Mortgage Loans

Low Down Payment Mortgage Programs

If you don’t qualify for a traditional mortgage, don’t give up. CoVantage Credit Union can guide you to programs that may help you purchase your home.

Struggling to save up for a down payment? You may not have to.

It’s not easy to earn or save enough money to buy a house. The good news is that there are federal, state and CoVantage programs that often offer flexible eligibility requirements. That means you might be able to achieve the dream of home ownership with lower down payments, credit scores and cash reserves. CoVantage lenders are standing by, ready to answer all your questions about these programs.

CoVantage Creates HOMES

  • ​In-house funding with eligibility for interest rebate program
  • NO Private Mortgage Insurance (PMI) required
  • 3% funds into transaction
  • No minimum credit score

 

  • Property must be owner occupied
  • May be able to incorporate repairs into the financing
  • Home buyer education is required

Rural Development

  • 30- year fixed-rate loans offered through the United States Department of Agriculture
  • Closing costs may be financed on some transactions
  • Seller contributions are allowed
  • Borrowers have the opportunity to finance up to 101% of the property’s value

 

  • Applicants may be subject to county income limit requirements and there are restrictions for where the property is located
  • Loans are serviced at CoVantage Credit Union
  • Property must be owner-occupied
  • You don’t have to be a first-time homebuyer to be eligible for this program

WHEDA

  • 30-year fixed rate loan offered through Wisconsin Housing and Economic Development Authority
  • To help with down payment and closing costs, applicants can obtain an easy-close second mortgage for the same rate as the first mortgage
  • There are financing options available for owner occupied homes from a single-family home to a four-unit property

 

  • Applicants do not need to be a first-time homebuyer; however, there may be special financing rates for first-time home buyers, veterans with honorable discharge paperwork or certain County target areas.
  • Home buyer education may be required
  • Loans are originated through CoVantage Credit Union, but serviced in Madison, Wisconsin through WHEDA

DPP

  • Down payment Plus (DPP) is a program funded by the Federal Home Loan Bank of Chicago that provides down payment and closing cost assistance for income-eligible homebuyers
  • The assistance is a forgivable grant at the end of five years
  • Property must be owner occupied

 

  • For purchase transactions only
  • Home buyer education is required
  • $1,000 minimum of home buyers own funds into transaction
  • $6,000 maximum grant

Payments can be made more frequently on personal loans, vehicle loans, or credit cards. Mortgage payments are only accepted monthly.

CoVantage will mail a packet with loan information to every borrower, so watch your mailbox! If you provided an email address at the dealership, you will also receive an email with that information approximately one week after the loan closed. Please note that the loan may not close until one to three days after you sign at the dealership.

You can use MyCoVantage digital banking and mobile app to set up automatic payments from your CoVantage checking or savings account OR from another financial institution (also called an External Transfer). Set-it-and-forget-it using the Transfer/Pay feature today!

To set up a transfer from another financial institution within MyCoVantage, navigate to the Transfer/Pay tab, then select Manage External. Before you can set up a one-time or recurring transfer, you will need to Add a New External Account and create an account nickname you can use to reference the account within digital banking.

Once added, you will need to verify the account by confirming two small amounts to the external account. Then log into MyCoVantage and go back to the Transfer/Pay tab, select Manage External and enter the trial deposit amounts that were sent to the external account. After completing this step, the external account will be ready to use within Transfers.

Please note: External Transfers are not immediate, they are processed in 1 to 3 business days from the date scheduled, provided they are scheduled by 4pm. For example, if you have a loan payment due on Friday, January 15, you will want to schedule the transfer at least 3 business days prior, Tuesday, January 12, to ensure the funds are received by that date.

Unfortunately, if your loan payment becomes 30 days past due, your status as a CoVantage “Member in Good Standing” is jeopardized, which could also affect any digital banking services.  In addition, late payments on loans and mortgages may result in a late fee or negative reporting to credit bureaus. To avoid late payments, set up automatic payments using MyCoVantage digital banking and mobile app.

As a financial cooperative, we depend on all our members to contribute to the credit union and uphold their obligations. It’s working together and sharing our resources that allow us to offer lower loan rates, higher savings rates, and the quality products and services that are a part of the credit union experience. If you are having financial difficulties, please contact our Member Solutions team at 800-398-2667, ext. 2404 to discuss repayment options.

The interest rate is the annual rate you pay on the money you borrow for your mortgage. It establishes 
the initial amount of your monthly principal and interest payments, and will vary unless it’s locked in. 
The APR, which is usually higher than the interest rate, includes certain fees, and other closing costs.

A 1/1 ARM will adjust up or down for the first time after one year, then every year thereafter. A 3/1 
ARM will adjust up or down for the first time after 3 years, then every year thereafter. A 5/1 ARM will 
adjust for the first time after 5 years, then every year thereafter.

When you borrow more than 80% of your home's value, your lender will sometimes require you to obtain Private Mortgage Insurance or PMI. This insurance protects the lender against loss if you default on your home loan. The cost of PMI varies. It is based on the size of the down payment, the type of mortgage, credit score, type of home, and amount of coverage. Pemiums are typically folded into your monthly mortgage payment. Some lenders may offer PMI as a financed premium along with the mortgage. 

There are two different types of title insurance policies when it comes to mortgage loans. When you 
are purchasing a home, the seller provides you, the buyer, with an “Owner’s Title Policy”. This policy 
protects you from anyone making a claim against the home before your purchase. The other title policy 
is known as the “Lender’s Title Policy”. This policy protects the lender incase of any title issues with the 
property after the purchase. The title search that is completed verifies all owners of record and if there 
are any mortgage liens or judgements against the property. Any issues that exist would need to be 
cleaned up prior to closing.

Mortgage escrow account is a federally regulated holding account for homeowners’ insurance premiums, mortgage insurance, and property tax payments. If required or requested, it is set up by your mortgage lender with your loan closing, to ensure timely payments of tax and insurance bills. After a pro-rated initial deposit, the account is funded each month, as part of your total monthly payment, so that the needed billing amounts can be collected over a 12-month period. These accounts are also analyzed each year and will adjust your monthly payment in accordance with the most recently paid out premium or tax bill.