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Costco mortgage review

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Explore a marketplace of loan options and special member discounts.

Costco members already enjoy discounts on groceries, electronics and clothes, but now take your membership even further by using the mortgage program for Costco members. Depending on your membership, lender fees could be limited to just $350 or less — potentially saving hundreds up front.


Loan types Conventional, Refinance, Jumbo, FHA, VA
Other minimum credits Varies by loan type
Other fees Fees vary by lender. Fee caps are only available to Costco members and amounts depend on membership level.


  • Origination fee cap
  • Multiple lenders
  • Online process


  • Experience may vary
  • No upfront terms
  • Loan amount limits aren't easily accessible
While it holds an A+ rating with the Better Business Bureau, Costco isn't accredited. It also has an average rating of 2.5 stars across 100 customer reviews, with most negative reviews centered around purchases and poor customer service experiences. Keep in mind that people are more likely to leave negative reviews than positive, and that your experience may vary.

Given Costco functions as an intermediary, it's not the main contact you will have when you apply with a lender through its mortgage program. That said, if the program has you considering a Costco membership it's good to know what kind of service you can expect.

What types of loans does Costco offer?

Costco doesn’t provide or service mortgage loans itself. Instead it offers access to a marketplace where you can connect with up to four lenders that offer special fee caps to Costco members. Because it’s a marketplace, there’s a decent selection of loan types available.

Conventional loans

Typical mortgages that range from 15 to 30 years and are either fixed-rate or adjustable are available through the mortgage program. The specific terms of the loan will depend on your qualifications and the lender you work with.

Jumbo loans

When what you’re borrowing goes above what’s considered a standard amount for a mortgage in your area, it becomes a jumbo loan. Jumbo loans are typically very similar to conventional loans, but carry higher rates.

Veteran loans

Qualified veterans can apply for a mortgage or refinance an existing one, often at rates that are better than a standard loan for the same amount.

FHA loans

Down payments for first-time home buyers can be as low as 3.5% of the purchase price with an FHA-insured loan. Credit qualifications are also more lenient thanks to government backing.


If you already have a mortgage, you could get better terms and a lower rate by refinancing with one of the lenders through Costco’s mortgage program.

Which lenders does Costco work with?

As of September 2019, the mortgage program for Costco members consists of:

  • Berkshire Bank
  • Consumer Direct Mortgage
  • First Choice
  • J. G. Wentworth
  • NBKC Bank
  • Mutual of Omaha Mortgage
  • Strong Home Mortgage

Costco fees

You don’t have to pay anything to use the mortgage program for Costco members — you don’t even have to be a member to use the marketplace. Each lender, however, has fees associated with taking out a mortgage. And to qualify for a cap on those fees, you’ll need a Costco membership.

Some typical fees you’ll likely encounter when you take out a mortgage include:

  • Origination. The loan officer or broker that helps you get your mortgage is paid this commission.
  • Underwriting. Fee associated with your full application and submitted documents being processed and assessed.
  • Third-party. Surveys, title searches and appraisals all come with fees that aren’t charged by the lender, but still fall on the buyer to pay.
  • Ongoing. Once you start paying off the mortgage keep an eye out for incidental fees that can occur, such as late or returned payment fees.

Lender fee limits

Part of the benefit of using the mortgage program is that you can qualify for a cap on lender fees. The limit on lender fees depends on your membership level.

  • Gold Members. Fees limited to $650
  • Executive Members. Fees limited to $350


Because the marketplace hosts a range of providers, the requirements vary based on which you choose to work with. Credit score, debt-to-income ratio and other measures of financial health can affect your approval chances, but you will only know how once you’re matched with a lender.


Depending on your situation and the lender you end up with, you may need some or all of the following documents:

  • State or federal ID, such as a driver’s license or passport
  • Most recent pay stubs
  • W-2 or I-9 tax forms from the past two years
  • Tax returns from the past two years
  • Bank account statements
  • Other asset statements
  • Proof of rental payments
  • Proof of rental payments

Here’s what we learned from: John Alexander

John Alexander, Director of The Mortgage Program for Costco Members

John Alexander
Director of the mortgage program for Costco members

This mortgage program is designed to provide exclusive benefits to Costco members. We make sure members get the best of all worlds: great rates, low fees and extremely high levels of service.

Whether it be a primary residence, an investment property or a vacation home, we’re there to ensure that homebuyers get the best value possible.

How to get a home loan with Costco

To use the Costco mortgage program, you’ll need to follow a few steps.

  1. Go to the Costco mortgage services page
  2. Select See current rates
  3. A pop-up will inform you that you’re going to an external site, select Visit external link
  4. Fill out the form with your loan purpose, Costco membership number if you have one, estimated credit score, personal information and loan information then select See my results
  5. View your rate options to compare from up to four lenders
  6. Follow up with the lender of your choice

Pros and cons of Costco


  • Origination fee cap. Costco members can enjoy a limit of $350 or less on origination fees, depending on membership level.
  • Multiple lenders. Choose from up to four lenders within the marketplace of lenders.
  • Online process. Start the process online with just a few pieces of information to get prequalified.


  • Experience may vary. Since you can end up with one of several lenders, you’ll have to check independent reviews of each if you’re curious about other customer experiences.
  • No upfront terms. While you can check your rate, there aren’t general ranges available to check ahead of time without submitting your name, phone number and email.
  • Loan amount limits aren’t easily accessible. Just as terms aren’t available ahead of time, neither are loan limits.
Ready to compare lenders?
View mortgage, refinance and home equity rates from multiple lenders and apply online.

Need help? Talk to a customer specialist


What is Costco?

Costco is a wholesale warehouse store that sells many items in bulk at discounts to its members. Headquartered in Issaquah, Washington, Costco’s first warehouse opened in 1983 in Seattle, Washington and now has locations worldwide.

Frequently asked questions

Expert review

Rhys Subitch

Review by

Rhys Subitch is a writer and editor at Finder who tackles topics across the site. With half a decade of experience researching, editing and writing for a Fortune 500 company, university and several independent publications, Rhys brings readers the most up-to-date and curated info on all things finance.

Expert review

Costco members can benefit from its $350 cap on origination fees that may save hundreds. With the ability to compare up to four lenders at once, the program could also save you time. But it’s not upfront about terms without providing your contact info.

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