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Achieving your American Dream

The right loan program can help San Diegans achieve the American dream of home ownership. San Diego County Credit Union offers home loan programs that meet the needs of current homeowners moving up to a more spacious home, even first-time homebuyers ready to make the leap to home ownership.

With the median home price in San Diego County reaching record highs during the last few years, starter homes are selling for nearly half a million dollars. Purchasing a home with the standard 20 percent down payment is difficult for many homebuyers.

An alternative is the 80/10/10 home loan offered by San Diego County Credit Union. This loan requires only a 10 percent down payment in cash or equity, and then combines a first mortgage for 80 percent of the home's price with a 10 percent equity loan. The 80 percent first trust deed eliminates the requirement for private mortgage insurance.

San Diego County Credit Union will include a 100 percent financing option to its home loan product line beginning in November. Several features set this loan option apart from the other lenders.

First, there is no interest rate increase for 100 percent financing. Many lenders increase the interest rate on 100 percent loans.

Additionally, the borrower's rate for up to 100 percent financing is the same as the 80 percent rate at San Diego County Credit Union. This first trust deed is backed by mortgage insurance purchased by the borrower. The premium may be paid with a single, up-front payment before closing or may be wrapped into the home loan payment.

Homebuyers in need of a lower payment may choose to look beyond the rate and select a longer term.

Next month, San Diego County Credit Union's fixed rate home loan products will include a longer loan-term option. A 40-year home loan provides the same low rate as a 30-year loan. The major benefit to the borrower is a lower payment from amortizing the loan over an additional 10 years.

While many homebuyers are attracted to the certainty of a fixed rate mortgage, the often overlooked adjustable rate loan provides a lower initial rate, lower monthly payments and helps the homebuyer qualify for a larger loan amount.

The low rate stays fixed for one, three, five or seven years, and may adjust annually up or down not to exceed the lifetime cap. Although rates are rising, a seven-year adjustable rate assures the same low payment for a longer period of time.

When you're ready to refinance your existing home or purchase a new home, let the experts at San Diego County Credit Union help you achieve your American dream.

For more information about the credit union or to open an account, visit www.sdccu.com, call toll-free (877) SDCCU-4U or stop by any of our 21 branch offices.

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