First Time Home Buyer Loans
Home loans that match your budget and goals. Our First Time Home Buyer Program is here to guide you through the home buying process and help you choose a home loan that matches your budget and goals. Get a great rate and choose from a range of home loan options including fixed-rate and adjustable-rate mortgages with flexible terms.
Benefits of Our Alabama First Time Home Buyer Program:
We’ll offer you an interest rate based on your chosen loan type, term, and financial situation.
With terms of up to 30 years, you can choose the right repayment timeline to suit your needs.
Fixed-Rate or ARM
A fixed-rate loan offers steady payments while an adjustable-rate mortgage has lower initial rates.
Our mortgage team is here to listen to your unique needs and answer all your specific questions.
Details About Our First Time Home Buyer Program
As a first-time home buyer in Alabama, you have many options on the table. Legacy Credit Union can help you navigate the different types of loans so you get the right mortgage for you and your family.
- We’ll help you secure the best annual percentage rate (APR) possible.
- An adjustable-rate mortgage (ARM) offers a lower rate and payment to start your loan.
- Our 5/1 ARM means your rate and payment are fixed for five years then they adjust each year.
- With a fixed-rate home loan, you can choose terms of 10, 15, 20, or 30 years.
- Longer terms bring more affordable payments.
- Shorter terms mean you’re mortgage-free faster with lower rates and less total interest.
Whatever your situation, Legacy Credit Union can make sure you have a stress-free experience as a first-time home buyer.
Legacy Credit Union First Time Home Buyer Rates
|Adjustable-Rate Mortgage||5/1 ARM||6.00%||6.367%***|
|Fixed-Rate Mortgage||10 Year||6.500%||6.944%****|
We Make It Easy for First Time Home Buyers to Apply for a Loan
Provide your personal and financial details via our secure online portal and we’ll soon let you know if you’re eligible for a loan.
We’ll discuss your best loan options, terms, and your likely rate so you can take the next steps with confidence.
Find Your Home
With your financing ready, Realtors and sellers will take you seriously and you can look for homes within your budget.
“I love them, EXCEPTIONAL customer service!”
– P. Mc, Birmingham, Alabama
FAQs About Our First Time Home Buyer Program, Alabama
Answer: As part of our First-Time Home Buyer Program, you get access to all the Legacy home loans we offer to repeat buyers, including fixed-rate mortgage loans and adjustable-rate mortgage (ARM) loans. Plus, you get a choice of loan terms and we’ll work with you to secure a competitive interest rate.
The main difference is that we offer our first-time home buyers additional guidance and information so you can feel confident throughout your home buying journey and through each step of the closing process.
Answer: You may think a 30-Year Fixed-Rate home loan is your best option because it’s very popular. But an adjustable-rate mortgage (ARM) can be a good choice when market interest rates are high, or if you’re only planning to be in your home for a short time.
- A fixed-rate loan offers steady payments and easy budgeting over your chosen loan term of 15, 20, or 30 years. Terms of 10 years are generally for a mortgage refinance only.
- Longer terms give more affordable payments while shorter terms save on time and interest.
- An ARM offers a low, fixed rate for an agreed-upon period and then your rate adjusts (up or down) with the markets on a schedule. For example, 5/1 is fixed for 5 years then it adjusts each year.
- Your payment is usually lower for an ARM than for a fixed-rate loan during the initial period.
For a limited time, Legacy is offering a Special Program 5/1 Adjustable Rate (ARM):
- 6.00% Rate, 6.367% APR Up to 95% LTV.
- No Origination Fee.
- PMI on LTVs greater than 80%
- Requires 720 minimum credit score and debt to income not to exceed 43%.
- Rates are subject to change without notice.
Answer: Buying a home can be confusing because there are many different terms and abbreviations you need to remember so you understand exactly what home loan you’re getting. Here are a few of the most common phrases:
- LTV is the loan-to-value ratio, which measures how much you’re borrowing compared to the appraised value of the property you’re buying. If your LTV is 80%, you made a down payment of 20%.
- DTI is the debt-to-income ratio which is how much total debt you have compared to your total income. Lenders want you to have a DTI under 43% but some loan programs may allow for higher ratios.
- PMI is private mortgage insurance. You usually need to pay this if your down payment is under 20% and you have a conventional mortgage, not a government-backed loan.
Answer: You will need to pay closing costs on your home loan, which you can pay upfront or some or all of the costs may be rolled into your principal or included in your APR. The fees you need to pay and the amounts will vary depending on what home loan you choose.
Legacy is here to help make the homebuying process easier and we’ll make sure you fully understand your closing costs before you finalize your loan. Costs may include:
- A loan origination fee. This may be 1% of your loan amount or it may be waived depending on your loan type.
- Underwriting and processing fees. These are charges for checking all your financial information and documents.
- Title search and title registration fee. This checks there are no existing liens on your property so you don’t get landed with debt later.
- Inspection fees. It’s a good idea to have your home inspected to check for any issues.
- Appraisal fees. You may need to get your home appraised to check if the current market value of your home matches the selling price.
- Property taxes. You may need to pay taxes in advance and they may be held in an escrow account.
Learn More About Our Home Loan and Home Equity Options
Choose from a fixed-rate or adjustable-rate mortgage (ARM) and find the right loan term to suit your goals.
Home Equity Line of Credit (HELOC)
Get a ready source of funds and only pay interest on the portion you use. Cover all your costs!
Home Loan Refinancing
Find out if you qualify for a lower rate or change your term so you get a better payment for your financial situation.
*The interest rate, annual percentage rate (APR), origination fees, discount points and closing costs are subject to change without notice.
**Your APR will vary based on your final loan amount, credit history, loan to value, margin, and finance charges.
***5/1 Adjustable Rate (ARM). Up to 95% LTV. No Origination Fee. PMI on LTVs greater than 80%. Requires 720 minimum credit score and debt to income not to exceed 43%. Rates are subject to change without notice.
****Quote is a score of 720 and Loan Amount of $150,000 at 80% LTV