Credit Union Mortgage Loans: A Better Option for Future Homeowners

Credit Union Mortgage Loans: A Better Option for Future Homeowners

Skyrocketing fees and stricter requirements have caused consumers in the home-buying market to seek better alternatives when it comes to their mortgage lenders. Low down payment loans from the Federal Housing Administration (FHA) are not as attractive as they once were, so prospective homeowners who have less for a down payment are turning to credit unions for help.

FHA Loans are Not What They Used to Be

Many consumers have less to put on a down payment for a home thanks in part to the post-recession recovery. Borrowers who were lacking adequate funds for a down payment once relied on the FHA to provide them with low-rate financing. However, the appeal of these loans has dulled in recent years due to changes mandated by the Consumer Finance Protection Bureau (CFPB), putting the cost close to that of traditional home loans.

Special Loan Programs for Hometown Heroes

A variety of credit unions across the nation offer lower down payment financing for all members and some have taken extra initiatives to provide much-needed support for those who need it most. These credit unions have implemented new mortgage loan programs to help make the dream of home ownership a reality for “hometown heroes” which include:

  • Teachers
  • Law enforcement officers
  • Fire rescuers
  • Military personnel

These programs are available to qualified credit union members regardless of previous home ownership. Candidates must meet loan requirements, which can vary by credit union. Typical requirements include a good FICO credit score and a certain debt-to-income ratio.

Explore Your Cost-Effective Options with Us

These mortgage loan programs are very successful due to the fact that they are maintained in-house and their performances have fared well compared to those of other lenders’ prime loan portfolios. Stop by our credit union in the Rio Grande Valley today to find out more about the benefits of becoming a member.

Whether you are military personnel looking for a new home or are a law enforcement officer who is new to the home buying market, the friendly team at Valley Federal Credit Union can help you explore cost effective options for a new mortgage loan.