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PENFED MORTGAGES

FIRST TIME HOME BUYER

Find the information, resources, and answers you're looking for
before buying your first home.

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4 Stages of Buying Your First Home

Stage 1 - thinking about it

STAGE 1

Thinking About Buying A Home

Stage 2 - Looking for a home

STAGE 2

Looking for a Home

Stage 3 - Getting a mortgage

STAGE 3

Getting a Mortgage

Stage 4 - Closing and moving

STAGE 4

Closing & Moving In

1. THINKING ABOUT BUYING A HOME?

The first stage of buying a new home is considering your options and making the decision to take the next step.
Here are some resources to help you get started.



Transitioning From Renting to Home Ownership

Buying Your First Home

Buying a home takes time, but the transition from renter to owner doesn’t have to be intimidating, especially when you know what to expect up front.

[Are Your Ready? These Videos Can Help]

This article will help you understand the process and what to expect along the way.

[Read Full Article]

Should I Rent or Buy?

Compare Costs Between Renting and Buying

Do you know how the costs of a new home might compare to what you're paying now? After all, buying a home is one of the most important financial decisions that you will make.

The New York Times created an online calculator that helps you compare the costs of renting to the cost of ownership, depending on your individual situation. It's one of the best we've found to help you determine what option is right for you.

[Compare Costs Now]

Making Homeownership More Affordable

HomeReady® Is Here to Help

HomeReady is a program offering solutions to future homeowners needing help with mortgage approval, whether due to income or down payment requirements. HomeReady also offers assistance for homes purchased in select redevelopment regions within the United States.

[Determine Eligibility]

Interested in your options? Our Mortgage Center is here to help.

[Contact PenFed Mortgage]

Understanding Mortgage Costs

6 Considerations You Need To Know

The cost of buying your own home includes more than just the sales price. From points to loan terms and closing costs, many factors affect the total cost you end up paying.

[Learn more about mortgage costs (video)]

These six factors should be taken into consideration before signing on the dotted line.

[Read Full Article]

Related Articles

Interested In Learning More?

Here are a few additional articles to help you make your home buying experience even better.

[Mortgage Programs for Veterans and Military Personnel]

[VA Mortgage Frequently Asked Questions]

[Getting Pre-Qualified]

[6 Things to Know About Your Earnest Money Deposit]

2. Looking For A Home?

Are you trying to find that "just right" home but don't know where to start? Or maybe you've seen hundreds of properties online but you aren't sure which ones are right for you?  

PenFed Realty can help. As a trusted partner of PenFed Credit Union, PenFed Realty is available to give you the personalized service you deserve. 

 

Contact PenFed Realty

How Much Can I Afford?

Simplify your home search by knowing your price range to look for. 

Our Affordability Calculator can help you estimate the price based on income, monthly debts, down payment, and the length of the loan term. 

Follow these steps to see your results:

Step 1: Enter your annual income. 
(If more than one person will own the home, include his or her income as well.)

Step 2: Input your monthly debts - and the debts of any co-owners.

 

Step 3: Input a down payment amount.

Step 4: Select a loan term. (Many people start with a 30-year term.)

Step 5: Calculate and view your results!

 

Mortgage Affordability Calculator

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Start Application

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

The calculator above is for educational purposes only. Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.

 

 

3. GETTING A MORTGAGE

Once you have an idea of how much you can afford and what you're looking for in a new home, it's time to get a mortgage. 

 We'll walk you through the process and let you know what you need and what to expect when prequalifying or applying for a mortgage loan.

 

 

applying for a mortgage

Applying For A Mortgage

Mortgage applications can be confusing and often require documents that aren't easily available. Find out what you'll need here.

[Show Me More]

terms to know

Mortgage Terms

Navigating a mortgage application or reviewing a new home listing can be confusing, especially when everyone seems to be speaking a different language.

[Confused by these mortgage terms? Find help here.]

types of mortgages

Mortgage Types

What mortgage type is best for you? It depends! Take a look at your options, compare rates and features, and find the mortgage right for you.

[Explore Mortgage Options]

 

GREAT MORTGAGES FOR FIRST TIME HOMEBUYERS

 

Below are common types of mortgages to choose from. 

Want to explore specific product options and current rates?  Explore your options here.

 

 

Mortgage Types Benefits Great For:
First Time Home Buyer Advantage 3% Down Payment

Job loss protection for the first 2 years 1

$500 Reward for 60th-on-time mortgage payment 2

No income limits

No origination fee 		Buyers wanting a low down payment of 3% with job loss protection.
Conventional Fixed Rate Options Multiple term options available

Stable payments over the life of the loan		 Buyers wanting a down payment of 5% or more
Low Down Payment Options HomeReady and First Time Home Buyer options available

Down payment & closing costs OK from multiple sources (including gifts and grants)

A wide range of income sources accepted for qualification

Online Homebuyer Education for First Time Homebuyers required for select programs		 Buyers wanting a down payment as low as 3%
VA Loan Options3 Fixed and adjustable options available

For qualified military, veterans, and family members		 VA qualified buyers wanting a down payment as low as 0%
Adjustable Rate Options Multiple term options available

Low initial rates		 Buyers planning to move within the next 5 to 7 years

1 Job Loss Protection (MortgageAssure) is an optional benefit that is an involuntary unemployment insurance that can help cover your mortgage payments up to six consecutive monthly mortgage payments of up to $1,500 per month including principal, interest, taxes and insurance. This optional feature requires you opting in to participate. You will receive a letter from Radian Guaranty, Inc providing you with instructions. For more information regarding this optional benefit, please go to www.mortgageassure.com

There are no costs to you, and you are under no obligation to register your loan, or to report any claim. Once you have registered your loan for MortgageAssure, you will receive a Disclosure of Benefits outlining the MortgageAssure program along with additional information on how to report a claim in the event that you become involuntarily unemployed. The Disclosure of Benefits will be the confirmation that your loan has been successfully registered for the MortgageAssure benefit.

- Job Loss Protection not available in Guam & Puerto Rico

Eligibility Requirements

For your Mortgage to be eligible under the Policy:

  • • You must involuntarily unemployed within 24 months from the date that you affirmatively respond to the program
  • • You must affirmatively respond within 90 days from the date you financed your mortgage agreement
  • • You must apply for and received state or federal unemployment insurance benefits during each monthly payment period for which a claim is being made.
  • • Your monthly mortgage payment may become re-eligible for coverage under the policy if you have been reemployed for a 30 period following your last period of unemployment, subject to the maximum of 6 payments in total under the policy. Self-employed and pension fixed income recipients are ineligible under the Policy

2 Timely Rewards is a benefit PenFed has secured for our members who choose and close the FTHB Advantage Product. There is no action that you need to take to register for this benefit. To receive the $500 timely reward, you must make 60 consecutive payments by the due date listed on your monthly mortgage statement. This is available through Radian Guaranty, Inc

- Time Rewards not available in North Dakota, Alaska, Guam & Puerto Rico

3For Service members, Veterans, spouses, and other eligible beneficiaries with a valid Certificate of Eligibility.

 

 

How Much Will My Mortgage Cost?

Many factors can determine the monthly payment amount of your mortgage, including the price of the home, amount and type of the loan, and the loan interest rate.


Use our Monthly Mortgage Payment Calculator below to help you estimate your potential monthly payment.

 

 

Mortgage Payment Calculator

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Down payments less than 20% of property value may require Private Mortgage Insurance (PMI).
*PenFed Adjustable Rate Mortgages (ARMs) are calculated using 30 year Loan Terms
CALCULATE
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$1538.00
Start Application

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

The calculator above is for educational purposes only. Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.

4. Closing and Moving In

Once you've closed on your home, its time to move in.  

Check out these moving tips now. 

 

More Moving Tips

FREQUENTLY ASKED QUESTIONS

 

 

Will my credit score go down when I apply for a mortgage?

Does my down payment need to be 20%?

What are closing costs?

What is an escrow account?

What happens to my earnest money if I don't buy?
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