UFCU Mortgage Rates Reviews: Today's Best Analysis - Good Financial Cents® (2024)

UFCU was founded in 1949 and is now one of the largest credit unions in the U.S. It is a federally chartered credit union serving the employees, retirees, and immediate family members of more than 900 employers as well as residents of the six states where it has physical branches.

UFCU offers a wide range of banking and financial options to its members, and features fixed and adjustable-rate mortgages as well as construction and lot loans, VA, FHA, and rural development loans, among other options. The Better Business Bureau does not accredit its headquarters, but it has an A+ rating from the agency.

UFCU Mortgage Facts

• Initially founded in 1949, United Federal Credit Union was formed by the merger of smaller credit unions that eventually became UFCU

• Has a strong historical connection to Whirlpool and its subsidiary companies, but it now is also connected to more than 900 businesses by offering membership to their employees, retirees, and immediate family members

• Provides membership to residents of states where it has branch offices, including Arkansas, Indiana, Michigan, Nevada, North Carolina, Ohio, and Oklahoma

• Ranks among the top 100 largest credit unions in the country and has more than $2.6 billion in assets

• Offers a 30-day close guarantee, zero-cost closing options, and a discount rate when a mortgage is paid via a UFCU checking account

Overview

The credit union offers a wide range of mortgage options in all states except Alaska, Hawaii, and Texas. It does not appear on the Consumer Financial Protection Bureau’s list of mortgage providers with the highest number of originations. Although its headquarters location is not accredited by the Better Business Bureau, it has an A+ rating with the agency.

UFCU offers several resources to its customers, including publicly listed contact information for individual mortgage advisors, online calculators to help determine mortgage specifics and an online preapproval process. The union also features a 30-day close guarantee, zero-cost closing options, and a rate discount when mortgage payments are made from its checking accounts.

While limited to members, qualifications include current or past employment via more than 900 businesses. UFCU may be a strong choice for many borrowers because of its customer-centric approach and its many mortgage options.

Current UFCU Mortgage Rates

UFCU Loan Specifics

UFCU provides a variety of home loan options to its members. UFCU mortgage rates are generally competitive, and the credit union offers an additional 0.125 percent rate reduction when using a United checking account.

Learning more about the many home loan options provided by UFCU helps you make an informed decision and better understand the elements necessary to qualify for various mortgages.

Fixed-Rate Loans

A fixed-rate mortgage features a set interest rate that won’t change over the life of the loan, which can range from 10 years or less to 30 years or more. This means the loan is more predictable over its term, making monthly and long-term budgeting easier.

Fixed-rate home loans are especially useful for those who plan to remain in their home for an extended length of time and homeowners who don’t anticipate major increases in income in the future.

Adjustable-Rate Loans

An adjustable-rate home loan features an introductory rate that is set for a number of years at the beginning of the mortgage. After the introductory period expires, the loan adjusts on a regular basis. Yearly adjustments are common; however, other adjustment periods exist.

The introductory rate on an adjustable-rate mortgage can be quite attractive, and the potential for the rate to adjust downward based on both national economic factors and the bank’s decision-making is positive as well. However, the lack of certainty, which makes long-term budgeting difficult, coupled with the potential for increased rates, are concerns to keep in mind.

Jumbo Loans

Conforming mortgages are backed by the federal enterprises Fannie Mae and Freddie Mac. The Federal Housing Finance Agency sets the maximum loan limits on mortgages offered on these types of loans, with the 2024 baseline limit being set at $766,550. Limits are higher in areas with increased real estate demand and costs.

Home loans that exceed the baseline limit are known as non-conforming or jumbo loans and are necessary when purchasing high-end properties. Jumbo mortgages offer a way for homeowners to secure these types of properties, but the loans also carry more stringent requirements due to the lack of federal backing of the loans. Strong credit and the availability of assets to use as collateral are important considerations for homeowners considering this type of loan.

Federal Housing Administration (FHA) Loans

Backed by the Federal Housing Administration (FHA), an FHA loan can be a good choice for first-time homebuyers and those who want to make a home more energy-efficient. Benefits of an FHA home loan include a lower down payment, reduced closing costs, and more relaxed credit score qualification requirements. A credit score of 580 or more, which falls under the poor category in most traditional assessments, reduces the down payment requirement to only 3.5 percent.

Veterans Affairs (VA) Loans

The Department of Veterans Affairs offers a range of home loan benefits to active-duty and retired service members as well as qualifying surviving spouses. While the qualifying requirements are stricter than with an FHA loan, those who do meet the requirements can enjoy lower interest rates, reduced down payments, and other forms of assistance.

UFCU Home Loan Options Overview

UFCU Customer Experience

UFCU offers the traditional advantages of a credit union coupled with a long history in operation and a large member base. The credit union has a list of all its mortgage advisors with an associated online prequalification form. There is also an online application tracking tool and seven different calculators that allow prospective and current homeowners to calculate different mortgage options.

There are also live chat, phone, text, and email customer support options, as well as a mortgage-specific contact form that is passed along to a mortgage advisor.

The credit union is not listed in the J.D. Power Primary Mortgage Originator rankings, nor does it appear on the Consumer Financial Protection Bureau’s list of complaints against mortgage originators. With a 30-day closing guarantee, UFCU outperforms the national closing average of 41 days, calculated by Fannie Mae.

UFCU Lender Reputation

UFCU offers a variety of banking and financial products to customers across the country and has done so since 1949. Headquartered in St. Joseph, Michigan, its unique Nationwide Mortgage Licensing System ID number is 471962. UFCU is insured by the National Credit Union Association (NCUA) and is an equal housing lender.

While the headquarters location isn’t accredited by the BBB, it has an A+ rating from the organization and has closed three complaints in the last 12 months. However, customer reviews provide only 1/5 stars for the credit union. The three negative reviews relate to issues with proposed loan terms not matching the actual amount charged each month, among other problems.

To its credit, UFCU promptly replied to all three reviews to seek resolutions with their customers. There were no complaints filed with the CFPB against UFCU listed in the regulator’s database. Similarly, there were no enforcement actions listed by the NMLS.

UFCU Mortgage Qualifications

UFCU offers a wealth of online information about mortgage rates, but it does not publicly provide qualifying credit score data, debt-to-income ratios, and other specific information for the different types of loans it offers. Prospective borrowers can learn more by contacting directly with UFCU.

A general understanding of credit scores is valuable before you begin the process of searching for a home loan. Higher credit scores generally lead to more favorable rates and terms, while lower scores can lead to higher costs. This is due to the level of risk tied to different score categories.

UFCU Phone Number and Additional Details

Homepage URL: https://unitedfcu.com/

Company Phone: 888-982-1400

Headquarters Address: 2819 S. State St., Saint Joseph, MI, 49085

The Bottom Line – UFCU Mortgage Rates Reviews: Today’s Best Analysis

UFCU emerges as a substantial option for various mortgage needs, underscored by its extensive history, sizable asset base, and commitment to member service.

Its competitive mortgage rates, diverse loan offerings, and member-centric incentives, such as the rate reduction for checking account payments enhance its appeal.

While there are areas for improvement, particularly in transparent communication, as reflected in customer feedback, UFCU’s proactive response to such critiques highlights its dedication to member satisfaction.

Potential borrowers, especially those connected to its extensive network of affiliated employers, will find value in considering UFCU for their mortgage endeavors, although they should approach with a clear understanding of the credit implications of the borrowing terms.

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By obtaining data directly from lenders and carefully reviewing loan terms and conditions, we ensure a comprehensive assessment. Our research, combined with real-world feedback, shapes our evaluation process. Lenders are then rated on various factors, culminating in a star rating from one to five.

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