Refinance

VA Loans

• Credit guidelines are less restrictive than conventional loans (VA loans will consider lower credit score loans).
• VA purchases will finance 100% of the purchase price up to $417,000.
• VA purchase loans up to $417,000 require no down-payment.
• VA purchase loans require no money out-of-pocket (ask about closing cost options).
• Some VA loans are available as soon as 24-months after bankruptcy.
• VA loans will consider a loan 36-months after a foreclosure
• VA loans are assumable (your low-interest loan today could make your home more valuable in the future).
• VA loans typically have lower interest rates than Conventional loans.
• VA loan funding fees are waived for veterans with service related disabilities of 10% or greater.
• There is no monthly mortgage insurance on VA loans.
• VA loans are available for up to $1 million in some cases (most loans over $417,000 require a down-payment).

Federal Housing Administration (FHA) Loans

• FHA offers low down-payment mortgages (i.e. 3.5% of your loan amount or $3,500 on a $100,000 loan).
• Unlike most Conventional loans, the down-payment may be a gift from a family member.
• First-time home-buyers may be able to qualify for down-payment assistance from programs such as CHFA.
• FHA loans allow non-occupying co-signers.
• Credit guidelines are less restrictive than Conventional loans (FHA will consider lower credit score loans).
• Some FHA loans are available as soon as 24-months after bankruptcy.
• FHA will consider a loan 36-months after a foreclosure
• FHA loans are assumable (your low-interest loan today could make your home more valuable in the future).
• FHA rates are typically lower than Conventional loans.

Conventional Loans

• Conventional loans are typically insured by Fannie Mae and Freddie Mac (to be insured, loans must be underwritten to Fannie/Freddie guidelines and meet conforming loan amounts ($417,000 limit unless the home is in a high cost area).
• AAFCU offers non-insured portfolio Conventional loans.
• Conventional loans require lower up front loan costs then most FHA and VA loans.
• Conventional loans where the loan amount is less than 80% of the appraised value of the home do not require mortgage insurance
• Conventional loans are available up to 97% of appraised value (mortgage insurance is required if greater than 80%).
• If you need Mortgage Insurance, contact an AAFCU Mortgage Professional to learn how AAFCU can save you $50 or more a month compared to other mortgage lenders.
• Conventional loans of greater than $417,000 are available as uninsured mortgages (also called Jumbo loans).

Underwater

Home Affordable Refinance Program (HARP)

If you're not behind on your Fannie Mae© or Freddie Mac© mortgage payments, but have not been able to get traditional refinancing because the value of your home has declined, you may be eligible to refinance through the Home Affordable Refinance Program (HARP).  HARP is designed to help you get a new, more affordable, and more stable mortgage.  HARP refinance loans require a loan application and underwriting process, and refinance fees will apply.  Contact an AAFCU mortgage professional to take advantage of this program at mortgageinfo@aafcu.com. 

To determine if you are eligible to be considered for a HARP refinance you will first need to have Fannie Mae or Freddie Mac verify that they are insuring the loan. You can do this by clicking on following links below at no cost to you. 

By clicking the links below you are leaving Air Academy Federal Credit Union's website (aafcu.com) to access services provided by a third party vendor.

To determine if your loan is serviced by Fannie Mae click here.  

To determine if your loan is serviced by Freddie Mac click here.

$25 Billion Foreclosure Bailout: You may be eligible for up to $2,000 if you owe more than your home is worth or lost a home to foreclosure to one of the following five lenders: Bank of America, CHASE, Wells Fargo, Ally (formally GMAC) or Citi Bank.  Before pursuing this program, make sure you do not qualify for either HARP or HAMP programs.  If you do not qualify for either of these programs, contact the bank above that is your mortgage service provider to see if you qualify for bailout money as described.

Home Affordable Modification Program (HAMP)

Please note: If you have not missed any mortgage or consumer loan payments and have good credit the Home Affordable Refinance Program (HARP) may be more appropriate for your situation than the HAMP modification program.  

If you have missed payments or your credit has been negatively affected for any reason and you're employed, but you're still struggling to make your mortgage payments, you may be eligible for the Home Affordable Modification Program (HAMP).  HAMP can lower your monthly mortgage payment as low as 31% of your verified monthly gross (pre-tax) income, which usually provides savings of hundreds of dollars per month.

WHAT TO DO: Contact your current mortgage servicing company and ask them for their modification process.  This program can save your home (but it can be tedious) be prepared to provide the same information to the modification department multiple times. Also, consider reapplying if your first request is denied.