Residential Loan

Benefits & Features

  • Competitive interest rates
  • As low as 5% minimum down payment obligation
  • No private mortgage insurance (PMI) required
  • Friendly, knowledgeable loan officers
  • Online and automated telephone access to loan information

Residential Loan Rates

March 2017
Down PaymentLoan TermRateAPR Range
*APR is based on $150,000 mortgage at the initial rate listed, 360 monthly payments. Rate includes 0.5% origination fee.
**APR is based on a $150,000 mortgage at the interest rate listed, 180 monthly payments. Rate includes 0.5% origination fee.
LCEF current cost of funds1.875%
20% down payment30-year fixed rate; limited time offer for well-qualified buyers4.375%4.472% *
20% down payment15-year fixed rate; limited time offer for well-qualified buyers3.625%3.792% **
10% down payment5-year ARM rate3.25% - 3.75%3.341% - 3.844% *
10% down payment10-year ARM rate3.50% - 4.00%3.59% - 4.095% *
10% down payment15-year fixed rate3.75%-4.25%3.844% - 4.346% **
5% down payment5-year ARM rate3.50% - 4.00%3.59% - 4.095% *
5% down payment10-year ARM rate3.75% - 4.25%3.844% - 4.346% *
5% down payment15-year fixed rate4.00%-4.50%4.169% - 4.672% **

See all loan rates.

RCW mortgage loan rates are subject to change daily.

All interest rates on ARM loans are based on the LCEF current cost of funds. To learn how LCEF calculates cost of funds, download our helpful guide (PDF).

The 5-Year Adjustable Rate Mortgage (ARM) and 10-Year ARM loan products are variable rate loans and the interest rate may increase after consummation of the loan. The interest rate will never increase or decrease more than 3.5% from the initial rate during the term of the loan. In addition, each change frequency (occurring each year or every five years) will not allow more than a 2.5% increase or decrease from the previous rate.

APR = Annual Percentage Rate. The Annual Percentage Rate is a uniform measurement of the cost of a loan, including interest and financed costs of closing, expressed as a yearly percentage rate.

 

Well-Qualified Buyer Loan

For a limited time, LCEF is offering a RCW Well-Qualified Buyer Loan program available for the purchase of a home. Applicants must be active or emeritus status RCWs, meet specific underwriting guidelines and have a minimum 20% down payment using non-borrowed funds. RCW mortgage loan rates are subject to change daily.

Benefits & Features

  • Up to a 30-year fixed rate mortgage, so the principal and interest portion of your monthly payments remain the same for the loan term
  • Available for the purchase of a primary, single-family residence
  • Competitive interest rates
  • Friendly, knowledgeable loan officers
  • Online and automated telephone access to loan information

Qualifications

  • 20% minimum down payment required
  • No borrowed funds permitted, including “equity sharing” agreements with your ministry organization
  • Minimum average credit score: 740
  • Debt-to-income ratio maximums:
    • Housing Expense Ratio cannot exceed 28%—the percentage of total household gross (pre-tax) income that goes toward housing costs (principal, interest, taxes, insurance and any association fees). For example, if your household gross monthly income is $5,000, your total monthly mortgage payment cannot exceed $1,400 ($5,000 x 0.28 = $1,400).
    • Gross Debt-to-Income Ratio cannot exceed 40%—the percentage of total household gross (pre-tax) income that goes toward paying all recurring debt, including your housing payment as described above, PLUS other debts such as personal loans, credit card payments, car loans, student loans, etc. For example, if your gross monthly income is $5,000, your housing payment and recurring debt monthly payment totals cannot exceed $2,000 ($5,000 x 0.40 = $2,000)
 

Availability by State

Residential Loan applications are accepted from:

  • Arizona*
  • California
  • Colorado
  • Florida
  • Illinois
  • Indiana
  • Iowa*
  • Kansas
  • Michigan
  • Minnesota
  • Missouri
  • Nebraska
  • Ohio
  • Texas**
  • Washington
  • Wisconsin*

* Specific state regulations are applicable in Arizona, Iowa, and Wisconsin. Call 800-843-5233 for details.

** All cash-out refinances and straight refinances in excess of 80% loan-to-value are not available in Texas.

 

Frequently Asked Questions

  • Is there a limit on how much the interest rate can be adjusted on an ARM?

    Yes. The interest rate will not increase or decrease more than 3.5% during the term of the loan. In addition, each change frequency (occurring each year or every five years) will not allow more than a 2.5% increase or decrease from the previous rate.

  • What are down payment requirements for residential loans?

    LCEF requires at least a 5% down payment in addition to enough funds to cover closing costs. We also do not require private mortgage insurance (PMI), which is required by most lenders if a 20% down payment is not obtained. A 20% down payment using non-borrowed funds is required for the fixed rate Rostered Church Workers Well-Qualified Buyer loan program.