First Time Homebuyers
Buying your first home is a big deal. Carolina Trust helps make the process of financing your first home purchase totally achievable.
- Competitive rates
- Maximum 30-year term
- 100% Financing
- No down payment
- No private mortgage insurance
- No income limit restrictions
- Must complete Balance Track counseling programs before closing
Here’s how it works:
If you’ve never owned a home or haven’t owned one in the last 3 years, you’re eligible for our First Time Home Buyers loan. This loan is a 5/1 Adjustable Rate Mortgage with a maximum term of 30 years. The first 5 years of your loan are financed at a fixed rate. Then, on the 61st payment, your initial fixed rate may adjust based on market conditions but would not increase or decrease more than 2.00% each year with a lifetime rate cap of 5% over the initial rate.*
Review our First Time Homebuyers FAQ for more information.
*Loan approval and Annual Percentage Rate subject to credit worthiness. Loan type subject to property and borrower qualifications. Other restrictions apply.
A first-time homebuyer is an individual or couple who has had no ownership in a primary residence or has not been listed on a Deed in the past 3 years.
The First Time Homebuyer mortgage is a 5/1 Adjustable Rate Mortgage (ARM) with a maximum 30-year term.
The initial interest rate is fixed for the first 5 years. The initial fixed interest rate will change to an adjustable interest rate as of the 61st payment. Thereafter, the rate cannot go up or down more than 2% each year with Lifetime rate cap of 5% over the initial rate.
Most First-Time Home Buyers only stay in their home a maximum of 5 to 7 years. The ARM interest rate is usually lower than a 30-year fixed interest rate, along with no Private Mortgage Insurance. This results in a lower mortgage payment with more being applied to the principal balance when adjusting to home ownership and growing equity in the home.
Example Only: The initial rate is 4.250%* for first 5 years. Thereafter, the rate can’t go up or down more than 2% each year until the loan is paid in full. With a lifetime rate cap of 5%, the interest rate will never be more than 9.250%.
*Loan approval and approved Annual Percentage Rate are subject to credit worthiness. Membership not required to apply for loan but required prior to funding. Certain restrictions apply. Rates and terms subject to change. Equal Housing Lender. See Credit Union for details.
• The maximum loan amount is $548,250.00
• The maximum loan to value is 100% (Loan to value = loan amount divided by sales price)
No down payment required. 100% finance of purchase contract.
• Property must be their Primary Residence
• Purchases only
• Property must be a single-family home, condominium, or townhouse.
• Manufactured Homes are excluded from this program.
No. PMI will not be added to the monthly payment. Therefore, more of your mortgage payment is being applied to the principal balance. Thus, you are growing equity in the home.
The Member(s) must be employed (full-time and/or part-time) in the same line of employment for at least 2 years.
Credit score must be 640 or above. Member must be current on all existing obligations.
Yes. The Member(s) must complete the pre-purchase counseling program through BALANCE Financial Counseling Service. There are no fees to the member for these classes.
There are 3 classes they must complete:
• Balance Track: Credit Matters
• Balance Track: Money Management
• Balance Track: The Road to Homeownership
• Commitment Fee: $895.00
• Appraisal Fee: $400.00
• Wire Transfer Fee: $15.00
• Flood Certification Fee: $17.00
• Credit Report Fee: $36.00
• Documentation Fee: $60.00
• Recording Charge: $58.00 +/-
• Attorney Fees: TBD (Members select their own attorney, Attorneys set their own fees)
Yes, closing costs can be paid by the Seller or the funds can be a gift from a family member.
Yes. CTFCU requires escrow for taxes and insurance.
Yes, all loan payments must be repaid by automatic draft from a CTFCU checking account.
The home must be in marketable condition with “no needed repairs”. All property defects and repairs must be corrected prior to closing.
No, with existing membership in CTFCU the property can only be located in South Carolina or North Carolina.