A simple and straightforward loan for first time homebuyers, GreatStart HomeLoan™ offers two options:
- A 30-year term with fixed interest rate. This ensures your payments will never increase over the life of the loan. It is a great option for borrowers who intend to remain in their home for over 10 years and want the certainty of a fixed payment throughout the life of the loan.
- A 30-year term with a 10/1 Adjustable-Rate Mortgage (ARM). This mortgage has a 30 year payback period. For the first 10 years, the interest rate is locked in at a lower rate. After that, the rate is variable for the remainder of the term. According to a National Association of Realtors (NAR) report*, the median length of first-time homebuyers age 33 and younger expect to own their home is 10 years, so this option, which comes at a reduced interest rate and payments, makes homeownership even more affordable for our customers.
Both options have no private mortgage insurance (PMI) and qualified borrowers can purchase a home with as little as 3% down. The seller may pay closing costs up to 6% of the sales price and all but 1% of the down payment may come from a gift or approved grant program. The GreatStart HomeLoan is designed to help low to moderate income borrowers purchase the home of their dreams. Certain income limits and other restrictions apply.