State Employees’ Credit Union Mortgage Review 2024
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Our Take
5.0
Despite its small, five-state footprint, State Employees’ Credit Union in North Carolina offers big value — if you meet its narrow criteria to become a member. SECU has some of the lowest average mortgage rates of lenders we review, as well as generous grants and specialty loans for first time home buyers. Most likely to appeal to Southeasterners eligible for first-time home buyer assistance programs.
Pros
- Offers a no-down-payment mortgage without private mortgage insurance.
- Participates in multiple first-time buyer assistance programs.
- Very low average mortgage rates, according to the latest federal data.
Cons
- Credit union membership eligibility is limited.
- Loans only available in five states.
- Doesn’t offer government-backed mortgages.
Lender | Min. credit score | Min. down payment | |
|---|---|---|---|
580 | 3% | Visit Lenderat New American Funding at New American Funding | |
620 | 3% | Visit Lenderat NBKC at NBKC | |
580 | 3.5% | Visit Lenderat Rocket Mortgage, LLC at Rocket Mortgage, LLC |
Full Review
SECU is a credit union based in Raleigh, North Carolina. It is the largest mortgage lender by loan volume in North Carolina as of 2023, according to the latest federal data available. Loans are available in North Carolina, South Carolina, Virginia, Georgia and Tennessee.
🏠 Popular loan types include: fixed or adjustable rate; conventional; jumbo; rate and term or cash-out refinance
🔑 Specialty loan options include: renovation mortgages; loans for vacation/second homes; loans for self-employed borrowers; ITIN loans; conventional loans for manufactured homes; historic preservation home loans
💵 Home equity borrowing options: HELOC
SECU’s First Time Homebuyer’s Mortgage, a five-year adjustable rate mortgage, offers three impressive benefits: No down payment requirement (for homes up to $500,000); no private mortgage insurance; and up to $2,000 in closing cost assistance.
When getting a mortgage through SECU, eligible buyers in North Carolina (including first-time home buyers, veterans or those in a targeted census tract) can combine it with a Mortgage Credit Certificate to save on their federal income taxes.
SECU partners with the Federal Home Loan Bank of Atlanta, which offers two programs to make homeownership more affordable for low-income households:
First-Time Home Buyer Assistance Program: Offers up to $12,500 in down payment and closing cost assistance as a forgivable grant to borrowers who meet qualifications, including staying in the home for at least five years.
Community Partners Program: Offers up to $15,000 in assistance for current or retired workers in helping professions including law enforcement, education, health care, firefighters and first responders; as well as active-duty members of the U.S. military, veterans or their surviving spouse.
» MORE: How to apply for a mortgage
How we score SECU
Every year, NerdWallet writers and editors use the latest data and independent research to score lenders on an overall rubric, reflecting factors that are most important to mortgage borrowers. Select Why This Category Matters below to learn more.
SECU has a NerdWallet home loans rating of five stars overall. Here’s a breakdown of this year’s score.
Category | Star rating |
|---|---|
Average mortgage rates and fees | |
Mortgage rate transparency | |
Variety of loan types | |
Customer experience |
- Why This Category Matters
Average mortgage rates and fees (30%)
Our team analyzes federal data to compare mortgage lenders’ origination fees and offered mortgage rates, measuring annual averages across all loan types, as reported by the lenders. The lowest combination of average rates and fees earns the highest star rating in this category. (It’s worth noting that loans considered higher risk, including those such as FHA loans that are easier to qualify for, often have higher interest rates and fees.) Pro tip: In some cases, paying upfront fees may lower a borrower’s mortgage interest rate.
Mortgage rate transparency (25%)
We check how straightforward it is to comparison-shop rates online. NerdWallet’s transparency ratings are higher for lenders that post sample rates on their sites, and highest for sites with self-serve tools that allow shoppers to see what rates might be like for their particular loan. Pro tip: Borrowers who compare customized rate quotes by applying to three or more lenders could save thousands of dollars over the life of their loan.
Variety of loan types (25%)
Finding the right mortgage is different for each borrower. The highest star ratings in this category are awarded to lenders that our research shows offer a wide range of loan types, improving the odds that a borrower will find the best match for their needs: options for purchase and refinance; fixed-rate and adjustable-rate loans; government-backed FHA, VA or USDA loans; renovation or construction loans; and home equity loans or HELOCs.
Customer experience (20%)
How easy is it to interact with this lender? The highest-rated lenders in this category offer features that are convenient and clarifying for borrowers, such as: an online application, multiple customer service options, a helpful mobile app and candid closing timeline communications.
SECU also earned bonus points for offering conventional loans for manufactured homes; offering assistance for first-time home buyers; and offering at least one product that accommodates borrowers with lower credit scores.
What borrowers say about SECU
NerdWallet’s lender star ratings assess objective qualities, including rates, fees and loan offerings. To help you understand borrowers’ subjective experiences, NerdWallet gathers customer satisfaction ratings from J.D. Power and Zillow, but SECU of North Carolina didn’t have sufficient data from either source for NerdWallet to share. We also contacted SECU customer support.
🤓 Our Nerds say ...
Members are happy with SECU’s mobile app. It earns a 4.9 rating on the App Store, reflecting close to 200,000 reviews. That’s impressive for a regional credit union — we’ve seen much larger lenders offer apps with lower ratings and fewer features.
Alternatives to a home loan from SECU
We recommend comparing mortgage rate offers from three or more lenders.
For a credit union experience, Bethpage Federal Credit Union serves customers in nearly every state, and its membership requirement is easy: Just open a savings account with a $5 minimum deposit.
Andrews Federal Credit Union offers up to $12,500 in down payment or closing cost assistance to first-time home buyers who meet income requirements and other qualifications. Andrews also offers government-backed loans including VA and FHA loans.
More from NerdWallet
NerdWallet’s overall ratings for mortgage lenders are evaluated based on four major categories: average mortgage rates and origination fees, rate transparency to consumers, variety of loan types (purchase, refinance, fixed and adjustable, for example) and customer experience. Among the factors we consider in these categories are: options to apply for home loans online, typical time to close, mobile app experience, level of detail about mortgage rates on lender websites, and NerdWallet’s own analysis of the rates and fees lenders reported in the latest available Home Mortgage Disclosure Act data. These and other items inform detailed rubrics, which generate ratings from 1 star (poor) to 5 stars (excellent). Read more about how we rate mortgage lenders here.
