Blue wants to be the lifelong champion of our members by creating community connections and transforming the financial services experience. Ultimately, our desire is to help our members and communities discover pathways to realize their possibilities.

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!

The Borrower

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.

The Pledger

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.

While this program is like a regular term share, there are some very important differences:

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

Interested in participating in the No Money Down Mortgage Program?

Submit your information below and we'll reach out to discuss your options.

*Annual Percentage Yield
Qualifying credit score is determined by pulling all 3 credit bureaus for borrower and using the middle score. If more than one applicant is on loan, the borrower with the lower middle score is used to determine qualification and rate. Borrowers will need funds for Earnest Money (deposit). Borrowers will still need to pay closing costs out of pocket on day of closing. This amount will be determined by purchase price, taxes, insurance, and appraisal costs. Earnest Money deposit will be credited towards these costs. Bonus and overtime can only be used if borrower can show 2-year history. Second job income can only be used if borrower can show 2-year history from the second job. Offer not valid for employees or volunteers of Blue Federal Credit Union. Loan amount may not exceed the conforming loan limit.

For You. For Life.