We work with many members that are trying to purchase and finance their first home. In many cases these members have limited money for a down payment. When a member has a downpayment of less than 20% of the purchase price, we will generally require Private Mortgage Insurance (PMI) on that loan.

As a cooperative financial institution doing business in today's world, small downpayments mean more risk. We never enter into a new mortgage loan expecting a problem with the loan being repaid. Our loan staff is experienced in working through repayment issues so that our members are always treated with respect and our credit union is protected. PMI is a last resort protection for us as a lending institution. Broadly defined, it limits a mortgage lender's risk of loss in the event a foreclosure takes place on a transaction involving a small downpayment.

If PMI is required on a mortgage loan, the members' application must be underwritten and approved by a Mortgage Insurance company that we have contracted with. Approvals are based on application information, downpayment and employment verifications, appraisal, credit rating and other important aspects of the loan.

So, if you are thinking of purchasing a home with limited downpayment, give us a call. We pledge to give you answers to your questions and to make your mortgage experience very satisfying.

Michelle Strate, Mortgage Loan Officer