Nonprofit Model Means More Savings for Members
Unlike banks, Credit Unions are nonprofit. Because of this, Credit Unions put the money they make back into their institution to be able to best serve their home borrowers and members—one way they do this is by offering great mortgage rates.
Flexible Qualification Requirements – Part of the Credit Union philosophy is putting members first. Credit Unions will do anything within the realm of possibility to help their members access the mortgage market. For instance, when home borrowers apply for a mortgage loan at a Credit Union, the credit score and down payment requirements are typically lower than at big banks. Additionally, Credit Union members may be able to enjoy a higher debt-to-income ratio requirement, making it easier for them to be approved for a larger loan.
Customer Relationships are First – Mortgage loans are often sold by banks to different lenders to make more profits, but because the main goal of Credit Unions is to best serve its members, Credit Unions have partnered with MMS to service their loans for the life of the loan. Your mortgage won’t bounce from servicer to servicer. It will stay with MMS so you always know where to send monthly payments, which helps home borrowers avoid potential late fees or even escrow issues.