Purchase
Whether you are looking to move into a larger home, right-size or buying your first home, KeySavings Bank is a One-Stop bank for all of your home-purchase needs: Below are a few of our products:
In-House Program: We can lend to 90% loan-to-value with no private mortgage insurance. We underwrite this loan using common sense principals which allow for more variables to be considered. We have programs for owner and non-owner occupied homes.
Conventional Financing: A conventional loan is a mortgage loan that’s not backed by a government agency. These loans come in all shapes and sizes, and while they don’t provide some of the benefits as FHA, VA and USDA loans, conventional loans remain the most common type of mortgage loan. Often times a conventional loan use private mortgage insurance (PMI) allowing for financing as high as 97% loan-to value and at very affordable rates. An example is Fannie Mae (FNMA).
FNMA: Fannie Mae’ Home Ready allows for expanded credit for eligible borrowers and supporting sustainable homeownership. How? By providing 97% loan-to-value (LTV) financing options that help lenders better serve first-time homebuyers.
Eligibility and Terms
3% down payment:
- 1-unit principal residence, including eligible condos, co-ops, PUDs, and manufactured houses to 95% LTV
- Fixed-rate mortgages with a maximum term of 30 years are eligible (restrictions apply)
- Reserves may be gifted
- Combined LTV up to 105% provided subordinate lien is an eligible Community Seconds® loan
- Requires homeownership educations and counseling
Low Down Payment Programs:
FHA: An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. FHA home loans require lower minimum credit scores and down payments than many conventional loans, which makes them especially popular with first-time homebuyers.
WHEDA: WHEDA normally requires a 3% down payment, but in special cases, they can grant a 0% down payment loan. How? With the help of a unique WHEDA program called an Easy Close Second. The Easy Close Second is a fixed-rate second mortgage that you pay back over 10 years. The interest rate on the Easy Close Second is the same as the Note Rate on your WHEDA first mortgage.
Types of WHEDA loans offering <20% down payments:
- 0% to 3% down with reduced-cost Private Mortgage Insurance (PMI)
- 0% to 3% down with no monthly PMI
- 3.5% down with FHA (government mortgage insurance)
Veterans Administration (VA):
- No downpayment required
(*Note: Lenders may require downpayments for some borrowers using the VA home loan guaranty, but VA does not require a downpayment) - Competitively low interest rates
- Limited closing costs
- No need for Private Mortgage Insurance (PMI)
- The VA home loan is a lifetime benefit: you can use the guaranty multiple times
Alternative Products:
Bank Statement Loans: A bank statement program is a home loan program that uses bank statements to calculate a borrower’s income. This is an alternative documentation loan type instead of using tax returns and W-2s in the qualification process. These loans are for self-employed borrowers who typically have substantial tax write-offs that make it challenging to demonstrate the necessary income to prove their ability to repay the loan. The bank statement loan programs use either personal or business bank statements to qualify borrowers.
ITIN Loans: ITIN loans are a unique kind of loan for individuals that may not have the traditional documentation needed to obtain mortgage loans. ITIN loans can be a suitable option for individuals who do not have a Social Security Number. Using their ITIN, these individuals have a path toward homeownership as they can get a mortgage loan with their ITIN.
DSCR Loans: Buying an investment property allows you to generate income through the renting or resale of a property that isn’t your primary residence. DSCR loans are key for investors when analyzing real estate investment opportunities. DSCR loans do not require borrowers to qualify on their income but rather on the rent forecasts on the subject property.
JUMBO Loans: A jumbo loan is a type of conventional loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA) for Fannie Mae and Freddie Mac. In 2023, single-family mortgages with balances higher than $726,200 will be considered jumbo.
1099 Loans: Our 1099 income loan option is for underserved self-employed borrowers who are 1099 workers. Many freelancers, contractors, gig economy workers or other self-employed borrowers who file using W-9s cannot qualify for a mortgage under Agency guidelines.
These underserved borrowers can use 1099 earning statements in lieu of tax returns to qualify for a mortgage. Our 1099 Income loan is an alternative loan solution that helps many self-employed 1099 earners achieve homeownership.
Asset Qualifier Loan: This loans helps borrower’s to qualify using their liquid assets. We do not require employment, income or DTI to justify ability-to-repay. We qualify based on required assets that meet seasoning requirements. We have helped retirees, underserved self-employed, divorced with no income, and other borrowers with required seasoned assets to purchase or refinance. This easy to close loan is another solution helping borrowers with their home loan needs who could not under Agency guidelines.
At KeySavings Bank we are adding new products to our home purchase options as we see community needs develop. Our values are to assure our membership that we will provide products that allow them to become homeowners.
