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Credit Union of Texas mortgage review

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Low down payment programs, refinance options and home equity loans to those in the Dallas area.

Credit Union of Texas offers the typical range of mortgages to members in the Dallas metropolitan area, including programs that allow for down payments of 0% to 3.5% for eligible borrowers. You can start your application online, but you’ll need to work with a rep to complete your form.

Details

Loan types Conventional, Refinance, Jumbo, HELOC
Available States Only available in: TX

Pros

  • Loan options for first-time homebuyers
  • User-friendly application
  • Multiple payment methods
  • Responsive support

Cons

  • Customer complaints
  • Limited branches
The Credit Union of Texas doesn’t have any customer reviews on Trustpilot. It’s not accredited with the Better Business Bureau but earns an A+ rating based on the BBB’s internal criteria — including responses to customer complaints, which CUTX fulfills by responding to every complaint as of December 2019. Customers report competitive loan rates, but many complain about clerical and billing errors as well as unresponsive customer service. Your mileage with this financial institution may vary.

What types of loans does the Credit Union of Texas offer?

  • Conventional. Find 15- and 30-year fixed-rate mortgages requiring a standard down payment of 20%.
  • Jumbo. Loan amounts up to $2.5 million for high-value homes over conforming loan limits.

FHA and VA loans

While a loan officer confirmed that Credit Union of Texas offers FHA loans, the recommendation survey on its website claims that CUTX doesn’t. And when we called about VA loans, the loan officer we spoke to said that these loans are “currently in a bit of flux.”

It sounds like you may have some trouble getting these loans through Credit Union of Texas.

Other loans offered by Credit Union of Texas

  • Refinance. Cash-out mortgage refinancing in Texas requires a maximum 80% loan-to-value (LTV) ratio. Refinancing typically takes 30 to 45 days.
  • Home equity loan. Borrow from $25,000 to $250,000 against the equity in your home.
  • HELOC. Qualify for loan amounts of $25,000 to $750,000 for first liens at variable interest rates — and no closing costs for HELOCs under $200,000.

Credit Union of Texas fees

The Credit Union of Texas does not disclose fees on its website. But closing costs generally average between 2% and 5% of the purchasing price and include:

  • Home inspection fee
  • Title research and insurance
  • Application fee
  • Appraisal
  • Origination fee
  • Underwriting fee

Requirements

The maximum debt-to-income (DTI) ratio to qualify for a mortgage is 43%. Most lenders prefer a ratio of less than 36%, where 28% of that debt goes toward your mortgage payment.

The maximum loan-to-value (LTV) ratio depends on the loan. FHA loans allow an LTV ratio of up to 96.3%, whereas some VA loans have LTV ratios of 100% — with no down payment.

Documentation

You’ll need to upload documents to confirm your personal and financial details at the start your application:

  • Government-issued ID
  • Social Security number
  • Two or more years of W-2 statements and tax returns
  • List of assets, such as checking and savings accounts statements
  • List of debts, such as credit card statements
  • Proof of income, such as pay stubs

How to get a home loan with Credit Union of Texas

Start the application online from CUTX’s homepage:

  1. Go to the Credit Union of Texas’s website.
  2. Click the Home Loans tab, and then click Apply for a Mortgage.
  3. Enter your name, email address and other personal information. Authorize a credit check and agree to a few disclosures, and then click Next.
  4. Select how you will use the money from the loan — for example, a purchase or cash-out refinance. Click Next.
  5. Enter your date of birth, current address and other personal information. Click Next.
  6. Enter your employment information. Click Next.
  7. List your assets and liabilities as requested, then click Next.
  8. Answer declarations regarding existing lawsuits or the origin of your down payment. Click Next.
  9. Indicate your interest in electronic loan documents by clicking I Agree or I Do Not Agree.
  10. Review your application and click Submit. A loan officer will contact you within three business days to proceed with your loan.

Call 972-705-4845 to apply by phone or speak with a CUTX representative.

Pros and cons of Credit Union of Texas

Pros

  • Loan options for first-time homebuyers. Low down payment options and flexible credit scores can help new homebuyers qualify for financing.
  • User-friendly application. Required fields are clearly marked, and it’s easy to return to previous sections to complete questions you might have skipped or missed.
  • Multiple payment methods. Pay your mortgage online, by mail or by phone for a fee.
  • Responsive support. Call, email or complete a secure online form for a return call from a rep. Get answers to basic questions faster through Facebook Messenger.

Cons

  • Customer complaints. Borrowers online report clerical and billing errors on their loans. Though it appears that CUTX took steps to correct them.
  • Limited branches. CUTX serves the entire state of Texas, but branch locations are concentrated in the greater Dallas area. You can’t get in-person help outside of it.

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What is the Credit Union of Texas?

Credit Union of Texas was founded in 1931 by a small group of Dallas teachers. Today, CUTX has over $1.4 billion in assets and 141,000 members in all 50 states. It also offers banking services as well as personal, auto and home loans.

Frequently asked questions

Expert review

Kimberly Ellis

Review by


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.

Expert review

The range of mortgage programs offered by the Credit Union of Texas could mean low down payments for first-time homebuyers in the state. But analyze your mortgage statements carefully, as many borrowers complain about double charges and other billing errors. Contact the Credit Union of Texas right away to correct suspected issues.

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