Are you dreaming of becoming a homeowner but don’t know where to start? Or maybe you're already a homeowner with equity built up in your home and looking for ways to achieve your financial goals? Join us as we chat with Jose Pascual, PSECU’s Head of Mortgage and Commercial Banking, to learn about the new and current products available to homebuyers and homeowners.
What programs or products are available to those looking to buy their first home?
Within the last year, we were able to evaluate our members’ needs and develop our First-Time Homebuyer mortgage*. This unique product is specifically designed to provide help to those looking to purchase a home for the first time.
Can you explain the First-Time Homebuyer product a bit further? How does it differ from other mortgage products in the market?
PSECU’s First-Time Homebuyer product really exceeds other mortgage products in the market in several ways. First, it offers up to 100% financing, meaning that qualifying buyers can purchase their home without a down payment. Secondly, it allows up to 3% seller’s assistance, which can help buyers cover some of the closing costs. And our First-Time Homebuyer product doesn’t require private mortgage insurance (PMI), which can save homebuyers money in the long run. Additionally, there are no income limitations, which really makes it accessible to a wide range of buyers, and members don’t have to pay for the appraisal. These features and benefits really set it apart from others in the market.
What other financing options are available to those looking to purchase their dream home?
We have various products available to those looking to buy a home. If you’re a homebuyer and want lower interest rates upfront, our adjustable-rate mortgages (ARMs) might be your option. With ARMs, the interest rates change over time based on the market.
We also offer other fixed-rate mortgages, which have a fixed interest rate for the length of the loan. These rates are locked in and do not fluctuate with market conditions. This is a good option for someone looking for predictable monthly payments with term periods from 10 to 30 years.
In addition, say you’re in the market for a mortgage that exceeds a typical loan limit; we can offer jumbo loans both as jumbo adjustable-rate mortgages and jumbo fixed-rate mortgages.
This all sounds amazing for new homebuyers! For someone preparing to buy a new home or refinance their current home, what steps do you recommend they take to begin the process with PSECU?
First, I’d recommend joining PSECU if you’re not a member already. You don’t have to join to get prequalified or apply for a mortgage, but you do need to be a member before you close on a mortgage. We have an excellent team of mortgage consultants who can help walk you through the process. You can contact them at psecu.com/loans/mortgages/meet-our-team.
It’s worth noting how proud I am of our mortgage team. Because of their hard work and dedication, we earned recognition as a 2023 Top Credit Union Mortgage Originator by the American Credit Union Mortgage Association. In just two years, PSECU climbed 54 positions to rank #56 out of 300 credit unions, which is amazing! Our team takes great pride in helping members achieve their homeownership goals. When you choose PSECU for your mortgage needs, you can trust that you’re in good hands with our team.
Okay, shifting gears a little bit to homeowners. Homeowners often see references to home equity loans or lines of credit. But what are these types of loans exactly?
Home equity loans and lines of credit – which we call HELOCs - can be great options for homeowners who are looking to borrow money with a loan that’s secured using their home as collateral. At PSECU, we have great home equity options available.
First, our Real Estate Equity Loan is a lump sum of money that you receive up front, and you'll make fixed monthly payments over a set period of time, just like a traditional mortgage. For example, if you have a couple of loans and maybe some credit card debt that you’d like to consolidate into a single monthly loan payment, a Real Estate Equity Loan might be a good option for you.
Our HELOC Plus product, on the other hand, is a line of credit that you can draw from as needed, up to a certain limit. With a HELOC, you have more flexibility to borrow as much or as little as you need, and you only make payments on what you borrow. So, one scenario of this would be if you’re looking for a way to help your child with their college tuition, you can tap into your home’s equity and borrow only what you need for things like textbooks, tuition, housing, meal plans, and more.
What are some common uses for a Real Estate Equity Loan or HELOC?
Homeowners often use HELOCs to make home improvements, consolidate debt, or pay for tuition, but it can be used to fund a variety of other things like vacations, medical expenses, wedding expenses, or even a new furniture or outdoor patio set.
How much can I borrow with a home equity loan or line of credit?
The amount you can borrow will depend on a few factors, including the amount of equity you have in your home and your credit score. Most lenders will allow you to borrow up to 90% of your home's value minus any outstanding mortgage balances.
How do I apply for a Real Estate Equity Loan or HELOC?
To apply for a home equity loan or line of credit, visit psecu.com/homeequity and fill out the online application. You'll need to provide some basic information about your home and your finances, and we'll take care of the rest.
*Additional options for first-time homebuyer products/terms available. PMI may be required. Contact one of our mortgage consultants to find out which one is right for you. Equal Housing Lender.