Adjustable Rate Mortgage
Help your members achieve
their home financing goals!
Competitive ARM products are in high demand. In this rising rate environment, flexibility is key! The Flex ARM offers a low interest rate for a fixed period time, resulting in a more affordable payment for your member.
Key Program Benefits
7/1 ARM
- Fixed rate for the first 7 years
- Rate is 1.25% below 30 Year Rate
- 30 Year Repayment Term
10/1 ARM
- Fixed rate for the first 10 years
- Rate is 1.00% below 30 Year Rate
- 30 Year Repayment Term
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Key Program Requirements
- Loan to be Retained in Portfolio by Credit Union
- 30 Day Average SOFR Index
- 3% Margin, 5% Lifetime Rate Cap
- Qualifying Rate is 2% Above Initial Note Rate
- Financing for 1 Unit Primary Residences
- 680 Minimum Credit Score
- 43% Maximum DTI
Flex Adjustable Rate Mortgage (ARM)
| Product Eligibility Matrix | . |
|---|---|
| Portfolio Status | Retained Non-Saleable (Due to the adjustment period of 1 year) |
| Loan Purpose | Purchase or Refinance |
| Occupancy | Primary Residence |
| Property Eligibility | Single Family, Condominiums, Double-Wide Manufactured Homes |
| Loan Term | 30 Years Only |
| Loan Amount | Loan Amount Up to conforming loan limit singlefamily.fanniemae.com |
| Loan to Value Ratio's | Up to 95% LTV - Purchase and Rate & Term Refinance Up to 75% LTV - Cash Out Refinance *Exceptions may be made by the credit union |
| Credit Score | Minimum 680 *Exceptions may be made by the credit union |
| Pricing | 7/1 ARM - 1.25% Lower than the 30 Year Fixed Rate 10/1 ARM - 1.00% Lower than 30 Year Fixed Rate |
| Qualifying Rate | 2% Above Initial Note Rate |
| Qualifying Ratio's | Maximum DTI - 43% *Exceptions may be made by the credit union |
| Escrow | LTV > 80% mandatory escrow account for taxes and insurance |
| Index | 30 Day Average SOFR www.newyorkfed.org |
| Margin | 3% |
| Lifetime Cap | 5% Above Initial Note Rate |
| Floor | 3% |
| First Adjustment Cap | 5% Above Initial Note Rate |
| Subsequent Adjustment Cap | 1% Above Initial Note Rate |
| PMI | Required when LTV is greater than 80% *Exceptions may be made by the credit union |
| Automatic Payments | Fully executed ACH authorization required prior to closing |
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Leaving the Community Resource FCU Website
You will be linking to another website not owned or operated by Community Resource FCU. Community Resource FCU is not responsible for the availability or content of this website and does not represent either the linked website or you, should you enter into a transaction. The inclusion of any hyperlink does not imply any endorsement, investigation, verification or monitoring by Community Resource FCU of any information in any hyperlinked site. We encourage you to review their privacy and security policies which may differ from Community Resource FCU. If you “Proceed”, the link will open in a new window.