First-Time Homebuyer Social
Join us for a chat with local experts to learn what every first time home buyer should know - and enjoy a burger and beer on us!
When: Thursday, April 25, 2024
Registration at 5:30pm
Chat starts at 6:00pm
Where: These Guys Brewing Company, Norwich, CT
First Time Homebuyer
Turn your Dream into a Reality
If saving 20% for a down payment seems like a fantasy, it’s time to wake up and check out Scient’s First Time Homebuyer options. With as little as 3% down, home ownership can be your reality.
Benefits of a Scient First Time Homebuyer loan
Lower Costs
- 3% down payment vs. FHA loans at 3.5%
- No upfront mortgage insurance payment
- Competitive rates
- Flexible terms and payment options
- Including ARM loans
Faster Closing
- Less paperwork required than FHA Loans
- Fewer steps for more efficient processing time
Easy PMI Cancellation
- Private mortgage insurance (PMI) is temporary compared to government-insured loans
- Private mortgage insurance may be canceled after building enough equity
Have questions? Our Mortgage Manager, Faith Silva, is here to help. Contact her at 860 441 0914.
*For a loan amount of $200,000 at 97% LTV with a 30 year term and rate of 6.50% has an APR (Annual Percentage Rate) of 6.67% and a monthly payment at $1,264.14. Sample payment only
includes principal and interest. It does not include mortgage insurance, property insurance and taxes, and the payment will be higher than this disclosed amount. Minimum credit score is 620. Primary residence only on a single family home or condominium only. Rates as of 9/27/22 and subject to change without notice. +Waiver of Loan Origination Fee of $499 on First Mortgages with Scient Federal Credit Union. Other terms and conditions may apply.
Homebuyer Grant Program
The Equity Builder Program (EBP)
This program helps first-time homebuyers earning up to 80% of the area median income with down-payment, closing cost, home rehabilitation assistance and homebuyer education and counseling.
The maximum amount allowed is $30,806 per household for a Scient member.
Housing Our Workforce (HOW)
This grant helps homebuyers earning above 80% and up to 120% of the area median income with down-payment and closing cost assistance. HOW assists eligible homebuyers wiht 10% of the home sales price or up to $25,000 in down-payment and closing costs.
Comparison Chart
|
Program Comparison |
Equity Builder Program (EBP |
Housing Our Workforce (HOW) |
|---|---|---|
| Annual Member Application | Required | Required |
| Maximum Grant per Household | $30,806 | 10% of the sales price or up to $25,000 (lesser of the two) |
| Maximum Funds to Member | $350,000 | $260,000 |
| Minimum Down Payment (homebuyer's own funds) | $500 | 1.5% |
| Use of Grant Funds | ||
|
Down Payment |
Yes | Yes |
| Closing Costs (including Homebuyer Education & Counseling Fee) | Yes | Yes |
| Discounted points/ Interest Rate Reduction (up to 2%/points) | Yes | Yes |
| Rehabilitation Assistance | Yes | No |
| Purchase Price Limit | No | Yes, based on Mortgage Revenue Bond Limits |
| Purchase property must be an owner-occupied primary residence? | Yes | Yes |
| First-time homebuyer | Required | Not Required |
| First-time homebuyer education and counseling | Required | Required |
| 5-year retention mortgage and note | Required | Required |
| Member concession/incentive to homebuyer | Required | Not Required |
Dig into the numbers
Create a budget, make a savings goal, buy a home and more with the help of our financial calculators.
Mortgage Terms to Know
There are a lot of terms used in the mortgage process. Here are some we thought you should know.
Terms to Know
There are a lot of terms used during the mortgage process. Here are some we thought you should know.
Amorization
Repayment of loan principal over time with scheduled payments that consist of both principal and interest. The loan balance declines by the amount of the principal in the scheduled payment.
Annual Percentage Rate (APR)
The APR shows the costs of your mortgage loan as a yearly rate. The APR includes up-front fees (such as points) as well as interest and is intended to show you the true cost of your loan. When comparing one loan to another, be sure to compare APR’s to get a true picture of what each one will cost you.
Closing Costs
The cost of getting a mortgage in addition to the down payment. Usually 3-6% of the total loan amount.
Credit Bureau
An agency that collects statistics on individual payment records on loans, credit cards and other debts.
Debt-to-Income (DTI) Ration
The percentage of gross monthly income that goes toward paying all monthly debts, such as mortgage loans, car loans, student loans, credit cards, etc.
Equity
Equity is the portion of the property that you actually own through your payments, versus the portion that you still owe the mortgage lender. The longer you stay in your house, the more equity you will have.
Escrow
An account set up on your behalf in which a portion of your monthly payment is held to pay property taxes and insurance.
Gross Income
Amount earned before taxes or types of payroll deductions. Gross income includes overtime, commissions, dividends and any other sources for which a steady history can be shown.
Loan-to-value (LTV) Ratio
The ratio of a loan to the value of the asset purchased. If you have a higher down payment, you would have a lower LTV ratio. This factors into whether or not a lender will require someone to get mortgage insurance.
Points
Percentage points of the loan amount. Often in order to get a lower interest rate, lenders will allow borrowers to lower the rate by paying points upfront.
Pre-qualification
While not an approval, this gives borrowers an estimate of how much money they could borrow to purchase a home.
Pre-approval
A commitment from the Lender to make a loan to a specified borrower prior to identification of the specific property.
People to Know
Who's Who in the Mortgage Process
Appraiser
An individual who is licensed to estimate the worth (fair market value) of the property you are purchasing.
Closing or Settlement Agent
The party who conducts the closing meeting. This role may be filled by an attorney, title company, or
real estate agent depending upon the state where the property is located.
Loan Officer
A Loan Officer represents one lending institution and their loan programs. They help you choose the best mortgage loan based upon your situation and will help you complete the loan application.
Loan Processor
A Loan Processor is one who gathers, administers, and processes your loan application before it gets the approval of a loan underwriter. This individual is essential to getting your mortgage loan request to the final close.
Loan Servicer
The entity that collects mortgage payments (it may or may not be the lender) and pays taxes and insurance and mortgage insurance, if required, on your behalf.
Mortgage Insurer
By compensating the lender for losses should a borrower be unable to make payments, Mortgage Insurance allows a borrower to get into a home without having to come up with a 20% down payment. Many Mortgage Insurers, such as Enact Mortgage Insurance, can assist borrowers if they become behind in their mortgage payments.
Mortgage Lender
A financial institution that issues loans. Unlike brokers, lenders control the whole process, from underwriting to funding.
Property Inspector
An individual certified to conduct an examination of the home. An inspector will look for issues that may affect the value of the property and can assess the condition of a property’s roof, foundation, heating and cooling systems, plumbing, electrical work, water and sewage, and some safety issues.
Real Estate Agent
A real estate agent is a person who acts as an intermediary between sellers and buyers of real estate/real property and attempts to find sellers who wish to sell and buyers who wish to buy. They can often provide helpful and specific community information such as shopping, transportation, and schools.
Real Estate Broker
A broker is a licensed real estate professional who represents the sellers or buyers of a property, and can typically help determine the market values of properties. While a broker may work independently and has the ability to manage their own firm, an agent usually works under a licensed broker to represent clients.
Underwriter
A worker who evaluates and determines the risk for potential clients when applying for a mortgage. They may decide whether and under what terms to provide the mortgage.
Register here for the First-Time Homebuyer Social
* Required
