First Time Home Buyer – MSUFCU Home Loans

We're here to help you with one of the biggest financial decisions you will make, homeownership. Home Loans Powered by MSUFCU mortgage lets you choose from different term lengths, rates, and down payments to craft a loan that fits your budget and needs.

Not sure you're ready to apply quite yet? The resources below will help you understand the home-buying process a little better, know what to ask, and help you get the right tools and people on your side.

Learn more about how credit impacts your mortgage here.
Learn more about how to prepare for your home loan here.
Curious about what loan might best fit your budget? Check out our mortgage calculator to get started.

With a Home Loans Powered by MSUFCU mortgage, you can choose from:

10, 15, 20, 25, and 30-year terms
A fixed or adjustable interest rate
Down payment of as little as 3%

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First time homebuyers will receive $500 off of closing costs and a house-warming gift!

Affiliated Moves

Earn Cash-Back Rewards on the purchase or sale of your home with Affiliated Moves

Apply in the Mobile App

On-the-go looking at houses? With just a few taps of your finger, you can apply for a mortgage from anywhere with our mobile app.

As Low as 3% Down

With as low as 3% down on your mortgage, you'll be able to save the rest of your money for the expenses that come with owning a new home.

Frequently Asked Questions

The State of Michigan is offering a tax deduction on dividend earnings for savings accounts of first time home buyers when funds are used for a first time home purchase. Members can save and use these funds toward a down payment of up to $50,000 through 2026. This program potentially allows first time home buyers to not have to pay income tax on the account earnings if their tax return is filed with supporting documentation.

For more information about this program, click here.

Private mortgage insurance (PMI) is a type of mortgage insurance required on mortgage loans with less than a 20% down payment. PMI offers borrowers the ability to purchase their dream home without a 20% down payment. The loan type, credit score and loan to value ratio are taken into consideration when calculating the PMI premium, which is paid monthly as a portion of the total mortgage payment. PMI remains on the loan until there is sufficient equity in the home allowing the homeowner to request cancellation. At 78% Loan to Value, PMI is automatically terminated.

The difference between a fixed rate and an adjustable rate mortgage is that, for fixed rates the interest rate is set when you take out the loan and will not change. With an adjustable rate mortgage, the interest rate may go up or down.

With our Conventional Fixed-Rate Mortgage you can select from 10, 15, 20, 25 and 30-year terms with a fixed rate for the length of the loan. A down payment of at least 3% is required.

With our Adjustable-Rate Mortgage your home loan will be at a lower rate for the first 3 to 5 years. Adjustable-Rate Mortgages are perfect for short-term home ownership, large payments towards the loan in the first few years, or for members simply looking to save money with a lower fixed rate for the first 3 to 5 years. Select from 7-1, 5-1, 3-1, and 5-5 ARMs for a 30-year term. The monthly payments are based on a 30-year amortization, and can change throughout the life of the loan. After the initial term, the interest rate adjusts higher or lower based on the 1 year US Treasury market. The rate changes are limited to an increase or decrease of up to 2% at each annual adjustment, and subject to both a minimum rate (floor) and maximum rate (ceiling) over the life of the loan. Our Mortgage Loan Officers can help you identify which option may be best for you.

A mortgage pre-approval means your application has received an initial review and approval. In many cases, our online application system can issue an immediate pre-approval. You may be asked to provide some basic financial documentation such as paystubs and W-2's. The loan officer will review your credit report and application to determine your ability to repay, credit worthiness, and the terms requested. A pre-approval letter from your loan officer demonstrates to the real estate agents and the sellers that you are a serious and qualified buyer. Mortgage pre-approvals are good for 120 days from the date of the credit application.

You will need to schedule an inspection, order an appraisal, and request a homeowners insurance quote.

After you have received an accepted offer, determine if you will have a home inspection for the structure and pests, as well as a radon test. After the inspection has been completed we will order the appraisal and title work.

You will also want to begin obtaining homeowners insurance quotes early. This will give you adequate time to compare quotes and determine if your insurance agent will need to visit the property.

View additional information on funds needed for closing and view some helpful reminders.

Privacy Notice, Consumer Caution and Home Ownership Counseling Notice, Electronic Correspondence Disclosure and Agreement, Mortgage Information, Nationwide Mortgage Licensing Systems IDs, Home Mortgage Disclosure Act Notice, Consumer Handbook on Adjustable-Rate Mortgage, CFPB Your Home Loan Toolkit, Reconsideration of Value

Purchases only. Members who are approved for a new mortgage of $100,000 or more receive $500 off closing costs. Offer cannot be used toward down payment or with any other discounts and is not available on home equity loans or lines of credit. All usual and customary fees will be charged to the buyer. All loans are subject to credit approval. May not be combined with any other mortgage offers. Offer void if transferred, sold, or replicated in any way. Eligible properties include primary residences; owner-occupied second homes; condos; modular homes; and one-to two-unit buildings (one-to four-unit buildings in Ml) with owner occupancy in one of the units.

Home loans available for homes in the following states: Michigan, Alabama, Arizona, Colorado, Florida, Georgia, Illinois, Indiana, Kentucky, Minnesota, Missouri, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Virginia, Washington, and Wisconsin. Construction home loans are available in Michigan and Illinois. Rates are based on creditworthiness, loan-to-value (LTV), property type, and other factors associated with your loan application, your rate may be higher.

APR is annual percentage rate, and is subject to change. Your rate will depend on your credit score and the term. The loans subject to credit approval.