First-Time Homebuyer Loan
Canyon View Credit Union's First-Time Homebuyer Loan is designed to help new buyers achieve homeownership with an affordable, attainable loan. It's also a great option for homebuyers with fewer available funds for a down payment or those with a lower credit score.
First-Time Homebuyer
Buying your first home is an exiting time, but it can also be stressful. Our experienced mortgage
consultants are here to help you through every step of the process. From searching for your home, to securing your home loan, our
team is here to support you.
Our First-Time Homebuyer Loan was created to help new homebuyers
achieve the dream of homeownership, but it's not just available to first-time buyers. For mortgage loans, "first-time" homebuyers are defined as
anyone who:
- Has not owned a home in the last three years
- Has owned a home, but only with a former spouse
- Has only owned non-permanent homes or permanent homes that did not comply with building codes
Our First-Time Homebuyer Loan may also be available to those with limited funds for a down payment or those with lower credit score. To obtain a Canyon View Credit Union First-Time Homebuyers Loan, applicants must use the loan for a primary residence.
Speak With A Mortgage Consultant
Canyon View Credit Union First-Time Homebuyer Program
Today's Rates
Benefits
- Smaller down payment
- Up to 100% financing available
- Down payments as little as $1,500
- No Private Mortgage Insurance required on non-FHA loans
- Various financing options for unique financial needs
- No income restrictions
- Loan amounts up to FHFA conforming limits
- Seller can contribute up to 3% toward closing costs
- No prepayment penalties
- access to federally-backed loans, state programs, tax breaks, and lower down payments.
Get the loan you need for your dream home!
- Terms from 10 to 30 years
- Borrow up to 100% of the value of your home
- Competitive Rates
Eligibility
- Has not owned a home in the last three years
- Has owned a home, but only with a former spouse
- Has only lived in non-permanent homes (such as mobile homes), or permanent homes that did not comply with applicable building codes
- Loan must be used to purchase the owner's primary residence
- Conventional loans require a minimum credit score of 620
- FHA loans require a minimum credit score of 640 with a 3.5% down payment
- VA loans require a minimum credit score of 620
MLS Home Search
Your dream home is waiting for you. Using our online MLS home finder, you can search through thousands of homes for sale in your area.
First-Time Homebuyer FAQ
Who is considered a first-time homebuyer?
A first-time homebuyer is anyone who hasn’t owned a primary residence for three years or more.
How do you apply for a first-time homebuyer loan?
To apply for a first-time homebuyer loan, you will want to first get pre approved by a lender. The lender will check your credit history and then will need to verify your income and assets. You’ll need to provide the following for financial verification:
- Recent pay stubs
- Most recent W-2 form
- Last two years of tax returns
- Bank statement
- Proof of down payment
Additional items may be required depending on an individual’s unique situation. Canyon View Credit Union offers competitive rates for all types of mortgages! If you’re unsure of where to begin, get in touch with one of our experienced mortgage consultants and we’ll get your journey to home ownership started!
How much can first-time home buyers afford?
Shop for homes that have a purchase price equal to 2.5x your salary or household income. Other experts suggest people should be able to afford up to 28% of their gross income.
When you speak with one of our mortgage consultants, we’ll go over your budget and find a monthly mortgage payment that is comfortable for you. We will also review your current credit standing to determine where we can improve it in order to help you get the best rates and the lowest costs. With a pre-approval letter in hand, you can begin shopping with your realtor.
Once you have found your dream home, we will guide you through every step of the appraisal, inspection, and closing processes. This includes breaking down all of the costs associated with your purchase, including down payments, closing costs and escrow setup.
We want to make sure that your first-time home buying experience is a positive experience. We do this by staying in constant communication with you throughout the process and by actively ensuring you are well-prepared for every step.
What credit score do you need to buy a house in
Utah?
The general rule is that your credit score should be above 620 in order to buy a house. However, this rule is flexible for those applying for FHA or VA loans.
How Does Credit Score Factor Into A First-Time Home
Loan?
A person with a credit score in the upper 500s will have a higher rate than someone that has a credit score in the lower 700s, which means a higher monthly payment. And it could be the difference of hundreds of dollars a month. On top of the rate, you also have mortgage insurance to consider. Mortgage insurance is the payment given to lenders for taking on the risk of a mortgage with a low down payment. Your mortgage insurance is also determined by credit score and will be less for those with a better score.
If you’re looking to buy a home soon, it’s important to get familiar with your credit score as soon as possible. Do you have a good credit score (typically around 680 or better) or does it need some work? If you want to get it higher, here are a few tips for improving your score.
Credit score plays a big role in buying a house. To maintain a good credit score to buy a house, make your payments on time. Late payments can have a very negative effect on your score.
Pay off your debts as well. You don’t need to remove all your debt but the better debt-to-income ratio you have, the better your credit score will be so that you can buy a house.
Establish a credit history. Having no credit history can be almost as bad as no credit. If you need some credit history, it might be time to think about getting a small loan or credit card that you can make payments on. This allows lenders to see a history of on-time payments and makes you less of a risk.
Other Resources
Still Have Questions?
If you have more questions about the logistics of first-time home buyer loans, contact our team today. We look forward to helping you secure your new home loan.