State Employees’ Credit Union’s (SECU’s) First Time Homebuyer’s Mortgage Loan program has reached a milestone, with over $1 billion in loan balances. The program has now helped over 8,300 Credit Union members realize their dream of homeownership.
For a quarter of a century, SECU has offered viable loan options to eligible first time homebuyers, helping them finance their first home purchase. Unlike conventional mortgage loan requirements, the Credit Union’s First Time Homebuyer’s program enables qualified members to borrow up to 100% of the purchase price for a primary residence. The average loan amount under the FTHB program is approximately $180,000. The program is available with SECU’s 2-Year and 5-Year ARM products for a term of up to 30 years. Competitive interest rates and low settlement costs, along with no origination or credit report fees and no private mortgage insurance requirement provide significant savings for first time Credit Union borrowers. Many young SECU members have used the 100% financing option to gain a head start on the benefits of homeownership.
Minimal losses have been incurred by the Credit Union over the program’s 24-year history. Even in the midst of the great recession, with unemployment still hovering around 9% in North Carolina, net charge-offs in the FTHB program over the past 12 months averaged just .29%, with 60-day delinquency below 2%.
Spencer Scarboro, SECU Senior Vice President of Loan Originations comments, “We are very pleased the First Time Homebuyer’s Mortgage Loan program has proven to be of great benefit to our members’ mortgage financing needs for more than two decades. Our goal as a financial cooperative is to offer safe and affordable loan options to best serve the overall needs of our membership. SECU’s achievement of serving 8,300 members with $1 billion in loan balances while incurring minimal losses is true evidence of the program’s viability and success. SECU, as a locally-owned financial cooperative, has many ways of providing unique, fair, consumer-focused services to North Carolina communities; the First Time Homebuyer’s program is an excellent example of that difference!”