San Francisco Credit Union Offers Home Mortgages With No Down Payment
By: CBS Local
SAN FRANCISCO (CBS SF) — A major obstacle to home buying in the Bay Area is coming down for customers of a local credit union which is now offering financing without a down payment.
San Francisco Federal Credit Union is offering up to 100 percent financing of a new home, which a credit union executive called “game-changing” for potential homeowners who just don’t have enough for the down payment.
“In our community we saw a lot of members come and really want to buy a home and in that middle market where’s they have good jobs and make good income, but they just didn’t have that full 20 percent down,” said SFFUC Senior Vice President Rebecca Reynolds Lytle.
With the average San Francisco home now priced at a million dollars, a $200,000 down payment is a deal breaker for many.
Applicants must work in San Francisco or San Mateo County, and the home being bought has to be the applicant’s primary residence and located in one of the nine Bay Area counties.
“It’s not a refinance loan, it’s not an investment property loan,” said Reynolds Lytle.
Applicants do go through a strict vetting process and not everyone qualifies. The home also has to be approved by the credit union.
Local realtor Darryl Honda said the program could change the Bay Area rental landscape.
“This is going to put people that are on the edge to make that decision … it’s going to turn people into homeowners,” said Honda.