Smart Start FAQs
Q: Can the entire downpayment and closing costs come from a gift, and who can provide a gift?
A: Yes. There are no gift limits and gifts are allowed by parents only.
Q: Can a parent cosign to help the first-time homebuyer qualify for the loan?
A: No. The first-time homebuyer needs to qualify on their own for the loan. However, if a parent wants to cosign, you’ll receive a 0.25% rate discount* for the life of the loan.
Q: Is pre-purchase counseling or an education course required?
A: No. Counseling and education are encouraged but not required.
Q: Are there any property restrictions?
A. No multi-family, rental or investment properties are allowed. Property must be owner-occupied, single units only (for example, single family homes, condominiums and townhomes). And they can be purchased anywhere CCU offers first mortgages.
Q: Are there income limits or a maximum loan amount?
A: No. Unlike many other first-time homebuyer programs that have income and loan amount limitations, Smart Start doesn’t.
Q: Who can take advantage of the program?
A: First-time homebuyers who have never owned a home or haven’t had ownership interest in a home in the last 3 years.
What is PMI?
PMI is Private Mortgage Insurance. It is typically required by lenders when someone puts less than 20% down on the price of a house they want to buy. This usually comes as an added monthly expense in your mortgage payment. Smart Start does not charge PMI, saving you money and reducing your monthly payment.
What is an ARM?
An ARM is an Adjustable-Rate Mortgage. It is a home loan where the interest rate can change. It depends on the market. Some of the benefits of an ARM include:
- ARMs could help members qualify for a slightly higher loan amount and increase their buying power.
- They may also help members qualify with less down and a lower monthly payment.
- Lastly, ARMs could allow members flexibility that best suits their homeownership goals with a shorter-term fixed rate option.