news.cuna.org/articles/105938-cus-help-fulfill-homeownership-dream-southland-cu-to-mirror

CUs help fulfill homeownership dream, Southland CU to Mirror

May 15, 2015

SANTA MONICA, Calif. (5/15/15)--A May 13 article in the Santa Monica Mirror highlighted the benefits consumers can reap in seeking a mortgage with a credit union.

“Home ownership is part of what many people consider realizing the American Dream,” the article began.  "Purchasing a home, especially if it is your first home, is an exciting experience that comes with challenges. Very few people are able to pay for their home outright and instead take out a home loan, or mortgage, from a financial institution. They may not realize that credit unions offer mortgages with many benefits.”

Matt Herrick, vice president of sales and marketing at Southland CU, Santa Monica, Calif., told the Mirror that credit unions are known for providing value to consumers. “Credit unions generally offer a full range of mortgage options to fit many different buyers,” Herrick said.

Herrick summarized some of the advantages of using a credit union for a mortgage:

  • Credit unions offer lower-cost private mortgage insurance compared with big banks for homebuyers who cannot provide at least a 20% down payment. Many credit unions require as little as 5% for a down payment;
     
  • Historically, credit unions have offered lower interest rates on mortgages. This is a result of their cooperative structure, which allows credit unions to return profits to their members in the form of more favorable rates;
     
  • Credit unions offer loans not only to consumers purchasing their primary residence, but also for buyers of a second home, investment property and multi-family properties;
     
  • Many credit unions partner with local real estate agencies to give a commission rebate after a home is purchased, which could save the buyer thousands of dollars; and
     
  • Credit unions have lenders who work with prospective buyers throughout the home-purchase process.