First-Time Home Buyer
Take Advantage of First-Time Buyer IncentivesWe make buying your first home easy
Buying your first home is a major milestone—one that brings excitement and plenty of questions. Fortunately, our loan experts have been there, done that. They can help you determine how much house you can afford, and if you qualify for one of our zero-down loans.
Mortgage Rates**
We offer a variety of loans that help first-time buyers get into their homes faster, including:
Adjustable Rate Mortgage – We work with low to moderate income individuals to fund specialty loans.
0% Down Home Loan – Purchase your home with no down payment. (Creditworthiness and debt-to-income ratio will be considered for this offer.***)
USDA Rural Development Loan – This 0% down mortgage is issued through the USDA loan program for eligible rural and suburban homebuyers.***
VA Loan – Qualified veterans can purchase a primary residence with no money down.
Speak with one of our mortgage specialists now.
Before you start house hunting, you’ll want to put together a budget and calculate short and long-term costs to understand how much home you can afford. Upfront costs may include 0-20% for a down payment, 2-5% for closing costs and $200-600 for inspections. Ongoing costs include monthly mortgage payments, utilities, possible maintenance, and homeowners’ association or condo fees, if applicable.
Learn more about the homebuying process, and try out our savings calculator and many more tools to help you plan your savings goals here.
Ready with a price range, and all your financials in order? A prequalification letter from a mortgage provider will help expedite the homebuying process and let you know how much a financial institution may be willing to lend you. To apply, you’ll need to go through the standard mortgage application process, which includes questions about your income and employment, current debts, assets, and borrowing history.
Your prequalification letter will show how much you can afford to borrow, what your interest rate could be, and an estimate of your monthly payment based on assumed taxes and insurance. You may be able to lock in the rate you’ve been offered for up to several months while you’re shopping for a home, and your prequalification will help your offer stand out against other prospective buyers.
At Service CU, we’ll lock your rate for up to 90 days with no additional fee or rate adjustment.
Ready to apply? Get prequalified now.
How long does the process take?
We routinely process and close mortgage applications within 30 days. For home equity loans and home equity lines of credit, our goal is to close your loan within 10 days. However, there are many variables that determine the length of the process, including how fast you respond to our requests for documentation.
What is your minimum credit score?
For first mortgages, we generally require a score of 620 or higher, although there are some programs, such as VA, that will allow for a lower score. For equity loans and home equity lines of credit, we require a score of 680 or higher.
Do you do loans outside of NH/ME/VT/MA?
Yes, we are a national lender! We do mortgages in all states with the exception of Alaska and Hawaii. Not all programs are available in all states. Construction and land loans are available only in NH, MA and ME.
Will my loan be sold?
While it is possible that your loan will be sold (the standard Fannie Mae promissory note gives the lender the right to sell the loan), it is important to understand that we will still be servicing your loan, with the exception of state housing agency loans. Even if you loan is sold, you will still make your payments to Service Credit Union, with the exception of state housing agency loans which are serviced by the housing agency.
Can I have a co-signer?
Generally, we require a co-borrower vs. a co-signer, although some programs, such as state housing agency loans, do allow a co-signor.
Do you offer bridge loans?
We do not have a specific bridge loan program. However, we may be able to achieve a bridge loan through the use of a home equity line of credit on the house you will be selling. This will depend on the amount of equity you have and your ability to qualify to carry the debt for your existing mortgage (if any), the home equity line of credit, and the mortgage on your new home.
Do you finance mobile homes?
We do not currently offer loans on mobile homes.
Do you finance investment properties?
Yes, up to 4 residential units. Not all programs/products are eligible. Title must not be in name of a corporation or LLC.
Additional Resources
Hear From Our Happy Buyers
“I’m extremely impressed with how fast and smooth this home-buying process was with all parties involved, thank you.” – Kevin W., Sullivan, NH
“From start to finish, our refinancing mortgage was handled with courtesy and in a timely manner that was extended to us.” – Lawrence and Janet B., Wilton, NH
“I could not be happier with how Service CU handled my refi … I am truly happy I chose Service CU for all of my baking needs.” – Thomas R., Salem, NH
“Everyone did a great job. I would strongly recommend anyone to use Service CU. Thank you.” – Sergio Z, Peterborough, NH
“Excellent and professional service by all throughout the entire process. Well done.” Tim, Manchester, NH.”
*Rates shown are Annual Percentage Rate (APR). HELOC promotional rate of 6.49% APR is fixed for the first 12 months. After the promotional period, the rate will vary based on the Wall Street Journal Prime “Prime” rate published on the last business day of the month, 8.5% APR as of 7/27/23. APR may increase after the loan is closed; maximum APR is 17.125%. Minimum line of credit is $25,000. Property insurance is required. During the 10-year draw period a Home Equity Line of Credit with a balance of $25,000 and APR of 6.49% for the first 12 billing cycles will result in 12 interest only payments of $135.21. After the promotional period a balance of $25,000 and variable APR of 8.5% will result in 108 interest only payments of $177.08, followed by 179 payments of $246.87 and one (1) final payment of $245.88 during the repayment period. Payment example does not include taxes and insurance; actual payment obligation will be greater. During draw period minimum payment required is interest only. Closing costs will apply to home equity lines of credit secured by properties that are listed for sale. Properties currently on the market will be subject to credit report, title, recording, settlement, and appraisal fees (approximately $900). Certain costs associated with the transaction will be the members responsibility regardless of property listing status, including but not limited to per diem interest, taxes of any kind, and insurance premiums. Existing Service Credit Union HELOC’s are not eligible for this promotion. An early termination fee of $400 applies if paid off and closed within 36 months of opened. The fee will be waived if refinanced with Service Federal Credit Union if the borrower paid closing costs for the home equity line of credit. Other exclusions may apply, please ask your loan originator for details. Subject to credit worthiness and dwelling requirements. Must be an existing member or eligible for membership. Promotional fixed rate terms are limited to one time use. Promotion runs from 10/25/2022-12/31/23 and is subject to change or be discontinued without notice.
**The displayed rates for conventional loans assume a loan amount of $250,000 for a single-family, owner-occupied purchase transaction with a down payment of 40% and a credit score of 740 or higher. VA rates assume a loan amount of $250,000 and no down payment. Conventional jumbo loans assume a loan amount of $726,200 and a 40% down payment. VA jumbo assumes a loan amount of $726,200 with no down payment. Payment examples can be obtained by clicking the calculate payments button above and do not include taxes or insurance premiums. Payment obligation will be higher. Appraisal rebate of up to $695 will be applied for purchase loans only. A purchase loan is the financing connected to the purchase of a property involving the transfer of title from seller(s) to buyer(s). Applicant(s) will be required to pay estimated cost of the appraisal up front. Rebate will be applied as a credit at closing towards the total amount paid for the appraisal associated. Credit will not exceed amount paid and cannot be transferred or exchanged for cash equivalent. Subject to change or be discontinued at any time.
***Applicant subject to creditworthiness, debt-to-income, and property requirements. Please contact a mortgage specialist for additional program details and requirements.