First-Time Homebuyers

Loan Features & Benefits

Various Loan Terms Available

No Private Mortgage Insurance (PMI) Required

Most lenders add Private Mortgage Insurance² to your monthly payment if you don’t have at least a 20% down payment. We do not require PMI when you take advantage of these second mortgage loans, which will save you money each month. As a bonus, the interest you pay on your loans can be tax deductible*.

Get Additional Perks with Our Home Rewards Program

With our Home Rewards Program,³ you can get access to MLS listings, be paired with a realtor in the area you’re looking, and even get a 20% commission rebate⁴ which can help pay for the closing costs. Click here for more Home Rewards information.

We’re Here For You, Every Step of the Way

If you have any questions or want to apply, our team of mortgage loan officers is here to help. Give them a call at 888.800.3328.

• What do I need to know before buying a home?

  Knowledge is power. The more prepared you are, the easier the process will be. First Entertainment has a collection of free financial resources to help you through every step of the homebuying process. These tools will help give you the confidence to make informed decisions when buying your first home.

  Home Ownership Classes.⁸ Explore the costs and benefits of buying and owning a home, from purchasing to closing, including finding a mortgage that fits your budget, and more. Visit our Financial Education Center to learn more.

  First-Time Homebuyers Webinar. For members who prefer to watch a video, our pre-recorded webinar details the home buying process from beginning to end.

• Financing terms. Here are some terms you'll encounter during the home-buying process:

  Annual Percentage Rate (APR): The yearly rate of interest for your loan, which can be variable or fixed.

  Debt-to-income ratio: The percentage of your monthly income that you spend on debt payments. Typically, lenders want your total debt level at or below 43% of your gross monthly income.

  Down payment: The initial payment you make when purchasing a home, typically 20% of the purchase price.

  Fees: There are a variety of fees that a homebuyer is expected to cover including (but not limited to) the following:

  • Appraisal fee
  • Home inspection fees
  • Credit report fee
  • Document preparation fee
  • Loan origination fee
  • Title fees
  • Taxes

  Interest rate: What the lender charges you to borrow money. Interest rates are based on current market conditions, your credit score, the amount of your down payment, and the type of mortgage you choose.

  Loan term: The amount of time you have to pay off your loan. Generally, the longer your loan term, the more interest you will pay. Loans with shorter terms usually have lower interest rates but higher monthly payments.

  Monthly mortgage cost: Commonly referred to as PITI (Principal, Interest, Taxes, Insurance), many mortgage lenders estimate these costs to help determine whether you qualify for a mortgage:

  • Principal: The actual amount of your loan before interest.
  • Interest: What you pay the lender for the borrowed funds.
  • Taxes: The part of your payment that pays the property taxes charged by your local government.
  • Insurance. The amount of your payment that covers homeowner’s insurance to protect against losses from property damage.

  Mortgage payment calculations can also include monthly homeowner's association dues.

  Origination fee: The fee that lenders and brokers charge for processing the loan from application to closing.

  Points: An upfront fee you can pay to reduce your interest rate. One point equals 1% of your mortgage amount.

  PMI (Private Mortgage Insurance): Borrowers with less than a 20% down payment are required to purchase PMI, so the lender is protected from default.²

• What should I do before searching for a home?

  While shopping for a home is the fun part, you’ll want to ensure you take care of the following before you begin:

  Check your credit history. Get a current copy of your credit report to ensure it’s in good shape and address any outstanding issues that could present a problem in getting a mortgage. You’ll want to get reports from all three major credit reporting agencies: Experian, Equifax, and TransUnion.

  Determine your down payment. To make your monthly payments more manageable, at least 20% of the purchase price of the home is suggested, or you will be required to get Private Mortgage Insurance (PMI) which will increase your mortgage costs each month.²

  Calculate a monthly payment you can afford. Use our payment calculator to estimate your monthly payments to ensure you don’t exceed your budget. Remember to add in an amount for property taxes and homeowner’s insurance.

  Get pre-approved. Before shopping, it’s best to know how much money you can borrow (this will also help determine an affordable price range). There is no cost or obligation to get pre-approved for your mortgage. Apply now.

  Understand your down-payment options. Borrowers can put down as little as 5% down with Private Mortgage Insurance (PMI). PMI is arranged by the lender and provided by private insurance companies. PMI is usually required when you have a conventional loan and make a down payment of less than 20% of the home’s purchase price.

• How do I find a reputable realtor?

  Sign up for our Home Rewards Program³ and we’ll connect you with a trusted real estate agent in your area to help you through the process and guarantee a safe sale/purchase. Plus, once you enroll, you’ll get access to our exclusive home search⁴ website to view MLS listings, get notified of new listings by email, and qualify for a 20% commission rebate on your home purchase.⁵ The Home Rewards Program has saved our members more than $40,000 since it was launched.⁶

• What types of mortgages are available?

  Conventional loans, or a loan that’s not backed by the federal government, are the most common mortgages. Some lenders offer non-conventional mortgages sponsored by agencies like the FHA (Federal Housing Administration) and VA (Veterans Affairs), to help people purchase houses with limited or no down payment. Both types include fixed-rate and variable-rate loan options.

  First Entertainment Credit Union Mortgages*

  Mortgage Type	Features	Benefits
  Fixed-Rate	10, 15, 20, 30-Year terms For purchase or refinance of your home Loan amounts from $65,000 to $5,000,000 30 or 45-day rate lock Loans for single-family homes and multi-units (2-4), condominiums, townhomes, and planned unit developments Loans for second home and investment property available	Stable, consistent monthly payment
  Adjustable-Rate	Fixed payments for 3, 5,7, or 10 years, then adjusts annually thereafter, amortized over 30-Year term For purchase or refinance of your home Loan amounts from $65,000 to $5,000,000 30 or 45-day rate lock Loans for single-family homes and multi-units (2-4), condominiums, townhomes, and planned unit developments Loans for second home and investment property available	Start with a lower monthly payment Can take advantage of lower rates Better borrowing option for short-term residences
  Hybrid 5/5 Fixed/Adjustable – Rate	Fixed payments for 5 years, then adjusts every 5 years, thereafter, amortized over 30-Year term For purchase or refinance of primary and secondary home or investment property Loan amounts from $65,000 to $5,000,000 30 or 45-day rate lock Loans for single-family homes and multi-units (2-4), condominiums, townhomes, and planned unit developments	Start with a lower monthly payment Can take advantage of lower rates Better borrowing option for short-term residences

  * All loans are subject to credit, income, and collateral approval. Not all members will qualify. See Mortgage Rates for current rates and terms.

• Will someone help me through the financing process?

  Absolutely! We provide members with the highest level of service to help you navigate the home loan process from start to finish. You can reach our Loan Officers directly by visiting our online Mortgage Center.

• What documents do I need to get a mortgage?

  Once your loan application goes into underwriting, where we review your information for the requested loan, you may be asked for additional documents such as:

  • W-2 forms from the past two years (possibly more if you’ve changed employers).
  • Pay stubs from the past 30 to 60 days.
  • Proof of other sources of income (including documentation of any gift money).
  • Federal income tax returns from the past two years. (If you own your business, you’ll need to provide these as well, plus year-to-date profit and loss statements.)
  • Recent bank statements (usually for the last couple of months).
  • Details on long-term debts like student loans.
  • ID and Social Security Number.
  • Confirmation of property.

  Tip: Uploading necessary documents is easy when you create a Mortgage Center Account. Signing up is easy. Just head to the Mortgage Center and click the Create a Mortgage Center Account button to get started.

• Do I need homeowners insurance to get a mortgage?

  Yes, you will need to obtain a home insurance policy. Make sure the policy will fully replace the value of the home, effective as of your closing date.

  Our Media Benefits Insurance Services (MBIS) agents are highly experienced and specialize in finding you the ideal coverage for the best rate.⁷ You can schedule a time to speak with a MBIS agent over the phone.

Start Your Home Story Today

• Check out our daily rates and lock in a low rate at any time at no cost.⁸  

• Apply with our easy online application to get pre-approved for free. 

• Contact one of our mortgage experts to apply. 

*Not intended as tax advice. Please consult your tax advisor.

¹ Loans are subject to credit approval, and not all members will qualify. Certain terms and conditions may apply. Eligible home loans only for California properties. Current home loan rates are available online at Mortgage Rates and HELOC rates or by contacting the Credit Union at 888.800.3328.

² Private Mortgage Insurance (PMI) is required when the loan-to-value (LTV) on a Mortgage Loan is greater than 80%. Special exceptions for first time home buyers may apply.

³ The Home Rewards Program is offered through Home Rewards Group, Inc. Home. Home Rewards Group, Inc. is not affiliated with First Entertainment Credit Union. The material is not operated by First Entertainment, and First Entertainment is not responsible for the content, which may not always represent the Credit Union's views. This does not constitute endorsement of any product, service, or organization. First Entertainment Credit Union's Privacy Policy does not apply to third parties. 

⁴ Rebate is awarded by Home Rewards Group, Inc. to buyers and sellers who select and use a real estate agent in the Home Rewards network. Rebate is 20% for purchase only of a residential property. Payment is credited to your benefit at the close of transaction. Using First Entertainment for a mortgage loan is not a requirement to earn the rebate. Purchase price must be greater than $150,000. All rebates are subject to limitations, lender guidelines, state laws and other requirements. Certain properties may not be eligible for rebates. Please consult a qualified tax professional for advice on tax implications from receiving a rebate.  

⁵ The information provided is for personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of Multiple Listing Services (MLS) data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained therein may or may not have been the Listing and/or Selling Agent. First Entertainment Credit Union is not a broker/agent and is not affiliated with HomeSmart Evergreen Realty. 

⁶ Data provided by Home Rewards Group and valid as of March 1, 2022. 

⁷ Insurance services offered through Media Benefits Insurance Services CA Lic#0H99393, a DBA for Media Benefits Corp., which is a wholly-owned subsidiary of First Entertainment Credit Union. 

8 First Entertainment Credit Union has partnered with EverFi to provide this resource to assist members in being informed about personal finance and best practices. The material is not operated by First Entertainment, and First Entertainment is not responsible for the content, which may not always represent the Credit Union's views. This does not constitute endorsement of any product, service, or organization. View the EverFi Privacy Policy at https://everfi.com/privacy.