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Mortgages

people sitting around picnic table at night with fairy lights Whether you’re a first-time home buyer, relocating, or looking to refinance your existing home loan, we are your trusted resource. You can count on Sun East for personal service, competitive rates and low fees to meet your particular home buying or refinancing needs. We offer Fixed-Rate Mortgages, Adjustable-Rate Mortgages, FHA & VA Mortgages, and Jumbo Mortgages. Sun East is a full-service mortgage provider, offering a comprehensive range of services.

See today’s rates, shop for a home, get a free quote, or apply now to start your brief 20-minute application.

The mortgage loan process is not complicated or painful, and our Mortgage Champions make it even easier. Contact us today!

Email mortgagechampions@suneast.org
or call (610) 485-2960 x765

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ARM vs. Fixed Rate

ARM vs. Fixed Rate Mortgage

Buying vs. Renting

The chart shows a cost comparison for a renter and a homeowner over a 7 year period. The renter starts out paying $800 per month with annual increases of 5% The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000. After 6 years, the homeowner’s payment is lower than the renter’s monthly payment. With the tax savings of homeownership, the homeowner’s payment is less than the rental payment after 3 years.

*Commentary Source: National Association of Realtors

#Chart source: Ginnie Mae

Learn About Our Mortgage Options

Sun East offers mortgage solutions for all situations. Monthly mortgage payments can be LOWER than RENT, and you build equity with a mortgage (which allows you to use the accrued equity in your home for other pursuits)

There are down payment assistance programs available for qualified borrowers

Fixed-Rate Mortgage

Your principal and interest payment will never increase since your rate won’t change for the life of your loan.

Adjustable-Rate Mortgage

Adjustable-Rate Mortgages (ARMs) have interest rates that change at a pre-determined frequency.

FHA Mortage

This is a great alternative for those who need flexibility in credit, income, and equity/down payment requirements.

VA Mortgage

For veterans, active military, and their families, this program offers lower interest rates with higher loan limits.

Medical Professional Mortgage

For qualifying medical professionals. Medical professional mortgage loans have high loan limits and these no-money-down mortgage solutions don't require private mortgage insurance (PMI).

Learn More

Frequently Asked Questions from First Time Homebuyers

How do I get my pre-approval letter?

To begin, you may contact one of our Mortgage Loan Originators at 610-485-2960 ext. 765 or e-mail mortgagechampions@suneast.org. After your mortgage consultation, the Mortgage Loan Originator will submit your application. Once your application has been submitted, it will be sent to the concierge and then a loan officer for review. The loan officer will reach out and inform you if you are pre-approved up to the amount you requested.

If you are pre-approved, your pre-approval is valid for up to 90 days.

If you do not find a home in this time frame, that’s okay! Your Mortgage Loan Originator can assist you with a re-approval. Keep in mind, a re-approval will require another credit pull.

Who qualifies for first-time homebuyer benefits?

A first-time homebuyer is typically someone who is purchasing a home for the first time OR if you have owned a home in the past but you have not owned a home within the past 3 years.

Do you pull my credit? What credit score do I need to qualify?

The minimum credit score required for an FHA mortgage is a 580 or higher. The minimum credit score required for a conventional mortgage is a 620 or higher.

A credit score is pulled during the application via a hard inquiry. We collect all three scores (Transunion, Equifax, Experian) and we will use your average score. If this is a joint application, we will use the lower of the two average scores. In addition to the credit inquiry at the application, we do a soft pull before closing. If there are changes to your credit we may not be able to close. We ask that you do not open any additional loans or credit lines. We ask for you to continue to make payments on your existing loans and to not make any changes to your credit. If your credit changes before closing, this can affect the status of the loan.

As a first-time homebuyer, how much money do I need for a down payment?

If you qualify for a conventional mortgage which requires a credit score of 620+ (among other factors), the down payment required for a conventional loan of a primary residence is 3%. If you qualify for an FHA (Federal Housing Administration) mortgage which requires a credit score of 580+ (among other factors), the down payment required for an FHA loan of a primary residence is 3.5%.

For example: if you are purchasing a home for $100,000 you will need a down payment of at least $3,000 (3%) or $3,500 (3.5%). The down payment is only applied to the principal of the purchase.

Aside from my down payment, what other cash do I have to bring to settlement?

You will need to provide funds for closing costs and pre-paid items (see the next two questions for details).

What are closing costs? How much are they?

Closing costs are fees associated with your home purchase that are paid at settlement. Typically, home buyers will pay about 2-5% of the purchase price of their home in closing fees. Once you have found your home, we can provide you a clearer idea of your closing costs as they are unique for each home.

What are pre-paid items?

When purchasing a home, you must provide taxes and insurance “pre-paid”. For a purchase, you must provide 12 months of pre-paid homeowner’s insurance and 10 months of pre-paid property taxes. In addition to the pre-paid taxes and insurances, we also require 2 months of taxes and insurances to fund or “start-up” your escrow account. (14 months insurance & 12 months of taxes)

Can I roll in my down payment, the closing costs and the pre-paid items?

When purchasing a home, you cannot roll in your down payment, closing costs or pre-paid items as there is no equity/ownership to draw from. These funds must be paid out of pocket.

What does an “escrow account” mean?

An escrow account will be set up by the lender to collect and hold funds to pay certain property-related expenses. These often include property taxes, homeowner’s insurance, flood insurance, and mortgage insurance. An escrow account is a convenient way to have Sun East manage the payment of your tax and insurance bills for you.

To set up your escrow account, we’ll divide your projected annual tax and insurance bills by 12 and add the amount to your monthly mortgage payment.

How long does settlement take?

Typically, settlement will be about 45-60 days from receiving your agreement of sale.

What will my interest rate be?

Your rate will be clearer with your application. The rate is not locked in until we have received an agreement of sale, the application is approved, requested items (such as paystubs, driver’s license, etc.) are sent to your First Heritage loan officer and initial disclosures are digitally signed. Your loan officer can assist you with locking in your rate.

Does Sun East offer a 15-year mortgage?

We offer a variety of options to our members! For a conventional mortgage, we currently offer terms of 10 years, 15 years, 20 years, and 30 years. For an FHA mortgage, we currently offer terms of 15 and 30 years.

The term can have an effect on your monthly payment and your rate. For example, if you take a 30-year loan, the payments may be smaller monthly as they are spread out longer.

If you choose a shorter term, it may increase your monthly mortgage payment. However, you will be paying off your loan faster and paying less towards interest.

Can you help me find a realtor?

Absolutely! We have a wonderful team of realtors that can help you find your dream home.

Can I take advantage of Sellers Assist?

You are more than welcome to request assistance from the seller up to 3% with a conventional mortgage and 6% with an FHA mortgage.

Sellers assist does not reduce the purchase price however it is a contribution from the seller toward the buyer’s settlement costs. You can request this however it is not a guarantee. Our realtors can assist you with this request!

What states do you lend in?

We currently lend in Pennsylvania, Delaware, Florida, New Jersey, Maryland, West Virginia, and Ohio!

Will an appraisal be done on the house I am buying?

An appraisal is required because we need to know that we are not lending you more money than your home is worth. The appraisal provides the lender the value of the property. An appraiser looks at things like overall property values in the neighborhood and the general condition of the property.

You have a few options if your appraisal comes in lower than what you offered on the home. You can:

Renegotiate the purchase price with the seller
Bring a larger down payment and lower the amount of money you’re borrowing
Request a new appraisal
Cancel the sale and continue pursuing a different property

What is the maximum “loan-to-value” aka LTV?

If you purchasing a one-unit primary residence with a conventional loan as a first-time homebuyer the maximum LTV (loan to value) is 97%.

If you purchasing a primary residence with an FHA loan the maximum LTV (loan to value) is 96.5%.

If I am preapproved for $200,000 and I find a home for $150,000 can I use the extra $50,000 towards repairs and/or the out of pocket costs?

No, unfortunately you cannot. If you find a home that is worth $150,000, we can still only lend up to 96.5%-97% of its value. Even if you are pre-approved up to the $200,000 in this example, you do not get the excess as cash.

What is mortgage insurance? Do I need to pay it?

Mortgage insurance is a monthly fee you pay to protect the lender in the event that you default on the loan.

For a conventional loan, mortgage insurance is required for if you are financing over 80% of your home. Once you have accrued 20% equity in your home, you may request to remove the mortgage insurance. Once you have accrued 22%, the mortgage insurance is automatically removed.

For an FHA loan, mortgage insurance is required for the lifetime of the loan.

Mortgage insurance is not the same as homeowner’s insurance.

How do I set up homeowners’ insurance?

We partner with Liberty Mutual and if you’d like, we will send your information directly to them for review.

How will you calculate my DTI (debt to income)?

Your DTI ratio is how lenders compare the amount of debt you have to your income.

We will dig up all of your recurring monthly expenses to calculate your DTI ratio. We will include things like rent, student loan payments and minimum credit card payments. We do not include expenses that vary from month to month, like utilities or grocery bills.

We divide your total monthly debts by your total monthly pre-tax income to find your DTI ratio.

For example, if your total monthly household income is $5,000 and you pay $2,000 a month in recurring expenses, your DTI ratio is 40%.

Most lenders like to see applicants with a DTI ratio of less than 50%. If your DTI ratio is more than 50%, you may want to take some time to pay down debt before you apply for a mortgage.

If your DTI ratio is less than 50%, schedule your mortgage consultation!

What income documentation will you need?

The loan officer will ask for 30 days of paystubs during the application and again before settlement.

If you are self-employed, she will require the last 2 years of federal tax returns.

Income from part-time jobs, bonuses, commissions, and overtime can only be used if you are receiving it on a consistent basis for at least the last 2 years.

If you are retired or on Social Security, she will request proper documentation.

Are student loans factored in DTI?

Yes, the loan officer will review your credit report and provide you with guidance on documentation required and how your student loans factor into your DTI.

What if I just graduated and do not have 2 years of employment history?

That’s okay as long as you are using your degree in your current job!

Will you ask for copies of my bank statements?

The assets you have are important to show that you are able to pay for the closing costs, down payment, etc. We recommend to leave your funds where they are (if they are in bank accounts).

If the funds are in the form of cash at home, deposit them immediately. We need to see a paper trail of at least 60 days.

If the funds are moved, this can have an effect on your eligibility to close the loan and can delay settlement.

The loan officer will ask for 60 days of statements for your bank accounts, retirement accounts, etc. during the application and again before settlement.

Can I accept cash from family towards my home?

You are welcome to receive “gift funds” but they must be from a family member and we require a written statement saying that you are not liable to pay the funds back.

You cannot accept borrowed funds from a family member.

The funds your family member gives you must have the paper trail mentioned before. We will need bank statements from them to confirm the funds.

Can I purchase a mobile home or a manufactured home?

The mobile home must be a double-wide.

Manufactured and mobile homes must already be permanently fixed to the property and there cannot be a lot rent.

Can I buy land and build a home?

We do not offer builder loans, construction loans, or land loans. You must be purchasing a home that is already permanently fixed to the property and you must own the land.

Do I have to be a member with Sun East to apply for a mortgage?

You not need to be a member to apply but a membership will need to be approved and established before closing – and we can help you with this!

It’s a small $5 deposit to buy a share of the Credit Union. If you are doing a joint application, both members must be on the same account at Sun East.

Who do I call to start this process? How long does the application take?

This FAQ section has been provided because we believe it is incredibly important our members feel confident and educated as they enter the homebuying process.

To begin, you may contact one of our Mortgage Loan Originators at (610) 485-2960 x765 or send an email to mortgagechampions@suneast.org.

A mortgage application typically takes 30-45 minutes. We will set aside plenty of time to walk you through the steps and answer your questions. We look forward to hearing from you!

Mortgages

See today’s rates, shop for a home, get a free quote, or apply now to start your brief 20-minute application.

Buying vs. Renting

Learn About Our Mortgage Options

Mortgage Benefits

Frequently Asked Questions from First Time Homebuyers