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Credit Unions That Do Not Require PMI

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Established Contributor

Credit Unions That Do Not Require PMI

I learned this week that Navy Federal Credit Union does not typically require PMI on mortgages. Unfortunately, I probably can't find a way to become a member due to their restrictive membership rules.

 

I was wondering if there were other credit unions that that do not typically require PMI for first mortgages that have a LTV greater than 80%, and that offer rates nearly identical to the prevailing rates with PMI.

 

Thanks.

Message 1 of 6
5 REPLIES 5
New Contributor

Re: Credit Unions That Do Not Require PMI


@stan_the_man wrote:

I learned this week that Navy Federal Credit Union does not typically require PMI on mortgages. Unfortunately, I probably can't find a way to become a member due to their restrictive membership rules.

 

I was wondering if there were other credit unions that that do not typically require PMI for first mortgages that have a LTV greater than 80%, and that offer rates nearly identical to the prevailing rates with PMI.

 

Thanks.


I recently joined Navy Federal CU since I now work for a US Government Contractor. I can tell you that they are slow as molasses even responding to mortgage applications. I applied for a pre-approval over a week ago, and haven't heard 'boo' from them yet on it. Whereas I got a pre-approval from Wells Fargo in one day after applying last month.

 

If you are looking for a no PMI loan and don't mind playing THE FORECLOSURE GAME, Fannie Mae offers 3% down and no PMI with their Homepath Program.You just have to purchase one of their properties listed on the Homepath website, and use one of their Homepath Lenders. It's a good deal if you can find the home you want....

 

 

 

Message 2 of 6
New Contributor

Re: Credit Unions That Do Not Require PMI

It depends on your credit score, but if you are a high FICO borrower, that Navy CU program isn't that great. 

 

If you add up the rate, origination, and discount points from their site, they are really expensive.   For high FICO borrowers, a conventional mortgage at a market rate with a single premium MI payment (meaning no monthly) would be at least a point cheaper. 

 

**One caveat:  it depends on the lender--PMI programs & rates are not the same between lenders.  Those with really good performance in the past (read: the ones who were doing boring loans in 2006), are getting significantly better rates and more friendly qualification criteria.

Message 3 of 6
Frequent Contributor

Re: Credit Unions That Do Not Require PMI


@crichter wrote:

It depends on your credit score, but if you are a high FICO borrower, that Navy CU program isn't that great. 

 

If you add up the rate, origination, and discount points from their site, they are really expensive.   For high FICO borrowers, a conventional mortgage at a market rate with a single premium MI payment (meaning no monthly) would be at least a point cheaper. 

 

**One caveat:  it depends on the lender--PMI programs & rates are not the same between lenders.  Those with really good performance in the past (read: the ones who were doing boring loans in 2006), are getting significantly better rates and more friendly qualification criteria.


and where can we find such useful information?

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Message 4 of 6
Regular Contributor

Re: Credit Unions That Do Not Require PMI

I got a conventional loan with NFCU last March with 10% down and no PMI. I closed my loan in 21 days and paid a 1% origination fee for a  4.75% 30 year fixed. My middle score was 738 at the time.

EX. 780 TU 794.
Message 5 of 6
Established Contributor

Re: Credit Unions That Do Not Require PMI

@crichter --

 

Who are the boring lenders that I need to research/contact?

 

Thanks

Message 6 of 6
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