Community Development Corporation of Utah (CDCU) offers the HomeFit™ Mortgage, a loan for qualified homebuyers that is an affordable alternative to other mortgage loans. The HomeFit™ Mortgage finances 100% of the purchase price of the home through two loans – the first 80% is covered through a conventional loan, and the remaining 20% is a second mortgage that is serviced and managed by CDCU’s affiliate, Community Development Fund of Utah.
Because of the two loans, there is NO requirement for mortgage insurance. The interest rate on the second mortgage is 2% higher than the interest rate on the first. Even with the higher interest rate, the combined monthly mortgage payments are less than what they would be on a FHA loan.
There is a 2% minimum contribution required, which is applied towards closing costs. This requirement creates serious buyers who are less likely to default on their mortgage. If you need help saving, CDCU also offers a matched savings program (HomeFit Saver) available to help you work towards saving your 2% contribution. Our homeownership advisors will help you create a personalized savings plan to assist in preparing for your home purchase and reaching your financial goals.
In addition, CDCU’s outstanding home buyer education fully prepares clients for the home purchase process.