HLPR Loan Options
Participating credit unions offer one or more of the following mortgage products to their qualifying members:
The original HLPR loan is a three-year adjustable rate mortgage tied to the nationwide average of the three-year adjustable rate mortgages with a rate discount of 1%. Loans to be 3/1 ARMs. Rate fixed for three years, then adjusted annually to the 1-Year Treasury with a 2.75% margin. Annual adjustments capped at 1%. Lifetime cap of 5%.
Fixed-rate option Credit unions may now offer their qualifying members a 30-year fixed-rate HLPR loan that features a 3-year 1% buydown. Credit unions may use either their own standard 30-year mortgage rate, or a national 30-year rate that CUNA will publish weekly similar to the national average 3/1 ARM rate.
5/1 and 7/1 ARMS Credit unions may offer longer term ARMs with a 0.50% buydown based off their standard 5/1 and 7/1 ARMS.
40-year term loan Credit unions may offer HLPR loans with a 40-year amortization.
New Program Recommendations:
- Underwrite loans and require documentation to meet MyCommnity (Fannie Mae) or HomePossible (Freddie Mac) standards.
- Offer financial counseling to HLPR borrowers