Is a credit union a good place to to get loans for investments?
Is it like a bank?
Yes, credit unions are kinda like banks. Normally, you may have to meet some sort of general criteria to belong.
I have found that their lending rules are a bit stricter but their rates a bit lower than the other banks in th area.
Keith
I’ve used a local one extensively for credit cards, personal loans, and auto loans. Their rates have been low but they are generally a nuisance to deal with and the turnaround time has sucked on some of my loans.
The local credit union where I live won’t do non-owner occupied loans.
Mike
Credit Unions are exempt from federal income tax and as such have lower overhead allowing them to offer competitive rates. Historically they have been small with very strict membership requirements. However, to be more competitive many have expanded their membership criteria and in some locals have grown in size and expanded their menu of products.
I have used credit unions alot. They are kinda slow sometimes…but in my experience, all banks are. They are usually the underdog compared to banks, therefore they are more hungry sometimes and will do certain deals that other banks won’t.
when dealing with small banks and credit unions, you need to find out if they are simply brokering loans that conform to some loan program (i.e. they can sell the loan) or are they doing the loan for their own portfolio. If its the former, your probably not much better off than going to a regular loan brokers. If its the latter (i.e. a true portfolio loan they intend to service), it can great and easy. The portfolio loan I did a couple of months ago with a small local bank was the easiest one I’ve ever done.
Look online for some of them. One of my first loans I got through Lockheed Federal Credit Union. I believe their rates are posted online and they also do non owner occupied as a 12 year balloon based on a 30 year. Pretty good rates except for the fact that they charge 1.5-2 points to do the loan depending if you do 75 or 80% LTV. I think it’s like $5 to join a non profit and then you can get the loan from them.