topic Using a Credit Union with In-House Products in Mortgage Loans

Using a Credit Union with In-House Products

oorhett — Thu, 04 Feb 2021 04:32:23 GMT

Been calling a few local "smaller" Credit Unions here in Utah to see what loans they have that I may qualify for. So far found a couple that may work out, thought I would start a thread to document my experience.

Looking to get a Heloc for $300,000 against a home value of $550,000 with no existing Mortgage. (House needs major renovations, so hoping for no onsite appraisal)

My CH 7 BK discharged Sep 2019

Lots of new credit cards (6) and some older student loans on my credit.

So far have found two Heloc's that need a score of 660 or better with rates at about 4.25-4.5% 15/20yr amortization. With fees of around $650 plus appraisal if it's needed, and are ok with my BK.

Planning on submitting an application tomorrow after calling a few others. I Will update here with my progress

Re: Using a Credit Union with In-House Products

oorhett — Sat, 06 Feb 2021 17:41:23 GMT

Progress Update:

1st Lender - America United Federal Credit Union

Countered with an offer of $185,0000 4.25%
Based on a middle score of 663 TU
The counter was based on DTI (They are including my property tax payments in the DTI calculation!)

2nd Lender - GoldenWest Credit Union

Requested a co-signer
Reasons were BK, Length of established Credit history, to many Inquires (This was pulled after #1 but the same day)
They only Pulled Experian with a 670 score

3rd Lender - Utah First Credit Union

Pulled Experian 670 score (Pulled after #2 same day)
Still waiting on a decision, but the loan officer is confident based on my Credit Report

4th Lender - Freedom Credit Union

Have not appd yet

5th Lender - CC Bank

Have not appd yet

Re: Using a Credit Union with In-House Products

oorhett — Tue, 09 Feb 2021 05:52:48 GMT

3rd Lender - Utah First Credit Union

Pulled Experian 670 score (Pulled after #2 same day)
Asked for $300,000
- Countered with $185,000 6.25% with 1.99% 12 mo intro rate
- because the Loan will be in 1st position they want to include an escrow account in my DTI Calculation ($459) and also decided to limit my max loan amount based on an income multiplier
- Want me to pay upfront for a full appraisal ($400-$600)
- I am going to pass on this one as Lender #1 is a much better rate and it's a Drive-by appraisal but I am still looking.

I found two more lenders that have favorable options for me. Also, it seems that $250,000 is turning out to be the magic number for not needing a full appraisal for a Heloc which I am trying to avoid.

One is a smaller Bank "First Community Bank" who is associated with Glacier Bank out of Montana and has branches in Utah and another Local CU that has a 30yr Fixed that claims to be OK with my Chap 7 BK being under two years old.

Re: Using a Credit Union with In-House Products

oorhett — Wed, 10 Feb 2021 03:58:49 GMT

4th Lender - Freedom Credit Union

Received a response from this lender claiming that my Experian score came in at 621 and they need it to be 640 or better
- Not sure what method they are using for scoring because everyone else has told me 670 for Experian

5th Lender CC Bank

Still have not applied here

6th Lender Granite Credit Union

Applied for a regular Cash-out Refinance 30yr Mortgage
- They pulled 3 Bureau report which matched Lender #1 used my middle score 663 TU
Asked for $300,000
- Offered $245,000 Based on my DTI (Adding Escrow account)
- 7/1 arm @ 3.125%
- $5100 Closing cost
- Still waiting to see if they ask for a full appraisal or not

7th Lender First Community Bank (Affiliated w/ Glacier Bank)

Filled out my Application but they are yet to pull my credit they use only TU
BK as long as above a 630 score they are ok
Suggested that they will use an Interest-only payment amount for DTI 43%
$250,000 or less does not require full Appraisal
Rates are 4.75% Qtr, or 5.1-6%3yr fixed or 6+% 5yr
Costs = lender paid $300-$600

Re: Using a Credit Union with In-House Products

oorhett — Sun, 14 Feb 2021 00:12:34 GMT

Have Narrowed it down to three Lenders:

1st Lender America United CU - HELOC Asked for $300,000

Offered Loan Amount (DTI limited) - $185,000 Pymt = $1145 P/I
Int Rate - 3.25% Adj
Closing Costs $0 if I keep the account open for 36 mo
Appraisal - BPO
Credit - Pulled Tri Mortgage EQ - 658, EX - 670, TU - 663 (Using Middle Score 663)

6th Lender Granit CU - 30 yr 7/1 Arm Asked for $300,000

Offered Loan Amount (DTI Limited) - $245,000 Pymt = $1049 P/I
Int Rate - 3.125% Adj
Closing Costs $5100
Appraisal - Waiting to see type requested hoping for AVM
Credit - Pulled Tri Mortgage EQ - 658, EX - 670, TU - 663 (Using Middle Score 663)

7th Lender First Community Bank/Glacier Bank HELOC asked for $250,000 to avoid full Appraisal

Offered Loan Amount - $250,000 Pymt = $1062 I/O
Int Rate - 5.125% 3yr Fixed
Closing Costs $600
Appraisal - AVM
Pulled TU, Score - 663

Re: Using a Credit Union with In-House Products

Anonymous — Tue, 16 Feb 2021 19:28:49 GMT

Why in the world do you want an adjustable rate when interest is at the lowest it's been, ever in recorded history? Just get a home equity loan rather than a HELOC.

If you don't pay off $200k+ by the first adjustment period I can all but guarantee you it will adjust HEAVILY upwards and your payment will go into the stratosphere.

Re: Using a Credit Union with In-House Products

oorhett — Wed, 17 Feb 2021 05:30:15 GMT

@Anonymous wrote:
Why in the world do you want an adjustable rate when interest is at the lowest it's been, ever in recorded history? Just get a home equity loan rather than a HELOC.

If you don't pay off $200k+ by the first adjustment period I can all but guarantee you it will adjust HEAVILY upwards and your payment will go into the stratosphere.

Thanks for your reply and suggestion! I am limited to what options I have due to my Chapter 7 BK discharge only 18 months ago, and need to avoid a full appraisal on the home due to the current condition that it is in. Another factor is that I will most likely only use $75,000 of the whole amount, yet there is a possibility we will end up using the other $225,000 for a potential home purchase in December. So making payments on the full $250,000 from the outset seems like the wrong thing to do here. If you are aware of any Home Equity Loans that would serve me better I would appreciate the info.

Re: Using a Credit Union with In-House Products

oorhett — Tue, 02 Mar 2021 05:19:41 GMT

Update on my progress:

1st Lender America United CU - They called today to let me know I am Approved and Cleared to Close

- (Keeping this option open in case #7 fails for some reason)

- AVM/BPO Appraisal

- This was a pretty painless process not a ton of communication, however no issues to resolve: title, credit, or otherwise "Really wish they would have been able to give me the full $250K that I needed"

6th Lender - Granite Credit Union - Still in underwriting with a few conditions still that are needed

- Copy of my two most recent NFCU Credit Card statements, sign an IRS form and from there they will let me know additional conditions

- AVM/BPO Appraisal

- Loan officer called me with title issues so referred him to another Title Co that seems to have cleared up those concerns

7th Lender - First Community Bank / Glacier Bank - (Plan to close on this Loan this week, thought I was closing Feb 26th "Title issue")

- According to the Loan officer we are now Clear to Close but he hasn't called me to schedule, he suggested Mar 4/5th.

- AVM/BPO Appraisal - The loan officer had to drive by and take a couple of exterior photos I didn't even know they were there.

- Had an issue with Title thinking a pre-BK Judgment was a Lien on my Post BK Property, took me calling directly to get them sorted out.

I Will update again, hopefully closing this week!

Re: Using a Credit Union with In-House Products

kaylord84 — Sat, 13 Mar 2021 03:11:53 GMT

Any update ???

Re: Using a Credit Union with In-House Products

oorhett — Tue, 16 Mar 2021 04:12:31 GMT

@kaylord84 wrote:
Any update ???

Yes, it got delayed due to the title issues, scheduled to close this Friday!

Re: Using a Credit Union with In-House Products

oorhett — Sat, 20 Mar 2021 01:02:14 GMT

Closed with "First Community Bank" today $250,000 Title fees were a bit more than I had expected $847 lenders policy on $250,000. Total closing costs ended up being $1015. To be determined how easy the account will be to pull from. Doesn't connect to the checking account like an overdraft, and doesn't offer checks to pull directly from the loan account, have to transfer to my checking account with them and write checks from that account. We will see how it ends up reporting to the credit bureaus. It is a 15-year draw with a balloon payment at the end of the 15 years, interest-only payments @ 5.15% fixed for 3 years. First Community Bank is a division of Glacier Bank of Montana fyi.

Re: Using a Credit Union with In-House Products

Anonymous — Wed, 07 Apr 2021 06:30:57 GMT

Would you mind DM I get me the contact for first community bank? I am in the exact same position trying to get a heloc on a property that will not pass full appraisal. I would really appreciate it.