In an effort to help consumers qualify for home loans, credit unions are requiring a significantly lower down payment than usual from potential homebuyers, and creating new products including loans with no down payment.
Orange County's Credit Union offers a conventional loan with zero down payment and a 3 percent down payment loan option. The 3 percent down payment loan option can be used for a loan up to $850,000. OCCU looks for a minimum FICO score of 720 for the zero down payment conventional loan, and a 680 score for the 3 percent down option, per Credit Union Journal.
“Prior to offering these home loan solutions we encountered members that had good credit and employment, and were paying high and rising housing rents, who were seeking to own a home. The only thing keeping them from owning a home was they did not have tens of thousands of dollars in their bank account for a 5 percent or greater down payment,” said Carlos Miramontez, vice president of mortgage lending at OCCU.
