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Is a Mortgage from a Credit Union Right for You?

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This is an excerpt from our eBook, Why Get a Mortgage Through a Credit Union. Get the full eBook for FREE. Download here.

To help make this determination, here are a few things you should know about how credit unions work as well as an overview of the types of mortgages you can get through a credit union.

Credit unions are not-for-profit institutions
A credit union is a not-for-profit financial institution. For this reason, they tend to pay higher interest rates on savings accounts, charge lower fees and offer lower interest rates on loans compared with other financial institutions. Banks, by contrast, are for-profit institutions that are often publicly traded companies with shareholders. Credit unions have a different kind of shareholder—their members. Credit unions have two central goals: serve their members well, regardless of their earnings or wealth, and help the people of the community.

A mortgage to fit your needs
Credit unions may be smaller than most banks, but that doesn’t mean you won’t find a wide range of mortgage options at a credit union. At Mountain America Credit Union, you’ll find a variety of home loan options. One of these is bound to fit your needs.

  • 100% financing first-time home buyer mortgage  

  • Fixed-rate conventional mortgages with 15-, 20- and 30-year terms

  • Adjustable-rate conventional mortgages with 5-, 7- and 10-year terms

  • FHA loans

  • Construction loans

  • Lot loans

  • Jumbo loans

  • VA loans

  • USDA rural housing loans

  • Mini-mortgages with 5-, 7-, 10-, 12- and 15-year fixed-rate terms

  • Refinance loans

Key differences between credit unions and other financial institutions
Credit unions, like all mortgage lenders, must consider factors such as your income, employment, debts and credit score when deciding whether to give you a mortgage loan. Credit union and bank mortgages, on average, have similar mortgage interest rates. However, there are some important differences when it comes to mortgages.

One difference is that credit unions keep more of the mortgages they originate. While they do sell some loans to large investors like Fannie Mae and Freddie Mac, they don’t sell as many as other mortgage lenders do. That gives credit unions more flexibility in extending mortgages to creditworthy borrowers whose financial circumstances don’t fit neatly into conventional lending guidelines. If you’ve been turned down by a bank for a mortgage, a credit union might be able to help.

Another difference is that, despite having more flexible lending guidelines, credit union loans of all types have lower delinquency rates than bank loans of all types. That means you’re less likely to get a loan you can’t afford to repay from a credit union than from a bank. We issue our loans carefully and try to match our members with the best products for their needs.

How can you determine if a credit union is right for you?
Credit unions offer mortgages that meet almost every typical homebuyer’s financing needs, whether you’re buying an existing home, purchasing an ideally situated piece of land or building your dream home. Members also have access to unique mortgage products that banks sometimes don’t. For example, if you don’t have a down payment, you may find that other lenders won’t do business with you unless you qualify for a VA or USDA mortgage. Most credit unions, like Mountain America, offer 100% financing to qualified first-time homebuyers.

Understanding whether a mortgage from a credit union is right for you is just one of the topics covered in our latest eBook WHY GET A MORTAGE THROUGH A CREDIT UNION. This eBook will help you better understand:

  • The pros and cons of credit unions vs. other financial institutions

  • The benefits of being a credit union member

  • The various mortgage options offered by credit unions

  • How to determine if a credit union mortgage is right for you


Download my eBook

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