Connexus Credit Union mortgage review
A lender with competitive rates below the national average, but watch out for that automatic savings account.
Connexus Credit Union offers low down payment loan options, without including government-backed options like FHA, VA or USDA to its suite. It’s best for borrowers who bank with Connexus Credit Union, as it requires that you open a savings account to apply.
|Loan types||Conventional, Refinance, Home Equity|
|Available States||Only available in: MN, NH, OH, WI|
- Customer support
- 30-day rate lock
- Caters to unique underwriting situations
- No government-insured loans
- Limited branch locations
What types of loans does Connexus Credit Union offer?
- Conventional. Fixed- and adjustable-rate mortgages with down payments as low as 3% and interest rates starting at 3.750%.
Other loans offered by Connexus Credit Union
- Refinance. Traditional refinancing can lower your interest rate or shorten your loan term. A cash-out refinance lets you borrow against your home’s equity. You can borrow more than your existing mortgage getting you additional cash.
- Home equity loan. Borrow up to 90% of your home’s equity. The fixed interest rate can be as low as 4.49%.
- HELOC. Home equity lines of credit (HELOC) let you borrow money as you need it, with variable interest rates.
- Construction. Loans for building a new home that generally covers the construction and the mortgage together.
Connexus Credit Union fees
Connexus Credit Union doesn’t publish its closing costs on its website. A few common fees include:
- Lender fees – such as document preparation fees and loan processing fees.
- Third-party fees – such as an appraisal fee, credit report fee and title insurance fee.
Connexus Credit Union’s website doesn’t offer any direction about its underwriting guidelines. It recommends consulting with a loan officer to discuss your situation. However, most lenders like to see a maximum debt-to-income (DTI) ratio of 43% and a 3% down payment minimum.
- Most recent W-2 or paystub
- Most recent bank statement
- Last two years of your federal tax returns — personal and business if applicable — for self-employed borrowers
- Government-issued ID
- Social Security number
Automatic savings account
Customers complain that Connexus Credit Union automatically opens a savings account with a $5 balance after closing on a loan, or if Connexus purchases the loan from another lender. Because it’s not clearly outlined in the closing process, customers are subject to its 12-month inactivity fees and low balance fees for an account dipping below $100.
Ask your loan officer about mandatory savings accounts so you’re not taken by surprise.
How to get a home loan with Connexus Credit Union
- Go to Connexus Credit Union’s website.
- On the homepage, hover over the tab Borrow and click Mortgage Loans from the dropdown options.
- Click Apply Now.
- Scroll down and select whether this is a new application or you’re finishing an old one.
- Make an account by entering your email address and date of birth.
- Give detailed information about your application – for example, where you’re at in the loan process, who is applying for this loan and how you plan to use the property.
- Click Agree to receive required disclosures electronically.
- Input property details – for example, the state, county, city and loan amount.
- Answer whether you’re going to get another loan to finance the property.
- Fill in your personal information – for example, name, Social Security number and marital status.
- Answer questions about the property.
- Select your loan.
- Input information about your assets.
- Detail your expenses.
- Fill out your income and how you can verify it.
- Click Submit. You should receive information about your loan within three business days.
Pros and cons of Connexus Credit Union
- Customer support. Live chat, email, phone, submit an inquiry online or visit a branch for more information. Loan officers list dedicated phone extension, email and personal websites.
- 30-day rate lock. Connexus Credit Union locks the interest rate for free after loan approval, with a promise to close in 30 days.
- Caters to unique underwriting situations. Connexus Credit Union works with borrowers without traditional W-2s, like the self-employed. Provide proof of a paycheck for two year.
- No government-insured loans. Connexus Credit Union does not offer VA, USDA or FHA loans.
- Limited branch locations. 13 branch locations across four states (Minnesota, New Hampshire, Ohio, and Wisconsin).
Compare other mortgage lenders
What is Connexus Credit Union?
Connexus Credit Union is a member cooperative with over $2.6 billion in assets. It serves over 360,000 members across all 50 states. In February 2019, Connexus became the sixth-largest Wisconsin Credit Union. In addition to home loans, it also offers banking services, personal and auto loans and insurance policies.
Frequently asked questions
Kimberly Ellis is a writer at Finder specializing in home loans. She hails from New York City with a BA from Queens College. She has written extensively about the real estate and finance industries. Kimberly is also a language lover and aspiring polyglot.
Connexus Credit Union is a good option for self-employed people and borrowers who may not qualify for government-backed loans. But you’ll need to become a Connexus Credit Union member, which may require opening an account with Connexus. Accounts with inactivity and a month-end balance of under $100 incur a monthly fee. Consider another lender if you don’t want the extra headache to maintain another account on top of your home loan.