Home Loans › VA Desert Pacific Federal Credit Union

When you’re ready to purchase a home or take advantage of the equity you’ve built up in your current home, we look beyond the numbers to make great loans happen! VA Desert Pacific Federal Credit Union offers several mortgage loan options to help you purchase or refinance a home. If you already own a home and need money for something else, we offer home equity loans that allow you to put your greatest asset to work for you.

Mortgages

We can help you turn your dreams of home ownership into a reality! We know the mortgage process can be confusing, so our team will explain your options and walk you through the process step by step to find the loan that’s right for your budget and personal situation. We offer several different mortgage options.

Fixed Rate Mortgages

If you are planning on staying in the home for more than 5 years and want the security of a monthly mortgage payment that will never change, a fixed rate mortgage is a smart choice. Your property taxes and homeowners insurance may increase over time, but your principal and interest payments will stay the same.

Flexible terms
Low fixed rates
Predictable payments for the life of the loan

Adjustable Rate Mortgages (ARMs)

If an initially lower interest rate and lower monthly payments appeal to you and you are not concerned with potential rate increases, you may want to consider an adjustable rate mortgage. These types of mortgages feature an interest rate that changes at specified intervals (i.e. every 6 months or every year) depending on changing market conditions. If interest rates go up, your monthly mortgage payment will also go up. However, if rates go down, your mortgage payment will also drop.

The starting rate for ARMs is generally lower than the rate offered on a standard fixed rate mortgage. With lower initial interest rates, initial monthly payments will be lower, so you may be able to qualify for a larger mortgage amount.

Common types of ARMs are as follows:

7/1 ARM

A loan with a fixed interest rate and monthly payments for the first 7 years, and then an annual adjustable interest rate for the remaining 23 years.

3/1 ARM

A loan with a fixed interest rate and monthly payments for the first 3 years, and then an annual adjustable rate for the remaining 27 years.

Home Equity Loans and Lines

Your home is your greatest asset. Put it to work for you with a home equity loan or home equity line of credit! These products let you borrow at low rates by using the value of your home as collateral. You can use the funds for just about anything: home repairs, renovations or improvements; educational expenses; large purchases; debt consolidation and more.

Home equity loans and lines of credit are available on one to four unit dwellings.

HOME EQUITY LOAN

With a home equity loan, you can borrow money in one lump sum and repay it over a fixed amount of time with monthly payments.

Borrow up to 80% of your home’s value
Flexible terms up to 15 years
Interest Only or Principal & Interest (P&I) options available
Fast and easy processing
Possible tax deductibility of interest paid*

HOME EQUITY LINE OF CREDIT

With a home equity line of credit, you have the flexibility to borrow funds (up to an approved amount) whenever you need them. This is a revolving line of credit, so you can borrow, repay, and borrow again as often as you’d like during the term of your loan.

Borrow up to 80% of your home’s value
Credit limits available from $25,000 to $250,000
10-year draw period followed by 15 year amortization of balance
Rates as low as Prime plus 0%
Interest Only or Principal & Interest (P&I) options available
Fast and easy processing
Possible tax deductibility of interest paid*

*Consult your tax advisor for additional details.

FHA Mortgages

FHA (Federal Housing Administration) mortgages offer low down payments, income, asset, and credit qualifying criteria that may be more attractive to buyers whose mortgage needs fall within the FHA regional loan limit guidelines.

FHA is a fixed-rate or adjustable-rate program with a down payment of 3.5% of the purchase price. Because qualifying ratios are more lenient, you are able to be approved for a larger loan amount with less income. There are loan amount limitations that vary by region across the nation.

VA Mortgages

The U.S. Department of Veteran's Affairs was established in 1944 with the passage of the original GI Bill. Included in the many provisions of that bill was a program to assist returning World War II veterans with the purchase of a new home. The program has been expanded from time to time to include other veterans since then.

The assistance provided is a guarantee of a portion of a mortgage loan used to finance the purchase of a primary home. Each eligible veteran is granted a dollar amount of entitlement, which can be used in place of a down payment on a home, and can result in a loan for 100% of the purchase price.

Mortgage Process

The mortgage process can be a little intimidating, but don’t worry – we’re here to help you through every step! Whether this is your first mortgage or you’ve purchased a home before, we’ll assist you from start to finish and answer your questions along the way. Here’s an overview of what the mortgage process involves.

STEP 1: LOAN APPLICATION

Your mortgage loan application can be taken over the telephone, via fax or online.

STEP 2: LOAN PROCESSING

After the application is received, it will be reviewed to make sure the information is complete and consistent. The information is verified and the presence of all essential documents is confirmed. An appraisal is ordered to ensure the property is worth the loan amount. Your credit report is ordered.

STEP 3: UNDERWRITING

Once all documents are gathered, your loan package will be submitted to an underwriter who will evaluate your loan information as well as your ability to make the monthly loan payments.

STEP 4: LOAN APPROVAL

You will be asked to provide any additional information needed by the underwriter and notified of the conditions which must be met in order for your loan to close and fund.

STEP 5: DRAW CLOSING DOCUMENTS

The legal documents that are to be signed in escrow will be ordered.

STEP 6: CLOSING

A title agent reviews the settlement statement with you. This document includes all the final costs for the purchase. You will sign all documents such as the mortgage or deed of trust, note, Truth in-Lending Disclosure and other miscellaneous closing documents. You will give the closing agent a certified or cashier’s check for the down payment and closing costs. If you are purchasing a home, the seller will sign a deed and other miscellaneous closing documents.

STEP 7: LOAN DOCUMENTS RETURN TO LENDER

The lender receives the signed documents and verifies all conditions have been met and that the figures are accurate.

STEP 8: LOAN RECORDS

The funds are disbursed and the transaction is recorded at the County Recorder’s office. Congratulations! You’ve successfully purchased or refinanced a home.

Mortgage Rates

APR = Annual Percentage Rate