Once you’re pre-approved, it’s time to find the ideal home. As you begin searching, think about what you want in a home. Remember to stick to the homebuying budget you created, look at not one but many different properties, and prioritize the ones you like by ranking location, features, and layout.
First-Time Homebuyer
Your First Home Awaits
Buying your first home is an exciting milestone, ProFed Credit Union is here to make the process as easy as possible. Our first-time homebuyer loans provide you with the financial support needed to turn your dream of homeownership into a reality.
The journey toward homeownership can be overwhelming, especially if it’s your first time, but let’s walk through it together. Check out our requirements and resources to get started.
See Rates Apply NowFirst-Time Homebuyer Benefits & Requirements
BenefitsDiscounted interest rate and closing costs 30-year term ProFed underwriting and servicing |
RequirementsHas not purchased a property in the last 3 years Minimum 3% down payment Subject to credit, income, and asset review |
What You Need To Know About Mortgages
Benefits & Costs Of Owning A Home
5 Steps To Homeownership
Budget For A New Home
Home Loan Rates
Apply Now| Loan Product | Maximum Loan to Value (LTV) | Minimum Loan | Term | Rate as low as | APR* as low as |
|---|---|---|---|---|---|
| Conventional Mortgage | Up to 100% LTV | No Minimum | 10, 15, 20, 30 Year - Fixed Rate | Click here for current rates | First-Time Homebuyer | Up to 97% LTV | No Minimum | Up to 30 years - Fixed Rate | Click here for current rates |
| USDA Loan | Up to 100% LTV, 101% with Guarantee USDA Fee | No Minimum | 30-year Fixed Term | Contact us for current rates | ARM Loan | Up to 100% LTV | No Minimum | 5/1 & 7/1 - Variable Rate | Click here for current rates | Construction Loan | Up to 95% LTV | No Minimum | Flexible Terms - Fixed Rate | Click here for current rates |
| Land Loan | Up to 75% LTV | No Minimum | 15-year Fixed | Contact us for current rates | $475 Refi | Up to 80% LTV | No Minimum | Up to 180 Months - Fixed Rate | Click here for current rates |
| Renovation Loan | Up to 97% LTV | No Minimum | Up to 30-year Fixed Rate | Contact us for current rates | |
| Home Equity Loan | Up to 80% LTV | $10,000 | 12 - 120 Months - Fixed Rate | 7.490% | 7.490%** |
| Home Equity Loan | Up to 81 - 90% LTV | $25,000 | 121 - 180 Months - Fixed Rate | 7.740% | 7.740%*** |
| Home Equity Line of Credit | Up to 80% LTV | $10,000 | 120 Months - Variable Rate | 6.750% | 6.750%**** |
Membership at ProFed is required. *The annual percentage rate (APR) listed are our best rates. Home Equity Rates were last updated on 2/11/26. Your rate may vary depending on your credit score. **Annual Percentage Rate is based on a loan amount of $10,000 and a term of 120 months. ***Annual Percentage Rate is based on a loan amount of $25,000 and a term of 180 months. ****The Rate for the Home Equity Line of Credit is based on prime (index), as published in the Wall Street Journal on the last day of the month, plus a margin. The Annual Percentage Rate is based on a $10,000 line of credit.
RESOURCES — Step 1: Prepare To Become A Homeowner
Credit Score, Budget, and Down Payment
What’s your credit score? A credit score tells a lender how likely you are to pay a loan back on time based on your credit history.
Understanding how your credit score impacts your interest rate for your mortgage. Things that affect your credit score include amounts owed, payment history, length of credit history, credit mix, and new credit. In addition to your lender pulling your credit, you can order a free credit report every 12 months from Equifax, Experian, and Transunion. ProFed also offers a free Credit Score Tool inside ProFed Digital Banking, where you can keep tabs on your credit score.
What’s your budget? If you already have a budget created, you may have an idea of how much home you can afford. If not, a standard guideline is the 36% rule, meaning your total monthly debt should stay below 36% of your gross income. Use ProFed’s calculator to see how much home you can afford.
What's a down payment? A down payment is an amount a borrower pays upfront when purchasing a home. The larger the down payment, the lower your interest rate is because it’s less risky for the lender when the buyer has more equity in the home.
Example:
| Gross Household Income (before taxes) | $60,000 |
| Divide by 12 for Monthly Income (60,000/12) | $5,000 |
| Multiply by 36% to determine debt maximum (5,000x36) | $1,800 |
| Subtract Current Monthly Debts | --$300 |
| Maximum Mortgage Payment* | $1,500 |
*Mortgage payment includes Principal, Interest, Taxes and Insurance (PITI)
See how much home you can afford.
Calculate NowDetermine how much of a down payment you should make on your new home.
Calculate Now
Step 2: Process Of Buying A Home
Preapproval Process, Homebuying Tips, Find The House
The next step in buying a home is to get pre-approved. Work with a financial institution like ProFed to get pre-approved for an amount you can borrow to purchase your home.
What Documents Does a First-Time Homebuyer Need?
You must gather many documents to get pre-approved for your first-time homebuyer loan. These required documents often include: identification, savings and checking statements, tax returns, W-2s, employment history, and paycheck stubs that include YTD income.
Financial Tips For a Successful Loan Application
- Organize your finances: Keep records of income, assets, debts, and any gift funds, including bank statements and receipts.
- Maintain stability: Avoid changing jobs, employers, or income sources during the homebuying process.
- Save strategically: Plan ahead for your deposit, down payment, and closing costs.
- Protect your credit: Be mindful of credit pulls and avoid opening or closing credit accounts.
- Avoid major financial changes: Don’t make large purchases or transfer or deposit large sums without consulting your loan officer.
- Communicate openly: Ask questions, be transparent, and keep your homebuying team informed to minimize stress and avoid issues.
See if you should pay discount points.
Find out what your loan-to-value ratio is for your home.
Estimate your monthly mortgage payments.
Step 3: You’re A Homeowner!
Congrats, homeowner! After you’ve closed on your home, here are some tips to get started.
First-Time Homeowner Tips
- Celebrate with family and friends
- Update your address on your utilities, mail, ID, car registration and insurance, voter registration, address on bank and credit card accounts, address for employer, etc.
- Give thanks to the team of homebuying experts, including your real estate agent, lender, etc.
- Meet your neighbors
- Secure local experts in the area like a doctor, vet, etc.
- Manage your mortgage loan payments (+ more) in ProFed Digital Banking
Check ProFed’s current mortgage rates.
Compare mortgages – 15, 20, 30 year.
Find the ideal home?
Learn Who & What Is Involved In Becoming A Homeowner
There are many experts involved on the road to becoming a homeowner. It’s essential to know how each expert is involved in the process.
8 Homebuying Experts
- Real estate agent: A person who acts as an immediate between sellers and buyers as they attempt to find real estate or property for their client.
- Property inspector: A professional hired to inspect a property and find any issues.
- Mortgage lender: A financial institution that loans you money.
- Underwriter: A representative from a financial institution who determines whether to approve or deny your loan.
- Appraiser: An expert whose job is to assess the value of the property you are purchasing.
- Loan officer: A representative from a financial institution who assists borrowers in the application and mortgage process.
- Loan processor: A representative who deals with the mortgage loan's eligibility, analysis, and processing.
- Closing or settlement agent: This role may be filled by a real estate agent, attorney, or title company who conducts the closing meeting of the purchase.
Experts, Terms & Mortgage Payment
Throughout the homebuying process, you may hear familiar or unfamiliar terms used. Here is a list you can reference.
9 Homebuying Terms
- Annual Percentage Rate (APR): The entire year's interest rate applied to your loan.
- Debt-to-income (DTI) Ratio: All your monthly debt payments are divided by your gross monthly income to tell you how much you owe each month vs. how you earn.
- Loan-to-value (LTV) Ratio: The mortgage loan amount divided by the property's value.
- Preapproval: Qualification for a loan of a specific value range.
- Escrow: A portion of your monthly payment is held in an account to help pay property taxes and insurance when they come due.
- Equity: Property you've paid off and own.
- Points: Often called discount points, borrowers pay a one-time fee to lower the interest rate on their mortgage.
- Gross Income: Your income before taxes or deductions.
- Closing Costs: The costs to close the purchase, which usually include origination and underwriting fees, taxes, insurance premiums, title/record filings, etc., comprise 3-6% of the total mortgage loan.
What will your monthly mortgage payment look like?
A monthly mortgage payment has four parts, which can be shortened to the acronym “PITI.”
Monthly Mortgage Payment - PITI
Principal: The part of your monthly mortgage payment that decreases the balance of your loan.
Interest : The part of your monthly mortgage payment put towards the interest on your loan.
Taxes: The part of your monthly mortgage payment held in escrow until tax payments are due.
Insurance: The part of your monthly mortgage payment held in escrow until your insurance payments are due.
Frequently Asked Questions
ProFed’s first-time homebuyer loans are designed to help you buy your first home with confidence and affordability. You’ll enjoy competitive rates, flexible options, and personalized guidance from our local lending experts.
You qualify if you’ve never owned a home—or haven’t owned one in the last three years. ProFed helps members of all backgrounds take that first big step into homeownership.
With ProFed, you may be able to buy your first home with as little as 3% down, depending on your loan type. Our lenders will walk you through available programs to help make your down payment more affordable.
ProFed offers flexible options for a variety of credit situations. While a 620+ score is common for most programs, our team looks at your whole financial picture, not just a number.
Yes! We can help connect you with local and state first-time homebuyer assistance programs to lower your upfront costs. Our local lending experts know what’s available in your community.
ProFed offers low down payments, competitive rates, flexible terms, and local decision-making—plus the personal support you won’t find at big banks.
Absolutely! Getting preapproved with ProFed helps you understand your budget and makes you a stronger buyer when you make an offer. It’s quick, easy, and gives you confidence when shopping for your first home.
ProFed offers a range of mortgage options, including conventional and USDA loans. Our team will help you compare them and find the best fit for your needs and budget.
Your loan amount depends on factors such as your income, credit history, and existing debts. ProFed’s local mortgage team can help you calculate a monthly payment that fits your lifestyle. Want to explore on your own? Try our easy-to-use calculator —just tap or click here.
You can apply online, visit your local ProFed branch, or talk with a mortgage expert. We’ll guide you step-by-step—from preapproval to closing—so your first homebuying experience feels simple and exciting.
Questions?
Reach out to our team to set up an in-person or virtual appointment.
Schedule Appointment