Ever since the property market crash, the mortgage lenders have become very skeptical in offering you mortgage loans. This is quite obvious as the unrestricted subprime mortgages issued by the mortgage lenders were responsible for the unprecedented collapse in the housing market.
While the mortgage lenders have become cynical in offering loans but the credit unions in the country have raised lending to a large extent. Data provided by the CreditUnions.com, reveals that from January to September of 2012, mortgage lending by the credit unions increased by from that of January to September of 2011.
Usually rates and fees on the mortgage loans offered by the credit unions are less than the rates and fees charged by other lenders for comparable loans. Members of the credit unions who are responsible for loan offers are involved in not-for-profit business. Anything that is earned from this business is again transmitted to lower the rate of interest.
Mortgage offers by the credit unions
Like ordinary mortgage lenders, credit unions also offer all types of mortgage programs. Common mortgage offers made by the credit unions include:
• Various types of adjustable rate mortgages
• 10, 15, 20 and 30 years fixed rate mortgages
• Federal Housing Administration (FHA) loans
• Veterans Affairs (VA) loans
In addition to this, credit unions offer their own loan programs to the homeowners. This include
Homebuyer’s Choice mortgages
This requires you to make no down payment at all. Here, you won’t have to make any private mortgage insurance also. Refinance loan up to 97% of the appraised value of the home is also offered.
Harmony loans
Harmony loans are only offered to those borrowers who are members of credit unions. One attractive feature of this program is that here you get the chance to reset the mortgage rate in every 4 months. However, you get this chance only if the mortgage shows a declining tendency. In case you find difficulty in making payments, you don’t have to immediately think of refinancing. But here you get the chance to check the rate online and can even lower it down just by a click of the mouse. Again, you don’t have to cross the hurdles of loan approval and appraisal process. No closing costs are there also.
How to become member of a credit union
In the past, membership to credit unions was very limited. Only the people of certain areas and the employees of some specific industries were eligible for membership. Here, it is to be noted that some credit unions are very conservative in terms of membership while some others are comparatively open. With a small amount of donation, you can get membership of some credit unions.
Though online search, you can find out a credit union to join. In most of the cases, fees charged for membership are reasonable. But, just like the other lenders, loan programs offered by different credit unions vary a lot. Before, selecting your program, you need to do adequate research here also.