State Employees’ Credit Union mortgage review

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Our verdict

This lender has no application or credit report fees, but availability is limited to a handful of states.

Compared to most other lenders, SECU is refreshingly transparent, especially about the interest rates it offers and the fees it charges. And while the credit union doesn't offer government-backed loans, its assistance programs and specialty mortgages provide similar terms and requirements, even financing up to 100% of your home's purchase price.

But most of its loan products are only available in SECU's five-state footprint, and the few customers that have reviewed the lender complain of dated equipment and services and report poor customer service experiences. When we called to speak to a loan officer on behalf of Finder, it was difficult to keep someone on the line and we were hung up on twice.

Pros

Cons

• Our verdict
• Details
  • Features

  State Employees’ Credit Union (SECU) offers conventional fixed- or adjustable-rate mortgage products. It also has a program to help first-time homebuyers get up to 100% financing and closing cost assistance. But it’s not ideal if you’re looking for government-insured loans with flexible credit underwriting — and it’s only available in five states.

  Details

  Features

  Loan products offered	Conventional, Refinance, HELOC
  Minimum credit score	620
  Minimum down payment (Conventional)	0%
  State availability	Only available in: GA, NC, SC, TN, VA
  NMLS #	430055

  State Employees’ Credit Union is not currently available on Finder

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  State Employees’ Credit Union Requirements

  Conventional loans have a maximum 100% loan-to-value (LTV). SECU currently prefers a maximum debt-to-income (DTI) ratio of 43%.
  SECU doesn’t set interest rates based on your FICO score, but your credit history may impact your ability to qualify for a loan.

  Documentation

  To get your mortgage loan approved, SECU looks at four factors:

  1. Your ability to pay
  2. Your credit history
  3. Available collateral
  4. Purpose of the loan

  You’ll need to submit the following documents with your loan application:

  • Current and former addresses
  • Social Security number
  • Employment history
  • Proof of income
  • Documents that show receipt or obligation of alimony or child support
  • Monthly obligations and debts, such as car loans and credit card bills

  Costs and fees

  SECU lays out most of its rates and fees online. However, borrowers are also responsible for third-party fees. Third-party fees for a HELOC loan, for example, range from $0 to $1,600.
  Some costs to prepare for include:

  • Origination fee of 1% of the loan amount up to $2,500 for all mortgage loans
  • No application or credit report fees
  • Third-party fees, such as appraisal fees and title report fees

  How to apply for a mortgage with State Employees’ Credit Union

  You can request a loan at a local branch, online or by phone using SECU’s 24/7 Member Services. If you’re not already a member, you’ll need to apply for membership before you can get a home loan.
  To apply for a home loan online:

  1. Go to SECU’s homepage and choose Loan products.
  2. Under Mortgages, choose the home loan you’re applying for.
  3. On the right-hand side under Request a loan, select Request online.
  4. Choose Enroll now to make an account.
  5. Enter your account information, read and accept the terms, then choose Continue.
  6. Select whether you want to Pre-qualify or Apply.
  7. Choose the home loan type and click Submit.
  8. Continue following the prompts to complete the online form. Click Submit.
  9. Check your message center for future confirmations and communications from SECU.

  What types of mortgages can I get through State Employees’ Credit Union?

  • Conventional
  • FHA
  • VA
  • USDA
  • Jumbo

  Other mortgage products offered by State Employees’ Credit Union

  SECU also offers the following special mortgage programs:

  • Refinance. You can refinance your home under its fixed- or adjustable-rate mortgage programs.
  • HELOC. SECU offers home equity lines of credit up to 90% of the value of your home, excluding what you owe on your first mortgage. There are no origination fees for HELOCs, and APRs start at 4.25%.
  • First Time Homebuyer’s Mortgage. Qualified first-time homebuyers can finance up to 100% of the purchase price under a five-year ARM. Private mortgage insurance isn’t required.
  • Construction-Permanent Mortgage. Build a new home or renovate an existing home under SECU’s 5-year ARM program or through its 15- and 20-year fixed-rate home loan programs. You’ll pay one set of closing costs.
  • Manufactured Home Loans. SECU will finance single and double-wide manufactured homes. These manufactured home loans have a maximum term of 15 years and are eligible as a five-year ARM, fixed-rate mortgage, or through SECU’s First Time Homebuyer’s Mortgage program.
  • Historic Preservation Homes. Historic homes under the jurisdiction of the NC Historic Preservation Society or a local Historic Preservation Board can finance up to 70% of the purchase price.

  How State Employees’ Credit Union’s mortgage products compare to other lenders

  While SECU doesn’t offer government-backed mortgages, like FHA and VA, the credit union has quite a few specialty loans that might help fill that gap, such as the First Time Homebuyer’s Mortgage that allows borrowers to finance 100% of their home purchase. The lender also offers special construction loans and finances manufactured homes — something many lenders won’t even consider.
  SECU also offers the following borrower assistance programs:

  • SECU Mortgage Assistance Program. SECU members who find themselves struggling to make their mortgage payments can sit down with a loan officer through the SECU Mortgage Assistance Program and develop an individualized financial plan. Options include temporarily modifying the payment amount, temporarily deferring payment or modifying the loan terms.
  • Mortgage Credit Certificates. Mortgage Credit Certificates (MCC) are federal income tax credits for 30% of the mortgage interest payments for a maximum benefit of $2,000 per year. MCCs are issued through the NC Housing Finance Agency for a member’s first home. You can apply for an MCC with your loan application for a nonrefundable fee of $475.
  • FHLBA Grant Program. The Federal Home Loan Bank of Atlanta offers a special grant to first-time homebuyers. As long as the borrower contributes at least $1,000 toward closing costs, FHLBA matches it four times up to $5,000, and the borrower doesn’t have to pay it back as long as they stay in the home for five years.

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