Your first home always holds a special place in your heart. It’s where memories are made, family traditions are upheld, and dinners are enjoyed with good company. It’s where you put down roots, become part of the fabric of life, and join a community of people who share your values.
A Place to Call Your Own
So, when you are looking for a First-time Homebuyer loan, look no further than KCU, where our members and employees live right down the street and share a love for this place that we all call home.
Specifically designed for first-time homebuyers, Kohler Credit Union now offers fixed and adjustable mortgage options for those looking to purchase their first home.
- 30-year fixed – NO DOWN PAYMENT REQUIRED*
- 5/1 Adjustable Rate Mortgage (ARM)2 and 10/1 ARM3 – As little as 3% down
First-time Home Buyer FAQs
Our caring and attentive mortgage team will help you every step of the way to find an option that best suits your mortgage needs. Learn more about what you can expect on your mortgage journey.
Not sure if a mortgage is right for you? Check out our mortgage affordability calculator or free financial education resources on buying a home.
Anyone that has not owned a home in the last 3 years can qualify. Additional requirements include the completion of an educational program through Freddie Mac or Fannie Mae, and that the home purchased must be owner occupied.
A fixed rate mortgage has a rate that stays the same through the entire length of your loan. With an adjustable rate mortgage (ARM), your rate can vary after the lock period ends. For our first time home buyers, we offer a 30 year fixed option or a 5/1 or 10/1 ARM. The 5/1 ARM’s introductory rate lasts for five years. (That’s the “5” in 5/1) and the 10/1 ARM’s introductory rate lasts for 10 years (That’s the “10" in 10/1). After that, the interest rate can change once a year. (That’s the “1” in 5/1 or 10/1).
One of the biggest advantages of a fixed rate mortgage is that the rate won’t change at any point throughout your loan. In other words, your monthly payment of principal and interest won’t change. (Please note your payments may fluctuate due to property taxes or homeowner’s insurance changes, because these expenses are typically included into your escrow which is bundled into your total monthly loan payment).
Fixed rate mortgages tend to be a popular choice when it comes to financing a home due to predictability for budgeting purposes, especially for first time homebuyers.
The disadvantage is that the interest rate on a fixed rate mortgage is typically going to be higher than that of an adjustable-rate mortgage, which may limit how much house you can afford. And because it is fixed for the entire length of your term, if mortgage rates decrease, your interest rate would not reflect that change.
The main benefit of an adjustable rate mortgage (ARM) is that you can typically take advantage of lower rates and they may be easier to qualify for with less cash down. Qualifying borrowers typically also have a lower payment, which allows them to buy a more expensive home than they otherwise could with a fixed mortgage. It also offers a more affordable option for borrowers who move frequently to buy a house.
Most people’s main concern with an adjustable-rate mortgage is that the rate can adjust after the lock period ends. After the lock period ends, the interest rate on an ARM fluctuates based on the index it’s tied to. The index is an interest rate set by the market and your ARM paperwork will tell you what index your mortgage follows. Mortgage rates can be unpredictable, however since the start of the pandemic in 2020, they have hit record lows.
One of the advantages of financing your first mortgage with Kohler Credit Union is that we require a smaller down payment than many other lenders. Other fees for mortgages can vary depending on which type of mortgage is right for you, so it is best to speak with one of our mortgage originators on your options and what fees apply.`
*30 Year Fixed Mortgage loan subject to credit approval and completion of educational requirement. No down payment option is valid for 30 year fixed mortgage only. Annual percentage rate (APR) will vary based on loan amount and applicable fees. Private Mortgage Insurance (PMI) required for any mortgage with less than 20% down. If you are current on your loan payments, PMI will automatically terminate on the date the principal balance of your loan is first scheduled to reach 78% of the original value of the property based solely on the amortization schedule then in effect for your loan. Some restrictions and exclusions apply. Cannot be combined with any other specials. Membership required.
25/1 Year Adjustable Rate Mortgage (ARM) loan subject to credit approval and completion of educational requirement. Rate is variable and can increase one time in year 6 of the loan and has a 5% interest rate adjustment cap. The new rate will be based on the current index at that time (One Year Treasury Constant, plus a margin of 2.750%). Your interest rate under this ARM can change after 60 months and every 12 months thereafter. Your interest rate cannot increase or decrease more than 2.000 percentage points at first adjustment and 2.000 percentage points per subsequent adjustment from the initial interest rate excluding any buydown. Your interest rate will never be greater than 6.000 percentage points above the initial interest or lower than 2.500 percent. ARMs require a minimum of 3% down payment with Private Mortgage Insurance (PMI). PMI is not required with 20% or more down. If you are current on your loan payments, PMI will automatically terminate on the date the principal balance of your loan is first scheduled to reach 78% of the original value of the property based solely on the amortization schedule then in effect for your loan. Some restrictions and exclusions apply. Membership required.
310/1 Year Adjustable Rate Mortgage (ARM) loan subject to credit approval and completion of educational requirement. Rate is variable and can increase one time in year 11 of the loan and has a 5% interest rate adjustment cap. The new rate will be based on the current index at that time (One Year Treasury Constant, plus a margin of 2.750%). Your interest rate under this ARM can change after 60 months and every 12 months thereafter. Your interest rate cannot increase or decrease more than 2.000 percentage points at first adjustment and 2.000 percentage points per subsequent adjustment from the initial interest rate excluding any buydown. Your interest rate will never be greater than 6.000 percentage points above the initial interest or lower than 2.500 percent. ARMs require a minimum of 3% down payment with Private Mortgage Insurance (PMI), PMI is not required with 20% or more down. If you are current on your loan payments, PMI will automatically terminate on the date the principal balance of your loan is first scheduled to reach 78% of the original value of the property based solely on the amortization schedule then in effect for your loan. Some restrictions and exclusions apply. Membership required.
Jumbo Loans
We offer a variety of jumbo loan options to fit your individual mortgage needs.
Mortgage FAQs
We have compiled a list of our most frequently asked questions to clarify and empower you with the answers you need!
