Home Loans FAQs
Purchase a Home FAQ
A great first step is to speak with one of our Home Loan Advisors. We’ll discuss your homeownership goals, review your financial situation, explain your financing options, and help you determine what you may be able to afford. Getting prequalified before you begin shopping can also give you a better idea of the price range that fits your budget.
The amount you may be able to afford depends on several factors, including your income, monthly debts, credit history, available funds for a down payment and closing costs, interest rates, property taxes, homeowners insurance, and applicable homeowners association (HOA) dues. We can help you evaluate the overall monthly housing payment—not just the purchase price—to determine a comfortable price range. Check out our mortgage calculation tool!
Documentation varies depending on your financial situation and loan program. You may be asked to provide:
- Recent pay stubs
- W-2s and/or tax returns
- Bank and asset statements
- Employment information
- Identification
- Information regarding your current housing expenses
- Documentation for additional income, if applicable
- Information about other real estate you own, if applicable
Self-employed borrowers or borrowers with other types of income may need to provide additional documentation. Your real estate team will provide a personalized list based on your application.
Buying your first home is an exciting milestone, and you don’t have to navigate it alone. There may be loan programs and down payment assistance options designed to help eligible first-time homebuyers.
We can walk you through the entire process, explain mortgage terminology, help you understand your potential monthly payment and upfront costs, and review programs that may be available to you.
Yes. In fact, getting prequalified before you begin shopping can help you understand your potential buying power and make your home search more focused.
Our Home Loan Advisors are here to help. Whether you’re buying your first home, moving into your next home, refinancing, or simply exploring your options, contact us and we’ll help you determine your next step.
Home Refinance FAQs
- While every loan is different, the mortgage process generally includes:
- Prequalification – We review your financial information and discuss your loan options.
- Home Search & Offer – Once you know your potential price range, you can begin shopping for a home and make an offer.
- Application – After you have a property, you’ll complete your mortgage application and provide the required documentation.
- Processing – We review and verify your income, assets, credit, property information, and other loan details.
- Underwriting – An underwriter reviews the loan to determine whether it meets applicable lending requirements.
- Final Approval & Closing – Once all loan conditions are satisfied, final documents are prepared for signing and the loan moves toward funding and closing.
Your Home Loan Advisor and real estate team will keep you informed throughout the process.
A fixed-rate mortgage has an interest rate that remains the same for the life of the loan, providing predictable principal and interest payments.
An adjustable-rate mortgage (ARM) typically offers an interest rate that is fixed for an initial period. After that period, the rate may adjust periodically based on the terms of the loan and the applicable index. This means your interest rate and monthly payment could increase or decrease over time.
We can help you compare both options based on your goals and how long you anticipate owning the home.
Documentation varies depending on your financial situation and loan program. You may be asked to provide:
- Recent pay stubs
- W-2s and/or tax returns
- Bank and asset statements
- Employment information
- Identification
- Information regarding your current housing expenses
- Documentation for additional income, if applicable
- Information about other real estate you own, if applicable
Self-employed borrowers or borrowers with other types of income may need to provide additional documentation. Your real estate team will provide a personalized list based on your application.
Loan options vary based on your needs and qualifications and may include:
- Fixed-rate mortgages
- Adjustable-rate mortgages (ARMs)
- Conventional loans
- Jumbo loans
- First-time homebuyer programs
- Low down payment programs
- Purchase and refinance loans
- Home equity loans or Home Equity Lines of Credit (HELOCs)
Not every loan program is right for every borrower. A Home Loan Advisor can help you compare your options and select a financing solution that aligns with your homeownership goals. Check out our Home Loan Programs to see what First U.S Community Credit Union offers.
In addition to your down payment, you may have closing costs and prepaid expenses. These can include costs associated with the appraisal, title services, taxes, homeowners insurance, and other services related to the transaction.
Before closing, you’ll receive disclosures outlining the estimated and final costs associated with your loan.
Timing varies depending on the loan program, property, documentation, appraisal or valuation requirements, and complexity of the transaction. Providing requested documents promptly can help keep the process moving.
Depending on your loan and how your account is structured, your monthly housing payment may include principal, interest, property taxes, homeowners insurance, mortgage insurance, and applicable HOA dues. Your Home Loan Advisor can help you understand your estimated total monthly housing expense.
Our Home Loan Advisors are here to help. Whether you’re buying your first home, moving into your next home, refinancing, or simply exploring your options, contact us and we’ll help you determine your next step.
Home Equity Loan FAQs
A HELOC provides revolving access to funds during its draw period. A home equity loan typically provides a lump sum with a set repayment schedule.
Your approved limit depends on factors such as your property value, existing liens, income, credit history, and underwriting requirements. A Loan Advisor can help you explore your options.
Not necessarily. A HELOC may be established as a separate lien, allowing you to retain your existing first mortgage, subject to eligibility and lien requirements.
Home Equity Lines of Credit FAQs
A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home. It allows you to borrow against available equity, up to an approved credit limit, during the draw period.
During the draw period, you can borrow available funds as needed. When you repay principal, that amount generally becomes available to borrow again, subject to your agreement. Interest is charged on the amount borrowed, not the entire credit limit.
Common uses include home improvements, major purchases, education expenses, unexpected expenses, and debt consolidation. Consider your budget carefully because your home secures the line of credit.
Our current HELOC has a 20-year draw period. The total loan term is also 20 years, meaning the line matures at the end of that period. There is no additional 20-year repayment period.
Our current HELOC requires principal-and-interest payments, not interest-only payments. Payments are calculated according to your loan agreement using the outstanding balance, applicable interest rate, and payment terms. Your payment may change when your balance or rate changes.
No. Interest is charged on the outstanding amount you have borrowed. For example, if your credit limit is $100,000 and your balance is $20,000, interest is charged on the outstanding balance rather than the full credit limit.
APR is variable and based on Prime Rate as published in The Wall Street Journal on the last day of the previous month + margin.
A balloon payment is the remaining unpaid principal balance, together with any other amounts due under your agreement, that must be paid in full at maturity. Because the HELOC has a 20-year term and allows advances during the draw period, regular monthly payments may not fully pay off your balance by the maturity date.
The draw period and loan term end, and any remaining balance becomes due in a balloon payment. You should plan ahead for how you will pay this amount. Refinancing or another financing option may be available, but approval is not guaranteed.
Yes, you can generally make additional principal payments to reduce your balance and the interest you pay. Check your agreement for payment instructions and any applicable conditions.
You may generally repay your balance before maturity. Ask about any early closure fees or other applicable conditions in your agreement.
Yes, homeowners without an existing mortgage may qualify based on property value, credit, income, and other lending requirements.
You may be asked for income verification, mortgage statements if applicable, homeowners insurance information, and other financial documents. Requirements vary by applicant.