Red Rocks FCU Pledges $5 Million to Unique First-Time Homebuyer Program

HIGHLANDS RANCH, Colo. – Red Rocks FCU has committed $5 million for a new first-time homebuyer program that will allow members to buy a new home with as little as $500 down and finance their mortgage, up to $359,600, with a 40-year term. The new mortgage loans from the $115 million credit union will offer an introductory locked rate of 3.95% APR for the first 12 months. For any mortgage with a loan-to-value greater than 80%, Red Rock will provide Involuntary Unemployment Insurance and Temporary Disability Insurance at no additional cost during the first two years of the loan. Steve VanSickler, VP/chief lending officer of Red Rocks said the credit union estimates the new mortgage product will be able to save members over $10,000 in principal and interest payments on a $250,000 loan during the first 60 months of the loan term. The new mortgage product, like all of Red Rocks’ mortgage loans, features no origination fee or unnecessary fees and are offered at market rates. To qualify to apply for the new mortgage loan product, members must be a first-time homebuyer or have not owned a home in the last three years, take part in Red Rocks’ Homebuyer Class, have an active Red Rocks savings and checking account, and have their mortgage payment paid automatically on a monthly basis from their checking account with the credit union. Red Rocks FCU has more than 18,500 members.