Fraud Alert: Be careful with text messages asking you to verify fraudulent transactions. Learn More >

Find answers to our Frequently Asked Questions.
* indicates a required field.
Posted January 17, 2019

Buying a home is stressful. There’s a lot to remember and important things to consider, but it can be easier if you educate yourself and stay informed.

A top concern for those considering buying a home is coming up with a down payment. While there are low down payment programs out there, here are a couple other things to consider.

Mortgage Insurance

Mortgage insurance lowers the lender’s risk of providing the loan to you by insuring the lender. Borrowers making a down payment of less than 20% will typically need to pay for mortgage insurance. It’ll increase your payments or certain costs during the process.

If you get a standard mortgage from a financial institution, they’ll most likely have a list of private companies you can use. This is called Private Mortgage Insurance or PMI. Under certain circumstances, you can cancel it after a period of time.

Piggyback Mortgage

A piggyback mortgage is the term for when a borrower uses two loans at the same time for the same home. It allows borrowers with a low down payment amount to take out additional money to qualify for the first mortgage and avoid mortgage insurance.

Here’s an example breakdown of what this could look like:

  • First mortgage: 80% of the home’s value
  • Second mortgage: 10% of the home’s value
  • Down payment: 10%

In order to qualify for this, you’ll need to meet certain credit score requirements and debt-to-income ratios.


Want to learn more about A+FCU Mortgage options? Visit one of the branches below on a Mortgage Awareness Day to have all your questions answered by an A+FCU Mortgage representative.

San Marcos Friday, January 25 3 pm – 5 pm
Pflugerville Friday, February 1 3 pm – 5 pm
Main Friday, February 8 11 am – 1 pm
Cedar Park Friday, February 15 3 pm – 5 pm
Buda Tuesday, February 19 11 am – 1 pm
Georgetown Friday, March 1 11 am – 1 pm
Southwest Friday, March 8 11 am – 1 pm
North  Friday, March 15 3 pm – 5 pm
Bee Cave Tuesday, March 19 12 pm – 2 pm
Trails Friday, March 29 11 am – 1 pm