February 20, 2019
Is it time to finally buy your dream home? Then, it's time to begin thinking about a mortgage. At La Capitol, we have mortgage products to cover every type of property for every kind of buyer. We also have great interest rates, faster closing times, and options others don’t have — like 100% financing with no PMI.1 We want to get you into your new home as quickly as possible, and we’re ready to help you every step of the way.
Types of Mortgage Lending Loans at La Capitol
Finding the right mortgage for your financial situation requires a little personalization. It has to fit, so La Capitol offers the full range of mortgage lending loans to meet your needs:
- Conventional loans follow guidelines from government-sponsored enterprises and can have either fixed or adjustable interest rates.
- FHA loans are federally insured through the US Federal Housing Authority. La Capitol is an FHA-approved lender.
- VA loans are guaranteed through the US Department of Veterans Affairs. American veterans, military members, reservists and qualifying surviving spouses are all eligible.
- Rural development loans are issued through the US Department of Agriculture’s Rural Development Guaranteed Housing Loan Program.
- Non-conforming loans cannot be sold to government-sponsored enterprises like Fannie Mae or Freddie Mac. These loans remain with La Capitol due to the loan’s amount, for example, the type of property being purchased or a buyer’s personal financial factors.
- Land or lot loans with up to 100 percent financing help buyers purchase a place to build their dream home.2 While land mortgages are typically loans for undeveloped land, lot mortgages are tailored to formal plots in developed subdivisions with roads and utilities.
- Non-warrantable condo loans are similar to non-conforming mortgages as they have features that prevent them from being later sold to government-sponsored enterprises.
- HELOCs and second fixed loans let you borrow against a property that already has a mortgage. HELOCs are home equity lines of credit with variable interest rates while second mortgages lend a set amount with a fixed rate of interest.
Options for No Down Payment and No PMI
Most financial institutions like conventional mortgages. The interest they earn through servicing them year after year is pure profit for their boards and shareholders. The higher the interest, the greater their profit. Typically, they want a deposit of 20 percent of the home’s purchase price to boot.
To approve mortgages with lower down payments, financial institutions typically require PMI — private mortgage insurance — on top of the interest to protect their investment. However, you pay for the PMI, and it can raise your monthly mortgage payment considerably until you reach that magical loan-to-value percentage of 20 percent.
While La Capitol does offer these conventional mortgages, we also have a mortgage lending program with no down payment and no PMI.1 Why is that important? Because this solely benefits you, the purchaser. Our mortgage originators will work with you to find the right mortgage product to get you into your dream home.
Credit Unions Offer Low Interest Rates
At La Capitol, you have access to lower, more competitive interest rates for your mortgage than a bank can give you. How can we do that? Credit unions are structured differently from for-profit banks, and our members are our stakeholders.
You—not bank shareholders—reap the benefit of your own loan through lower rates, and we reinvest any monies we do make into the lending and investment programs we maintain for you. We have an obligation to fulfill our mission — to improve the financial well-being of our members.
Quick, Convenient Closing Timelines
Because you’re a valued member, we can offer faster loan approvals and closings. That gives you bargaining power, makes the lending process stress-free and transforms you from potential buyer into bona fide homeowner.
La Capitol’s closings are not only faster than a conventional bank closing but also lower in cost. Why? Our nonprofit financial structure is built to help us do what makes the most financial sense for you — that means better rates and less runaround.
La Capitol Makes Getting a Home Mortgage Easy
Everyone needs a place to call their own, and La Capitol wants to make home ownership as accessible and easy for you as membership. If you’re ready to take the next step, apply online today. We’re right here in Louisiana, in a neighborhood near you. We know the territory, and we want to serve you. Let us show you just how much house you can afford — and just how easy buying can be.
If you’re still not sure, try our online mortgage calculator to estimate your monthly home payments. It’s quick, easy and commitment-free.
Membership eligibility required.
1 PMI = Private Mortgage Insurance. Other conditions apply, including but not limited to appraisal, title, and maximum loan amount of $300,000. Maximum DTI (Debt to Income ratio) 40%. Minimum credit score of 700. No slow payments in the last 24 months. 24 months of previous mortgage history or rental history. Judgments, liens, voluntary or involuntary repossessions, charge-offs, federal and state tax liens must all be paid in full and released prior to closing. No open or active mortgage(s) allowed in order to qualify for this product. Minimum 24 months of verified employment in the same or related field. Two years of W-2s and tax returns are required. Seller contribution up to 6% allowed. Loans are available to qualified, creditworthy members. The amount of your loan and the term will affect your interest rate. The rate you qualify for will depend on a review of your credit history. Ask for complete details.
2 Land loan financing available up to 100% Loan to value. Other conditions apply, including but not limited to appraisal and title. Maximum DTI (Debt to Income ratio) 40%. Minimum credit score of 660 required for 90% financing; 720 credit score required for 100% financing. Maximum term 10 years. No slow payments in the past 24 months. 24 months of previous mortgage or rental history is required. Judgments, liens voluntary or involuntary repossessions, charge-offs, federal and state tax liens must all be paid in full and released prior to closing. Minimum 24 months of verified employment in the same or related field. Two years of W-2s and tax returns are required. Loans are available to qualified, creditworthy members. The amount of your loan and the term will affect your interest rate. The rate you qualify for will depend on a review of your credit history. Ask for complete details.
3 HELOC interest rates are variable, based on an index plus a margin and may vary after the account is open. The index is PRIME as published in the Wall Street Journal. The rate effective on the first day of the billing cycle will be based on the index as of the last day of the preceding month. The APR range is 5.50% to 18.00%. The rate is subject to adjust monthly. The margin will be based on your credit score, debt ratio, and loan to value – see lender for additional details. There is an annual fee in the amount of $60 which is waived the 1st year. The minimum loan amount is $10,000 with a required initial draw of $1,000. Twenty-four draws (6 per quarter) are allowed annually, with a 5 year draw period and a 10 year payback equaling a 15 year term. Monthly payments are 1.50% of the principal balance during the draw period and amortized to payoff in 10 years when the 5 year draw period is over. Property insurance with La Cap listed as lien holder is required, as is flood insurance if applicable. Loan to value allowed up to 80%. Higher loan to value will be determined on an exception basis. Closing cost will be $0.00 to $900. Closing cost does not include full appraisal fee if appraisal is required. La Cap will pay the closing costs; however, these costs will be charged back to the borrower(s) if the HELOC is closed within twenty-four (24) months of origination. Other restrictions may apply.