Best of
Best Credit Union Mortgage Lenders of 2019
NerdWalletJuly 2, 2019
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Credit union mortgages may come with advantages such as lower fees and interest rates. Here are some of the best credit unions for VA loans, home equity products, first-time home buyers and California residents.
Min. Credit Score
600
Min. Down Payment
3%
Ideal for first-time home buyers who want a low-down-payment mortgage without getting an FHA loan.
Pros
- Offers a range of fixed-rate and adjustable-rate mortgages in all states but Alaska and Hawaii.
- Customer support is available across a variety of channels despite limited physical locations.
- May consider alternative credit data.
Cons
- Does not offer FHA, VA or USDA loans.
- Just 13 branch locations in four states (Minnesota, New Hampshire, Ohio and Wisconsin).
National / Regional
National
Min. Down Payment
0%
Ideal for first-time home buyers who qualify for membership, don't have much saved for a down payment and want to avoid mortgage insurance.
Pros
- First-time home buyers may put zero down and pay no mortgage insurance.
- Repeat homeowners may put down as little as 5% with no mortgage insurance.
- Mortgages are available for non-warrantable condominiums.
Cons
- No government-insured loans, such as FHA, VA or USDA.
- Brick-and-mortar locations in five states, so most borrowers' applications must be handled online or by phone.
- As it's a credit union, membership is limited.
National / Regional
National
Min. Down Payment
0%
Ideal for military members and their families. Navy Federal Credit Union offers a wide range of mortgage products, an online application and considers alternative credit data for certain loan types.
Pros
- Wide range of affordable mortgage products designed for military members.
- Willing to look at nontraditional credit data, such as rent payments, as part of its credit evaluation for certain products.
- Lower minimum loan amounts than many other lenders.
- Online application for preapproval with quick decision.
- $1,000 mortgage rate match program.
- Operates nationwide.
Cons
- Charges application and underwriting fees.
- Origination charge on a typical conventional loan is 1% of the loan amount.
National / Regional
National
Max LTV
90%
Ideal for customers seeking more than plain-vanilla services. PenFed offers a traditional home equity loan as well as interest-only HELOCs and lines with rate adjustments every five years.
Pros
- A wide variety of home equity options, including an interest-only HELOC.
- A 5/5 HELOC allows you to lock in a low rate for five years.
- A PenFed home equity loan allows you to tap your home's value in a lump sum.
Cons
- Membership required, but it's easier to obtain these days than in years past.
- Online technology leaves a bit to be desired for tech-savvy borrowers.
- Branch offices are in limited locations, following a major military base footprint.
- Max LTV in Texas is 80%
Min. Credit Score
620
Min. Down Payment
3%
Ideal for California residents who want to work with a home-grown credit union that offers a variety of fixed- and adjustable-rate mortgages.
Pros
- Has a wide range of purchase and refinance loans, including FHA.
- Offers jumbo loans up to $2 million.
- Preferred Realtor program saves on commissions.
- Considers alternative credit data.
Cons
- Charges $850 origination fee.
- Does not offer VA or USDA loans.
Min. Down Payment
5%
National / Regional
Regional
San Diego County Credit Union is ideal for borrowers who want a conventional loan, and live or work in San Diego County.
Pros
- Online loan application and rate tracking.
- Customized rates available without personal info.
- Down payments as low as 5%.
- Offers partial rebates on real estate agent commissions.
Cons
- No FHA, VA or USDA home loans.
- Can't digitally sign loan documents.
- Online preapproval not available for all loan products.
Summary of Best Credit Union Mortgage Lenders of 2019
| Lender | Best For | Minimum Credit Score | Minimum Down Payment | Learn More |
|---|---|---|---|---|
 Connexus | first-time home buyers & home equity borrowing | 600 | 3% | Read review |
 Alliant | first-time home buyers | N/A | 0% | Read review |
 Navy Federal | VA home loans | N/A | 0% | Read review |
 PenFed | home equity borrowing | N/A | N/A | Read review |
 Golden 1 Credit Union | California borrowers | 620 | 3% | Read review |
 San Diego Country Credit Union | California borrowers | N/A | 5% | Read review |
| Lender | Best For | Minimum Credit Score | Minimum Down Payment | Learn More |
|---|---|---|---|---|
Connexus | first-time home buyers & home equity borrowing | 600 | 3% | Read review |
Alliant | first-time home buyers | N/A | 0% | Read review |
Navy Federal | VA home loans | N/A | 0% | Read review |
PenFed | home equity borrowing | N/A | N/A | Read review |
Golden 1 Credit Union | California borrowers | 620 | 3% | Read review |
San Diego Country Credit Union | California borrowers | N/A | 5% | Read review |
Last updated on July 2, 2019
Methodology
NerdWallet's selection of mortgage lenders for inclusion here was made based on our evaluation of the products and services that lenders offer to consumers who are actively shopping for the best mortgage. The six key areas we evaluated include the loan types and loan products offered, online capabilities, online mortgage rate information, customer service and the number of complaints filed with the Consumer Financial Protection Bureau as a percentage of loans issued. We also awarded lenders up to one bonus star for a unique program or borrower focus that set them apart from other lenders. To ensure consistency, our ratings are reviewed by multiple people on the NerdWallet Mortgages team.
To recap our selections...
NerdWallet's Best Credit Union Mortgage Lenders of 2019
- Connexus: Best for first-time home buyers & home equity borrowing
- Alliant: Best for first-time home buyers
- Navy Federal: Best for VA home loans
- PenFed: Best for home equity borrowing
- Golden 1 Credit Union: Best for California borrowers
- San Diego Country Credit Union: Best for California borrowers
