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Mortgage Loans

We offer all types of mortgage loans designed to fit any need and goals, all with personalized service and attention to detail. Meet in-person with our experienced mortgage officers at 6832 Stalter Drive in Rockford or at 230 West Monroe, Suite 2850 in Chicago, or we're happy to help you via phone, email, or virtual meeting!

Choose your preferred loan type in the application, or let us help find the best option for you! 

contact our mortgage loan experts Apply Online Check Rates & Learn More

Fixed rate options

Conventional Fixed-Rate Mortgage

  • Rate is fixed over the life of the loan
  • Flexible terms from 10 to 30 years
  • Minimum down payment: 3% for first-time home buyer; 5% for repeat home buyers or co-signer loans
  • Private Mortgage Insurance required with less than 20% down payment
  • Minimum credit score of 620
  • Can use HFA Preferred™, Downpayment Plus®, and employer assistance
  • Great for purchase or refinancing

Federal Housing Administration (FHA) Fixed-Rate Mortgage

  • For first-time or repeat homebuyers
  • Rate is fixed over the life of the loan
  • 3.5% minimum down payment
  • 1.75% Upfront and monthly Private Mortgage Insurance (PMI) required (can be financed into the loan). Lower PMI required with down payment of at least 10%.
  • Minimum credit score of 580
  • Can use HFA Preferred™, Downpayment Plus®, and employer assistance
  • Great for purchase or refinancing
  • Insured by the FHA

Veterans Affairs (VA) Fixed-Rate Mortgage

  • For eligible veterans, reservists, active-duty personnel, or surviving spouses
  • Rate is fixed over the life of the loan
  • Can be used multiple times
  • No down payment or Private Mortgage Insurance required
  • Low closing costs 
  • Minimum credit score of 580
  • Can use HFA Preferred™, Downpayment Plus®, and employer assistance
  • Great for purchase or refinancing

USDA Fixed-Rate Mortgage

  • Available only in certain rural areas
  • Highly competitive fixed rates 
  • 15 or 30 year terms 
  • No down payment
  • Low Private Mortgage Insurance required
  • Minimum credit score of 620

Jumbo Mortgage

  • For loan amounts over $726,2011
  • Fixed or adjustable rate options
  • 15 and 30 year terms available
  • Flexible down payment
  • Private Mortgage Insurance required
  • Low closing costs
  • Owner-occupied 1-2 units
  • 43% maximum debt-to-income ratio 
  • 6 months of mortgage payments must be held in reserves 
  • Minimum credit score of 720
  • Great for purchase or refinancing

Doctors-Only Mortgage

  • Available to medical doctors who have an M.D., D.O., D.D.S. or D.M.D Degree and an employment contract. Medical doctors including Dentists, Podiatrists, Ophthalmologists, Veterinarians permitted (excludes Chiropractors)
  • Fixed or adjustable rate options
  • 15 and 30 year terms available
  • Up to 100% financing
  • No Private Mortgage Insurance required on loans up to $1,000,000 
  • Minimum credit score of 680
  • 50% maximum debt-to-income ratio 
  • Primary residence only 
  • Contact us for more information

HomeReady® Mortgage

  • Designed to help serve today’s credit-worthy lower-income borrowers
  • For first-time or repeat home buyers
  • Terms between 10 and 30 years 
  • Fixed or adjustable rate options 
  • 3% minimum down payment
  • Lower Private Mortgage Insurance required 
  • Minimum credit score of 620
  • Can use HFA Preferred™, Downpayment Plus®, and employer assistance
  • Great for purchase or refinancing
  • If all occupying borrowers are first-time homebuyers, then at least one borrower is required to take homeownership education course, regardless of loan-to-value.

Portfolio Mortgage

  • Your loan remains with FNCU
  • Great option for non-warrantable condos, prior financial struggles, and other unique situations 
  • Flexible terms from 10 to 30 years
  • Fixed or adjustable rate options 
  • 15% minimum down payment
  • No Private Mortgage Insurance required 
  • Flexible minimum credit score

Adjustable rate options 

Traditional Adjustable Rate Mortgage (ARM)

  • Flexible terms from 10 to 30 years
  • Lower initial interest rate than most fixed-rate loans
  • Rates are fixed for an initial time period such as 1, 3, 5, or 7 years. Then, rates can increase or decrease annually, tied to changes in the Index Rate
  • We offer adjustment and lifetime interest-rate caps, which limit the rate increase/decrease from one adjustment period to the next, AND which limit the rate increase over the life of the loan
  • No negative amortization
  • No pre-payment penalties
  • Minimum down payment: 3% for first-time home buyer; 5% for repeat home buyers or co-signer loans
  • Private Mortgage Insurance required with less than 20% down payment
  • Minimum credit score of 620 for Conventional ARM, or we have other options that may work better for you
  • Can use HFA Preferred™, Downpayment Plus®, and employer assistance

Jumbo Mortgage

  • For loan amounts over $726,2011
  • Fixed or adjustable rate options
  • 15 and 30 year terms available
  • Flexible down payment
  • Private Mortgage Insurance required
  • Low closing costs
  • Owner-occupied 1-2 units
  • 43% maximum debt-to-income ratio 
  • 6 months of mortgage payments must be held in reserves 
  • Minimum credit score of 720
  • Great for purchase or refinancing

Doctors-Only Mortgage

  • Available to medical doctors who have an M.D., D.O., D.D.S. or D.M.D Degree and an employment contract. Medical doctors including Dentists, Podiatrists, Ophthalmologists, Veterinarians permitted (excludes Chiropractors)
  • Fixed or adjustable rate options
  • 15 and 30 year terms available
  • Up to 100% financing
  • No Private Mortgage Insurance required on loans up to $1,000,000 
  • Minimum credit score of 680
  • 50% maximum debt-to-income ratio 
  • Primary residence only 
  • Contact us for more information

HomeReady® Mortgage

  • Designed to help serve today’s credit-worthy lower-income borrowers
  • For first-time or repeat home buyers
  • Terms between 10 and 30 years 
  • Fixed or adjustable rate options 
  • 3% minimum down payment
  • Lower Private Mortgage Insurance required 
  • Minimum credit score of 620
  • Can use HFA Preferred™, Downpayment Plus®, and employer assistance
  • Great for purchase or refinancing
  • If all occupying borrowers are first-time homebuyers, then at least one borrower is required to take homeownership education course, regardless of loan-to-value.

Portfolio Mortgage

  • Your loan remains with FNCU
  • Great option for non-warrantable condos, prior financial struggles, and other unique situations 
  • Flexible terms from 10 to 30 years
  • Fixed or adjustable rate options 
  • 15% minimum down payment
  • No Private Mortgage Insurance required 
  • Flexible minimum credit score

Down Payment Assistance Programs

The following programs can be in addition to your mortgage, and may help save you money!

Since 2014, First Northern has partnered with the Illinois Housing Development Authority (IHDA) to offer members specialized homebuyer programs.  These programs are ideal for members wishing to buy a home that need extra flexibility or who have limited funds for down payment and/or closing costs, yet have the financial means to maintain monthly mortgage payments.

Opening Doors

  • Available to First-Time and Non First-Time Homebuyers
  • A no-monthly payment, forgiveable down payment assistance loan with no replayment unless sold or refinanced before the 5-year forgiveness period.
  • Down Payment Assistance Amount: $6,000

Learn More

IHDAccess Forgiveable

  • Available to First-Time and Non First-Time Homebuyers
  • A no-monthly payment, forgiveable down payment assistance loan with no replayment unless sold or refinanced before the 10-year forgiveness period.
  • Down Payment Assistance Amount: 4% of Purchase Price (up to a max of $6,000.00)

Learn More

IHDAccess Deferred

  • Available to First-Time and Non First-Time Homebuyers
  • A no-monthly payment, deferred down payment assistance loan. Payment is due when you sell or refinance.
  • Down Payment Assistance Amount: 5% of Purchase Price (up to a max of $7,500.00)

Learn More

IHDAccess Repayable

  • Available to First-Time and Non First-Time Homebuyers
  • A zero-interest repayable down payment assistance loan. Monthly payment is required.
  • Down Payment Assistance Amount: 10% of Purchase Price (up to a max of $10,000)

Learn More

Unsure if you qualify for one of these programs?

Contact our mortgage team and let them know you're interested in an IHDA Program: call 888-328-8677, email us at mortgagegroup@fncu.org, or contact one of our Mortgage Loan Experts directly. 

 

DISCLAIMER: All program funding and availability is subject to change at any time, and is not guaranteed until the lender places a complete reservation with IHDA Mortgage. Potential borrowers must meet all applicable program guidelines and income/purchase price limits for the county the property is located in to be eligible. Detailed program guidelines and requirements can be found in the procedural guide posted in the IHDA Document Library. 

If you want to buy a home and have a steady income and good credit, First Northern Credit Union and the Federal Home Loan Bank of Chicago can help.

Downpayment Plus® is a program that provides down payment and closing cost assistance for income-eligible homebuyers. Through the Downpayment Plus Program*, up to $10,000 may be available to eligible homebuyers to use toward down payment and closing costs.

Homebuyers must meet income eligibility requirements and:

  • Contribute at least $1,000 to the purchase of the home
  • Complete pre-purchase homebuyer education and counseling
  • Live in the home as your primary residence

How does it work? 

  1. Contact our mortgage team: Downpayment Plus is offered by members of Federal Home Loan Bank of Chicago, including First Northern Credit Union. 
  2. Apply: We will collect applicable documentation and complete the Downpayment Plus application process on your behalf.
  3. Gain approval: We will work with the Federal Home Loan Bank of Chicago to review your application and eligibility. We can answer any questions you may have about the Downpayment Plus process, so you have a single, local point of contact—your Mortgage Loan Officer at First Northern.
  4. Prepare: After we have confirmed your Downpayment Plus grant reservation is in place, we will work with you to complete the required pre-purchase education and pre-purchase counseling.
  5. Purchase: Downpayment Plus funds can be used to help with your down payment, closing costs, and/or up to $500 of your homebuyer education and counseling costs if you meet eligibility requirements.  We can help you understand how Downpayment Plus will work with your specific home purchase and needs.
  6. Receive grant: The assistance is provided in the form of a forgivable grant paid on your behalf at the time that you close on mortgage financing with a participating Federal Home Loan Bank of Chicago member financial institution, including First Northern Credit Union. Grants are forgiven on a monthly basis over a five-year retention period.

Questions and want to know if you might qualify? 

Contact our mortgage team and let them know you're interested in our Downpayment Plus Program: call 888-328-8677, email us at mortgagegroup@fncu.org, or contact one of our Mortgage Loan Experts directly. 

 

* Downpayment Plus is a program from the Federal Home Loan Bank of Chicago. Restrictions apply. Please see the Federal Home Loan Bank of Chicago’s website at www.fhlbc.com for complete requirements. “Downpayment Plus” is a registered trademark of the Federal Home Loan Bank of Chicago. 

Get into your new home and make lower monthly payments for the first 3 years with our 2-1-1 Temporary Interest Rate Buydown, in partnership with Fannie Mae. 

A 2-1-1 Temporary Interest Rate Buydown allows you to reduce your effective monthly payment for 3 years through a temporary buydown of the interest rate. Everyone is eligible to enroll for this program and enjoy this benefit! 

How does a 2-1-1 Temporary Interest Rate Buydown work?

  • In a 2-1-1 Temporary Interest Rate Buydown, the effective interest rate that you pay during the first 3 years of your mortgage is reduced as a result of the deposit of a lump sum of money (sometimes called a “subsidy”) into a buydown account at closing. The buydown funds may be provided by the borrower, lender, borrower’s employer, property seller, or other interested parties to the transaction. 
  • A portion of the subsidy is released each month during the first 3 years of your mortgage to reduce your payments.
  • At the end of the buydown period, the buydown funds collected at closing will have been exhausted, and the buydown period ends. See the example below for additional context.

2-1-1 Temporary Interest Rate Buydown Example

Year Interest Rate
1 4.00%
2 5.00%
3 5.00%
4-30 6.00%

Ready to learn more?

Contact our mortgage team and let them know you're interested in our 2-1-1 Buydown: call 888-328-8677, email us at mortgagegroup@fncu.org, or contact one of our Mortgage Loan Experts directly. 

Choose your preferred loan type in the application, or let us help find the best option for you! 

contact our mortgage loan experts Apply Online Check Rates & Learn More

1 $726,201 is the 2023 loan amount threshold and subject to change