A financial institution operating from the capitol region is now offering a mortgage product with a 100 percent loan-to-value ratio.
The 100 percent LTV program, which was announced Monday, does not require that home loans be accompanied by private mortgage insurance.
The conventional lending program is available on fixed-rate home loans. The amortization term for the program is 30 years.
Navy Federal Credit Union is providing the 100 percent financing with its proprietary Home Buyers Choice mortgage. The program will be available to its 4 million members.
The Vienna, Va.-based firm says that borrowers on more than half of its purchase financing originations are first-time home buyers without cash reserves to make large down payments.
“The program can enhance the beginnings of mortgage industry’s turnaround,” Navy FCU said.
The credit union claims that loans originated through the program have “solid” performance.
Navy FCU Executive Vice President of Lending Jack Gaffney noted in the announcement that the HomeBuyers Choice program “has been consistent for us, well before and during the downed market, and is primed for the upswing.”
Gaffney said that Navy FCU’s default rate is lower than the national average.
First-quarter mortgage originations were $3.2 billion at Navy, better than the $3.1 billion originated three months earlier and $1.9 billion a year earlier.
In addition, at $1.2 billion — mortgage production during March was the highest on record.
Navy FCU, which claims to be “the world’s largest credit union,” says it employs more than 10,000 people and operates 229 branches.
