Welcome First Time Home Buyers
Ready to Buy Your First Home?
You’ve come to the right place. At California Credit Union, we’re dedicated to making your dream of homeownership a reality.
- Competitive rates
- Outstanding performance – we close in time and on time
- Secure, online portal to track your loan
- Exceptional people to help your journey
- Financial Literacy Education
Our team is here to help you find the perfect mortgage for your first home.
At California Credit Union, we understand that saving for a down payment and closing costs can feel overwhelming, especially for first-time homebuyers with modest incomes. We're committed to making homeownership more accessible through programs like these.
Tailored Solutions for First Time Home Buyers.
Did you know?
Our tailored solutions for first-time home buyers make homeownership more accessible than ever. With programs designed to fit your needs, expert guidance and exclusive incentives, your dream home is within reach.
3% Down Programs
Start your journey with just 3% down. We offer a variety of programs designed to make homeownership accessible. Contact our Real Estate Loan Center at (877) 228-4873 to learn more.
$0 Closing Costs
We’ll pay up to $10,0001 of your closing costs when you select either a 5/5, 7/6, or 10/6 Adjustable-Rate Mortgage (ARM), fixed for the first 3, 5, 7, or 10 years. Offer good for a limited time and is valid for owner-occupied or second homes.
Up to $3,000 in Incentives4
Limited-time offer on select 30 year fixed-rate loans.
Home Rewards with free MLS access
Home Rewards helps you find the right home with expert guidance, and those who enroll and utilize the Home Rewards program are eligible to earn a rebate up to 20% of the agent’s commission.5
Home Loans | - No application fees - No prepayment penalties - Financing up to 97% of home value - Cash-out options, make your equity work for you - Consolidate first and second mortgages and home equity lines of credit - Portfolio lender - |
Adjustable Rate Mortgage (ARMs) | - Standard, Hybrid and 5/5 ARMS available - No closing costs1 - Rate fixed for the first 3, 5, 7, or 10 years2 - Financing up to 97% for the purchase of a new home (LTV’s greater than 80% require Mortgage Insurance) - Offer good for a limited time and is valid for owner-occupied or second homes |
Fixed Rate Mortgages | - Conventional or Jumbo Mortgages - 10/15/20/30-year terms available3 - Purchase or Refinance - Primary Residence & Non-Owner Occupied - Limited Time Offer: up to $3,000 in lender incentives on fixed-rate4 |
80/10/10 Loan Program | - 80% first mortgage, 10% second mortgage, 10% down payment - No PMI (Private Mortgage Insurance) so your monthly payment stays low - Fixed or adjustable rate - Owner occupied only - Purchase or refinance |
VA Loans | - Zero down payment purchases - 100% cash-out refinances - Acceptable debt-to-income ratios higher than conventional loans - Fixed and adjustable rate mortgages (ARMs) available - No monthly mortgage insurance required - No prepayment penalty |
How To Get Started
How To Get Started
Let’s figure out the ideal way for us to work together.
If you are:
- Just beginning your homebuying journey and want to ensure you’re starting the right way
- Looking for help assessing your homeownership goals
- Starting to plan for your first home purchase
We recommend you visit our Learn Center and explore our Home Affordability Calculator, or explore current rates.
If you are:
- Further along in your homebuying journey and ready to make an offer
- Considering different mortgage options or need help with the application process
- Looking for assistance with closing costs or understanding the final steps
We recommend you meet with one of our in-branch Mortgage Advisors.
Call us
Contact our Real Estate Loan Center at (877) 228-4873 to schedule an appointment.
Top questions from first-time buyers
There isn’t one first-time home buyer loan that’s universally “easiest,” as each buyer’s situation is unique. The best option depends on your specific financial circumstances, credit profile and long-term homeownership goals.
If you’re a first-time home buyer in California, our programs offer several accessible paths to homeownership. We’ve designed our programs specifically to help new buyers overcome common barriers to entering the housing market.
Our first-time home buyer loan options include:
- 3% down payment options: This option lets you purchase a home with minimal upfront costs while maintaining affordable monthly payments
- 80/10/10 loans: This structure combines an 80% primary mortgage with a 10% second mortgage, requiring just 10% down while avoiding private mortgage insurance (PMI)
- VA loans: For qualified veterans and active service members, these loans require no down payment and offer competitive interest rates
If you’re an educator, we also offer specialized loans for teachers with unique benefits designed for those in the education field.
FHA loans can also be a good alternative. These government-backed loans feature flexible qualification requirements for buyers with limited savings or credit challenges.
Credit requirements for first-time buyers vary by program. Most conventional loans consider a good credit score to be around 620+ to be deemed eligible.
However, California first-time home buyer programs through our credit union consider your complete financial picture, not just your credit score. While higher scores typically secure better rates, we work with a range of credit profiles and offer:
- Credit-building resources to help improve your score before applying
- Rate-lock options to secure favorable terms once you qualify
- Free financial counseling to identify improvement opportunities
If you’re working on building credit, a credit union personal loan can sometimes help establish payment history before pursuing a mortgage. You can also review our guide on how to build good credit.
Down payment requirements for first-time buyers range widely based on the program type. Conventional loans typically start at 3% for first-time buyers, with a 20% down payment being standard.
In California, first-time home buyer programs with down payment assistance can significantly reduce your upfront costs. These specialized options help make homeownership more achievable for those with limited savings. Our programs include:
- Zero down payment options for qualified buyers through a specialized program
- Down payment assistance grants for eligible first-time buyers
- $0 closing costs on qualifying adjustable-rate mortgages (up to $10,000 in savings)1
- Up to $3,000 in additional incentives4 on select 30-year fixed-rate loans
Use our interactive home affordability calculator to determine what mortgage payments you can comfortably afford based on your income, expenses, and available down payment.
As member-owned, not-for-profit organizations, there are several benefits of credit unions members can enjoy, including lower interest rates, reduced fees and more personalized service compared to traditional banks.
When you choose a credit union, you’re not just a customer; you’re a member and part owner.
This difference shapes how we approach lending decisions and member service. Unlike big banks that answer to shareholders demanding maximum profits, credit unions return benefits directly to members through better rates and lower fees.
For credit union home loans specifically, first-time buyers frequently benefit from:
- More flexible approval criteria that consider your unique financial situation. We look beyond just credit scores to understand your complete financial picture
- Direct access to decision-makers who understand local California housing markets. Our loan officers live and work in the communities we serve
- Higher approval rates for borrowers with non-traditional financial profiles. We can often find solutions when big banks say no
- Ongoing relationship banking that supports you throughout your homeownership journey. From pre-approval through closing and beyond, we’re with you every step of the way
Many first-time home buyers also appreciate the more personal touch that comes with being a member of a credit union. When you call with questions, you’ll speak with real people who know your local market conditions and understand the challenges facing California homebuyers today.
When comparing home loans between credit unions and traditional banks, you’ll often find that credit union mortgage rates tend to be more competitive. Credit unions tend to offer lower interest rates on mortgage loan products compared to conventional banks, helping members save money over the life of their loans.
Credit unions typically offer reduced closing costs compared to traditional lenders. Our not-for-profit structure allows us to pass savings directly to members through lower origination fees, processing charges and other closing expenses.
For first-time home buyers, we offer several ways to minimize closing costs:
- No-closing-cost mortgage options on qualifying ARMs that can save up to $10,0001
- Lender credits to offset closing expenses for qualified borrowers4
- Transparent fee structures with no hidden charges
- Closing cost assistance programs for eligible first-time buyers1
Understanding the loan refinancing process can also help you plan for potential future savings as your equity grows.
Every homebuying journey is unique. Simplify yours by starting here.
Every homebuying journey is unique. Simplify yours by starting here.
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Make sure you’re financially ready
Before you dive into the homebuying process, ensure you’re financially prepared. This might involve improving your credit score, saving more for a down payment and closing costs, or planning for ongoing expenses like property taxes.
Get Your Home Loan Documents Ready
Prepare for a smooth closing by getting your home loan documents in order. Gather necessary paperwork, such as proof of income, tax returns and bank statements. Ensure all documents are complete and accurate to avoid any delays. This preparation will help you finalize your loan and close the deal with confidence.
Home Rewards with Free MLS Access
Start your home search with our Home Rewards program, a free benefit for credit union members. Save your searches, stay updated on price changes and receive notifications for new listings. Enjoy expert guidance from local real estate agents and earn up to a 20% rebate on the agent’s commission. Begin shopping with confidence!
Stores from our members
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California Credit Union provided invaluable guidance throughout my first home-buying process. Their team secured the best possible home loan terms and consistently went above and beyond. I look forward to collaborating with them on future endeavors.
California Credit Union is a wonderful organization for Californians striving for the dream of homeownership. Their fair and competent team makes the dream a reality.
We had an excellent experience working with California Credit Union as our lender! From the very beginning, their team was professional, knowledgeable and incredibly responsive, making the entire loan process smooth and stress-free. They took the time to explain every step in detail, ensuring we understood our options and felt confident in our decisions. Their dedication and expertise helped us secure a great loan with favorable terms, and they worked diligently to keep everything on track for a timely closing. We highly recommend California Credit Union to anyone looking for a trustworthy and efficient lender.
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We’re here to take your financial confidence to the next level.
Dive into our Learn Center to explore various homebuying topics and gain insights into the process. Whether you're looking for tips on saving for a down payment, understanding mortgage options or navigating the closing process, our resources will help you make informed decisions.
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Credit Basics
How To Build Good Credit
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Calculators
Mortgage Closing Cost Calculator
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Calculators
Home Affordability Calculator
Terms and Conditions
All loans subject to approval.
1 California Credit Union will pay your non-recurring closing costs including but not limited to: lender’s title insurance, title services, appraisal, tax service, credit report, flood certification and recording fees up to an amount of $10,000 or the amount charged by the service providers, whichever is less. If you pay this loan off earlier than the 36-month anniversary date of the loan closing, you will be obligated to pay California Credit Union a prorated amount of the closing costs. This amount will be added to any loan payoff amount requested prior to the 36-month anniversary date. This does not include prepaid interest, homeowner’s insurance, initial escrow deposit, owner’s title insurance, or city and/or county transfer tax. Other restrictions may apply. Offer good for a limited time only and is valid on 5/5, 7/6 and 10/6 ARMs (Adjustable Rate Mortgages) on owner-occupied purchases or refinances. All loans subject to approval. Rates, terms and conditions are subject to change.
2 As of February 21, 2024, this example 5/5 ARM (Adjustable Rate Mortgage) payment provided assumes the purpose of the loan is to purchase a property, with a loan amount of $300,000 and an estimated property value of $400,000. The property is located within Los Angeles county. The property is an existing single family home and will be used as a primary residence. The assumed credit score is 760. The rate lock period is 45 days. Rates may increase or decrease during the life of the loan, and are indexed to the 30-day Constant Maturity Treasury Index (CMT), with a margin of 2.375%, as published in the Federal Reserve Bank of New York. The initial interest rate will not change during the first 60 months, and will adjust according to the current index plus a margin every 60 months. At a 6.625% initial interest rate, the APR for this loan type is 7.505%, and is subject to increase after consummation. Based on current market conditions, the payment schedule would be: 60 payments of $1920.93 at an interest rate of 6.625%, 299 payments of $2193.94 at an interest rate of 8.125%, 1 payments of $2179.19 at an interest rate of 8.125%. If an escrow account is required or requested, the actual monthly payment will also include amounts for real estate rates and homeowner’s insurance premiums. These loan offers are subject to credit approval and satisfactory appraisal. No application fee. Other restrictions may apply. Programs, rates, terms and conditions are subject to change.
3 As of February 21, 2024, an example principal and interest payment on a $500,000 fixed-rate loan at 7.069% annual percentage rate for 30 years is $3,326.51. This payment example does not include taxes and insurance premiums; actual payment will be higher. These loan offers are subject to credit approval and satisfactory appraisal. No application fee. Other restrictions may apply. Programs, rates, terms and conditions are subject to change.
** 4 California Credit Union will provide a lender credit for your non-recurring service costs: loan origination fee, appraisal fee, credit report and flood certification up to an amount of $3,000 or the amount charged by the service providers, whichever is less. This does not include prepaid interest, homeowner’s insurance, initial escrow deposit, owner’s title insurance, or city and/or county transfer tax. Other restrictions may apply. Offer good for a limited time only and is valid on select 30 Year Fixed Rate owner-occupied transactions. Loan must be eligible for sale to investor(s). As of February 21, 2024, an example principal and interest payment on a $500,000 fixed-rate loan at 7.069% annual percentage rate for 30 years is $3,326.51. This payment example does not include taxes and insurance premiums; actual payment will be higher. These loan offers are subject to credit approval and satisfactory appraisal. Other restrictions may apply. Programs, rates, terms and conditions are subject to change.
5 Home Rewards subject to change without notice. Program Cash Rewards are awarded by Home Rewards Group, Inc. to buyers and sellers who select and use a real estate agent in the HomeSmart network. Home buyers or sellers are not eligible for Cash Rewards if they use an agent outside this network. Using California Credit Union for a mortgage is not a requirement to earn Cash Rewards. Cash Rewards amounts are dependent on the commissions paid to the agent. Rebate for home purchase only is 20%. Rebate for home sale and purchase is 20% for each transaction. In order to receive the 20% rebates, the home sale and purchase transactions must take place within six months of each other. Commission Rebates are not allowed in the following states: Alabama, Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon and Tennessee. 20% escrow services discount guarantee paid by Escrow Options at the close of transaction. Escrow Options is not affiliated with California Credit Union.
*A reduced Annual Percentage Rate (APR) of 1/8 of a percent (0.125%) will be applied on a new Adjustable-Rate Mortgage (ARM) upon establishing a direct deposit to an existing or new California Credit Union checking account, which is greater than or equal to the principal, interest, taxes and insurance (PITI) plus Private Mortgage Insurance (PMI) of the mortgage loan (Relationship Pricing Discount). You will receive the benefit of the Relationship Pricing Discount, upon approval, for the life of the ARM loan so long as you continue to fulfill all eligibility requirements. ARMs are variable, and your interest rate may increase after the original non-variable rate period based on the market but will never be higher than 11.25% or lower than 2.375%. As of 2/26/2024, the current APR for an ARM loan is 6.541%, which is based on a purchase transaction of single family residence and a 5/5 ARM with an 80% loan-to-value (LTV) and a FICO score of 760 so your APR and terms may differ. Offer good for a limited-time only and is valid on 5/5, 7/6 and 10/6 ARMs on owner-occupied purchases.
