homebuyer.

What’s the minimum credit score required to qualify for PEFCU’s First-Time Homebuyers (FTHB) program?

Members must have at least a 680 middle credit score. To determine the middle credit score, PEFCU pulls a credit report from each of the three major credit reporting agencies (Equifax, Experian, and TransUnion) and uses the second highest score reported.

How does PEFCU’s FTHB Program work?

Our FTHB program offers financing for up to 97% (maximum of $350,000) of a first-time homebuyer’s residential property purchase.

Does PEFCU charge points on the FTHB program?

No, PEFCU does not charge points on any of our loan programs.

Can I buy the rate down?

No, you cannot buy the rate down for any of our loan programs.

How do I get a prequalification approval letter for the FTHB program?

You can apply for a prequalification approval online, in person, or by telephone. Once your application is submitted and reviewed, a mortgage loan expert will contact you to discuss and review your income, assets, and credit history to determine eligibility.

How long is my prequalification approval good for?

A prequalification approval is valid for 120 days from the date your credit is pulled.

What documents do I need for prequalification approval?

Only a mortgage application is needed for a prequalification approval. The mortgage loan advisor will provide a detailed list of documentation needed once they receive your loan application, and it is important to respond to their requests as soon as possible to move the process along. Once you have a sales contract to purchase a residence, you will need to provide more documentation to start the underwriting process, including a copy of the ratified sales contract, income verification for all sources of income used to qualify for the loan, bank statements, and other asset statements.

What is the difference between a prequalification and a preapproval?

For a prequalification, PEFCU obtains your credit report to verify your credit history but does not fully verify the income, employment, and asset information you report on your application until later. For a preapproval, the lender not only pulls your credit report to verify your credit history, but also goes a step further and requests documents that confirm your income, employment, and assets, which are then reviewed and verified by an underwriter.

Although both a prequalification approval and a preapproval can give you and the seller confidence that the credit union can finance your home purchase, neither is a guarantee that the loan will close. PEFCU does not offer a preapproval program at this time.

Can we purchase new construction through the FTHB program?

No. We can finance a new house that has already been built, but we cannot finance the construction of a house that has not been completely built yet.

Will the FTHB program allow me to buy a fixer upper and finance the remodel?

No, the FTHB program loans can’t be used for rehabilitation.

What type of property qualifies?

Detached (Standalone structure that does not share outside walls with another house or building)
Attached, row, semi-detached
Duplex
Townhome
Planned Unit Development (PUD)
- PUD: A subdivision that consists of common property and improvements that are owned and maintained by an HOA for the benefit and use of the individual PUD unit owners. The unit owners in the project have title to a residential property (lot and structure) and an interest in the HOA that owns or manages the common areas and facilities of the PUD.

Can an investment property be purchased through the FTHB program?

No, PEFCU does not finance investment properties. The FTHB program is only for buying a primary residence.

Will taxes and insurance be included in my monthly mortgage payment for the FTHB program?

Yes, for the FTHB program, PEFCU will set aside a portion of your monthly mortgage payment in an escrow account to pay both taxes and insurance annually. The amount required for escrow is a moving target. Your tax bill and insurance premiums can change from year to year. PEFCU will determine your escrow payments for the next year based on what bills they paid the previous year. To ensure there’s enough money in escrow, PEFCU requires a minimum of 2 months’ worth of extra payments to be held in your account.

How much are the closing costs?

Closing costs can vary based on sales price, location, etc., but they are generally three to five percent of the loan amount. These include origination fees charged by the lender, plus third-party fees for the appraisal, survey, title insurance, and settlement company services. Also, there are government fees, taxes, and other miscellaneous costs to be aware of. Once your mortgage loan application is processed, one of our mortgage experts will provide you with a Loan Estimate, which will include a detailed estimation of fees and costs. Note: PEFCU charges a $995 origination fee on the first mortgage loan.

Please keep in mind that the FTHB program loans don’t cover closing costs. Both buyers and sellers can pay closing costs. However, the buyer usually pays most of them. The buyer is responsible for paying them out of pocket, and some of the fees must be paid up front before closing. However, you can always negotiate with the seller for assistance with paying some of these closing costs, which are called seller concessions. Seller concessions can be extremely helpful if you think you’ll have trouble coming up with the money you need to close.

Are there any more special requirements to qualify for the FTHB program?

Fannie Mae's HomeView™ course must be completed by all borrowers on the FTHB loan and Home Equity FTHB loan prior to approval. Fannie Mae’s HomeView™ course for first-time home buyers will give you up-to-date knowledge that will leave you confident about your next move. Through HomeView™, you’ll complete seven modules that will give you the confidence you need to fulfill your homeownership dreams. Once you’ve completed this course, you’ll receive a certificate of completion that must be presented to PEFCU. This course must be completed before your application is approved.

Important Disclosures

1. Offer valid as of 7/1/2023 and may be canceled without notice. Valid in Florida and Kentucky only. Membership required. Approval subject to creditworthiness. Primary residence only. Construction loans excluded. Acceptable appraisal and title required. Property insurance required. Flood insurance when required. Escrows are required. Borrower is responsible for out-of-pocket expenses, such as closing costs, home inspection and appraisal fees, etc. Loan amounts from $50,000 to $350,000 on the first mortgage. Maximum Purchase Price $361,999. Other terms and conditions apply. See your loan officer for details.

2. Mortage loan approval subject to creditworthiness. Minimum loan amount is $50,000; maximum loan amount is $350,000 on the FTHB first mortgage. Maximum Purchase Price $361,999. Borrower is responsible for out-of-pocket expenses, such as closing costs, home inspection and appraisal fees, etc. 

3. Fannie Mae's HomeView™ course must be completed by all borrowers on the FTHB loan prior to approval. Completing the course does not guarantee loan approval.

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