No Money Down Mortgage Program
Realizing the Pathway to Home Ownership

Realizing the Pathway to Home Ownership
The No Money Down Mortgage Program is a initiative that enables creditworthy prospective homebuyers with stable employment and sufficient monthly income the ability to obtain 100% financing through assistance from other Blue members who are buying into high-yield share certificates that will be pledged as collateral in the place of a down payment.
In this way Blue is serving as our members irreplaceable co-pilot and tying directly into the
spirit of the credit union movement with members helping members.
At the Heart of it:
Blue wants to ensure that members of our communities can realize the ultimate American dream of homeownership. With rising home prices, people who otherwise could afford a home (mortgage payments, insurance, and taxes) sometimes have difficulty saving for a 20% down payment. Through this program, the down payment requirements are waived for the borrowers while also providing pledgers with an incredible interest rate on their pledged funds. It's a win-win for everyone!
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To remain impartial and fair, Blue has partnered with some great Real Estate Agents that are helping identify potential borrowers who would fit the criteria for this pilot program.
Once a potential home buyer has been identified, they are subject to Blue’s high underwriting standards to receive a mortgage with 100% financing. In fact, with this program, the underwriting standards are higher than usual to safeguard the funds of all parties involved; including pledgers, the homeowner and Blue.
For the pledger, the pilot program works very similar to a term share (also known as a CD at other financial institutions) account. A pledger will deposit their desired funds into a 5-year term share, the funds will then be pooled with other pledgers to provide additional collateral for the mortgage loans in this pilot program. Pledgers are rewarded for their community-good with an interest rate that adjusts monthly based on the Prime Rate minus 1.25%. In addition, pledgers can withdraw the interest earned throughout the five years.
Risk of Loss – While the money will remain Federally insured according to NCUA guidelines, pledgers are subject to a slightly increased risk in the unlikely event the mortgage is defaulted on. To reduce this risk even further, Blue has decided to cover 80% of any loss that occurs on the mortgage. The remaining 20% of the loss will be proportionality divided up among the pledgers.
Inability to Remove Funds Early – Because the money that is deposited will be pledged into a pool of mortgages, there will not be an option to remove the funds before the maturity of the full five-year term. However, pledgers may withdraw the interest earned throughout the five-year term.
No Money Down Mortgage Pamphlet
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