Buying your first home?
Get a no down payment mortgage with the First-Time Homebuyer Program!⁵
Your homebuying journey is about you. The way you finance it should be too.
Apply nowConventional fixed-rate | Jumbo | Adjustable rate (ARM) | |
Recommended for | Buyers who prefer the stability of a fixed monthly payment and plan to stay in their homes long-term. | Buyers looking for a loan that exceeds the borrowing limits set by the Federal Housing Finance Agency. | Buyers who expect to sell the property after a relatively short amount of time and would like to take advantage of lower rates during the initial period. |
Down payment | Typically a minimum of 3-5%; less than 20% will add private mortgage insurance (PMI) costs to your monthly payments. | More likely to require a larger percentage – usually 10-20%; less than 20% will add private mortgage insurance (PMI) costs to your monthly payments. | Typically a minimum of 3-5%; less than 20% will add private mortgage insurance (PMI) costs to your monthly payments. |
Interest rate | Could be more competitive than jumbo loans due to lower risk. | Typically available with a fixed or adjustable rate; potentially higher rates due to increased risk. | Typically has a lower introductory rate for a fixed period, then adjusts on a regular basis. |
Term options | 15 or 30 years. | 15 or 30 years. |
5/6: Fixed interest for 5 years, then adjusts every 6 months 7/6: Fixed interest for 7 years, then adjusts every 6 months. |
What’s the down payment required to buy a home?
In most cases, lenders will offer low down payment options with as little as 3% to 5% down for conventional financing and 3.5% down for FHA loans. Some lenders, such as Desert Financial, even offer first-time homebuyer programs that don’t require a down payment.5
Who pays the real estate agent fees when buying a home?
Generally, the seller pays the commission earned by the buyer’s agent. Therefore, if you’re the homebuyer, you typically don’t pay for your agent’s commission.
What’s the difference between a conforming conventional loan and a jumbo loan?
While the processes for conforming conventional and jumbo loans are quite similar, there are typically stricter guidelines for jumbo loans because of their high amounts. Those guidelines might relate to loan-to-value, cash reserves, credit score requirements and more. It’s also important to note that not all lenders can offer jumbo loans. Credit unions are known for having great jumbo options.
Relationship Rewards is a free program you're automatically enrolled in when you become a member. You earn points for doing various banking activities with us — and every point can help you level up! The higher your Relationship Rewards level, the more benefits you get.
Blog
Blog
Blog
1
Annual Percentage Rate (APR) shown effective {current-date} and is subject to change without notice. Visit our rates page for additional rate information and details.
2
The Real Estate Broker Program ("Desert Financial Home Plus") will match you with a participating real estate broker (“Participating Broker”) who will assist in the homebuying experience and will provide the applicable credit toward closing costs. Participating Broker shall provide a credit of 25% of the buyer’s agent commission toward the closing costs, up to a maximum of seven thousand five hundred dollars ($7,500) to be provided regardless of the lender utilized, and a credit of 25% toward the listing agent commission expense, up to a maximum of seven thousand five hundred dollars ($7,500), if the Participating Broker lists an applicable property with a real estate agent from the list of preferred providers. The Participating Broker will confirm each applicable credit is applied by the title company. These credits are applied as a discount from the commission payable to the broker. Use of a Participating Broker is completely voluntary and members financing the purchase of a home with Desert Financial Credit Union (“Desert Financial”) are under no obligation to participate in this Program. Desert Financial does not receive any benefit, monetary or otherwise, from the Participating Broker under this program. Participating brokers are non-affiliated third parties of Desert Financial, and Desert Financial makes no warranties or representations about the services provided by participating brokers.
4
Eligible borrowers financing the purchase of a new home with Desert Financial Credit Union will receive monetary compensation of $100 per day, up to a maximum of $500, if the scheduled closing date is not met. Restrictions and eligibility requirements apply.
5
Must be a first-time homebuyer (not having owned a primary residence in the last three years) with a minimum credit score of 680 to be eligible. Property must be located in Arizona. Jumbo loans and loans with non-occupant co-borrowers are ineligible. Additional restrictions and eligibility requirements apply.