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MAFCU Mortgages
Get $500 Off Closing Costs
Get $500 off closing costs when you get a mortgage with us, for qualified borrowers. For more information, call Mike Shuman, Vice President of Lending, at 617-278-5615.
Great Mortgage Options at MAFCU
Mike Shuman (r) with member
MAFCU offers members a full range of mortgage products to suit members' different needs. Here are three mortgage programs you should know about:
- Refinance Stimulus PLUS Program. If your mortgage is currently owned by Fannie Mae or Freddie Mac you may be able to refinance even if you have limited or no equity. Restrictions apply.
- FHA mortgage financing. Borrowers are able to put down as little as 3.5% of the purchase price. Down payment can come from a gift from a relative or close family member.
- USDA mortgage financing. This program allows for zero-down financing. There are income and property location restrictions.
The lending experts at MAFCU and Drew Mortgage are available to work one-on-one with members. In addition, the Credit Union offers free seminars on various mortgage topics each month at MAFCU's Lending Center in Dorchester and at affiliates.
"Many details arise during the home-buying process," says Paul Sapienza, Executive Vice President at Drew Mortgage, MAFCU's lending partner. "When MAFCU members are equipped with the right information, those details can work for them, not against them."
For more information or to speak to one of MAFCU's lending experts, call 617-278-5600 and press 2. For a complete list of upcoming mortgage seminars, click here.
Mortgage 101: Definitions and Concepts for Home Buyers
Credit: A good to excellent credit history is expected. This means no collection amounts, charge-offs, or civil judgments. If someone has a bankruptcy on their credit history, he or she needs to re-establish credit before getting a mortgage, and a larger down payment may be necessary.
Closing Costs: Fees charged for services involved with the house sale including processing the load, the title, the deed, and other important paperwork. The amount varies, averaging 2 to 3% of the purchase price of the house.
Cash Down Payment: Minimum 5% cash down payment, plus cash for closing costs is required. Private mortgage insurance is required for mortgages with less than 20% down. Reserves in the form of cash or retirement accounts of at least two and sometimes three months is required. These funds must be saved by the borrower. The source of any large deposits must be documented. Drew Mortgage can help MAFCU members with 3.5% cash down for FHA loans.
Cash Flow: Borrowers need sufficient income to support the proposed mortgage payment of principal, interest, taxes, insurance (or condo fee) and, if less than 20% cash down payment, private mortgage insurance plus other monthly obligations including car loan, credit card payments, personal loans, student loans, alimony, child support, union dues, and any co-signed loans. This calculation is also called a debt-to-income ratio.
Collateral: The property will be appraised to ensure sufficient value.
Equity Position: For refinancing of an existing mortgage, the owner must have equity and owe less than the value of the property as a buffer against potential reduction in property values.
Employment: Must have at least one year at present place of employment, preferably longer. Stable work history is preferred.
Conforming Adjustable Rate Mortgages (ARM)
A variety of conforming adjustable rate mortgages (mortgage not to exceed conforming mortgage limits, 80% loan-to-value ratio)
Conforming Fixed Rate Mortgages
Conforming fixed rate mortgages for 15, 20, or 30 years (mortgage not to exceed conforming mortgage limits, 80% loan-to-value ratio)
Jumbo Mortgages
Call our Loan Department at 617-278-5600, option 2, for information
Making Home Affordable
If you pay your mortgage on time but are currently struggling to make payments, the federal government may be able to help. To see if you are eligible for a government-subsidized mortgage modification or refinance, visit: www.makinghomeaffordable.gov.
