Mortgage Learning Center – Home Loans – Redwood Credit Union (2024)

FAQs

What credit score do credit unions require for a mortgage? ›

Conventional loans (620): Many conventional loans—mortgages that aren't part of government-backed programs—require a credit score of at least 620. Jumbo loans (680 to 720): Large conventional loans are also called jumbo loans and you may need a credit score of 680 to 720, depending on the lender.

FICO (credit) score – a credit report will be pulled during the application process which will help us identify your credit score, any current obligations or liabilities (debts), and any collections or judgments.

RCU mortgage loans are available on CA properties only. Certain restrictions may apply. Maximum Combined Loan to Value (CLTV) is 80% for manufactured homes and 75% for investment properties. RCU mortgage loans are available on CA properties only.

Credit unions may offer lower mortgage rates and fees, but often lack the in-person branches and digital services that banks do. Bigger banks might offer a wider variety of loan products and don't mandate that you become a member. It may be easier to get a mortgage with a credit union you already have joined.

What credit score is needed to buy a $300K house? The required credit score to buy a $300K house typically ranges from 580 to 720 or higher, depending on the type of loan. For an FHA loan, the minimum credit score is usually around 580.

For a $600,000 home, you'll likely need a very good to excellent credit score: 760+: Best rates and terms. 740-759: Slightly higher rates. 720-739: Higher rates, may require larger down payment.

Progressive Credit Union - You must be recommended by another member. This might be the most unique credit union requirement, and it also seems to be the toughest.

We're Member-owned

As Member-owned cooperative institutions, credit unions provide a safe place to save and borrow at reasonable rates.

Redwood Credit Union allows you to withdraw up to $800 per day from the ATM.

Redwood Credit Union's deposit accounts are federally insured by the NCUA for a minimum of $250,000. However, insurance can often be increased depending on the way an account is structured.

Does Redwood Credit Union have monthly fees? ›

A $3 monthly minimum balance fee is charged to any regular savings account with less than $75.

A loan's interest rate is the cost you pay to the lender for borrowing money. The Annual Percentage Rate (APR) is a measure of the interest rate plus the additional fees charged with the loan. Both are expressed as a percentage.

Because mortgage lenders make loans directly, they are able to offer more flexible eligibility requirements. Local banks often have fewer mortgage options and much more stringent lending guidelines than mortgage lenders.

While costs will always vary between institutions, when it comes to mortgage loan rates, credit unions often have much better rates. Credit unions are able to offer low mortgage rates, much lower than banks, because they borrow against themselves, being responsible to their own depositors vs.

Credit checks coming from lenders are reported to the credit reporting companies as an “inquiry.” An inquiry typically has a small negative effect on your credit scores. Inquiries can be seen by other lenders when they check your credit. Inquiries tell other lenders that you are thinking of taking on new debt.

Toggle Expand/Collapse. One of the most popular brands of credit scores is the FICO Score, created by the Fair Isaac Corporation. The FICO Score is used by most lenders, and typically ranges from 300 (very poor) to 850 (exceptional).

A credit union is an essential first stop when you're looking to borrow money, especially if you have a fair or bad credit score (689 or lower). Credit unions offer low rates and flexible terms and consider factors beyond credit score when evaluating your application.

You can get a mortgage with a credit score as low as 620, 580 or even 500, depending on the type of loan. Some mortgage lenders offer bad credit loans with more flexible qualifying requirements but higher costs. Others offer free credit counseling to help you improve your score before applying for a loan.