Credit unions are non-profit cooperatives owned by members, not stockholders. This structural difference creates a significant advantage for mortgage borrowers.
Lower Overhead and “Member First” Philosophy
Since they don’t have to generate profit for external shareholders, credit unions often pass the savings to members in the form of lower interest rates and reduced origination fees.
More Flexible Underwriting
Credit unions often take a more personal approach to lending. If your credit score is slightly below the institutional “cutoff” but you have a strong work history, a credit union loan officer is more likely to listen to your story than a massive, automated bank.
The Trade-off
The downside is limited technology. You may not get the flashy mobile app of a big-name bank, but the savings on your mortgage could be thousands of dollars over the life of the loan.