No money down on a fully financed mortgage up to $650,000, with no mortgage insurance?
If you think that sounds too good to be true, consider this: In the three years since $1.2 billion asset NASA Federal Credit Union of Upper Marlboro, Md., initiated the zero-down program, there’ve been zero delinquencies and zero foreclosures.
Bill White, NASA Federal’s vice president for real estate lending, credits vigorous loan underwriting, with preferred FICO scores starting in the mid-700s.
The credit union restricts loans to qualifying members buying primary residences in the Washington, D.C., area.
To limit exposure, the longest fixed-rate mortgage is 15 years, with hybrid adjustable-rate mortgages available for shorter terms.
Consumers don’t need to be astronauts to join NASA Federal. Joining the American Consumer Council—a free affiliate—makes consumers eligible for membership.