Credit Union of Texas mortgage review
Offers low down payment and no PMI mortgage programs, but branch locations are limited.
- Choose this lender for first-time homebuyer programs.
- Choose another lender if you live outside of Dallas, Texas.
- A good option existing CUTX members.
Minimum credit score
Minimum down payment (Conventional)
Only available in: TX
|Loan products offered||Conventional, Jumbo, FHA, VA, Home Equity/HELOC, Refinance|
|Minimum credit score||Conventional: 620|
|Minimum down payment (Conventional)||3%|
|State availability||Only available in: TX|
Our take on Credit Union of Texas mortgage
If you’re looking for a Texas-only, Dallas-centric credit union that offers first-time homebuyer programs and invests in the local community, the Credit Union of Texas (CUTX) might be a good fit. But branch locations are limited, and customer complaints indicate the credit union’s mortgage servicing could use improvement.
We also called the company twice, and both loan representatives we spoke with didn’t answer questions directly, indicating a lack of transparency. On the plus side, the credit union offers a preferred realtor program with cash rebates of up to $1,500 that can help you save on closing costs.
Compared to other banks and credit unions in Texas, like Randolph-Brooks Federal Credit Union, branch locations are limited. So unless you’re a current member of CUTX, it may be worth considering other lenders, especially if you’re outside of Dallas.
Credit Union of Texas requirements
To find out if you meet the requirements for a CUTX home loan, call or fill out an application online. Basic eligibility includes:
- Residency in Texas
- Two years’ history of employment
- A FICO credit score of 620 or higher
- No history of bankruptcy in the past two years
Personal and financial details required to apply for a mortgage from Credit Union of Texas include:
- 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
- Other documentation
Costs and fees
The CUTX doesn’t disclose its fees online. But according to information on its website, you can expect to pay about 2% to 5% of your home’s total cost in fees and other closing costs, including:
- Application fee of $25 to $150
- Underwriting fee of $400 to $900
- Appraisal fee of $300 to $500
- Loan origination fee equal to 1% of your loan’s value
- Title research and insurance of around $2,000 (for properties under $1 million)
- Other fees, such as legal fees, wire transfer fees, broker fees, court filing fees and more
How to apply for a mortgage with the Credit Union of Texas
To get started:
- Go to the CUTX website and select Home Loans, then select Apply for a Mortgage.
- Follow the steps to create a new account. Enter your name, email and phone number, set up a username and password and check your email to verify your account.
- Provide your contact information, coborrower information (if any), property information, loan amount, down payment information, current address, Social Security number and contact information.
- Next, you’ll be asked a series of questions about your assets, employment and income. Consent to a credit authorization involving a hard credit pull and electronic disclosures and answer the legal and demographic questions. Review your answers and submit the application.
- Wait for a loan officer to reach out to you about next steps.
We ran into issues starting an online application, including conflicting instructions and cookie errors. Alternatively, call 972-705-4845 to apply by phone or to speak with a CUTX home loan representative.
What types of mortgages can I get through Credit Union of Texas?
Other mortgage products offered by Credit Union of Texas
CUTX also offers these specialized types of mortgages:
- 5% down – No Mortgage Insurance. By not requiring private mortgage insurance (PMI), this 95% LTV mortgage option can help you save on your monthly mortgage payments.
- Fixed HELOCs. CUTX offers fixed-interest HELOCs with no income verification and no closing costs for loans under $400,000. Choose interest-only payments for up to 10 years.
- Home Equity loans. Available for single family, owner-occupied homes in Texas, including houses, condos, townhomes and duplexes.
- Mortgage refinance. Can be used to lower your interest rate, shorten your term or to consolidate debts such as student loans and pay off expenses.
Credit Union of Texas reviews and complaints
As of August 2022, the CUTX has a 2.5 out 5 rating on Yelp from 71 reviewers and a 1.33 out of 5 rating on the Better Business Bureau (BBB) website from 12 customers, with 40 complaints registered in the past three years. The Credit Union of Texas is not accredited with the BBB and has an A+ business rating.
Positive customer reviews mention good in-person experiences at local branches. Customer complaints involving home loans mention poor service and mistakes, long wait times on the phone and problems getting issues resolved after moving away from a branch location.
Pros and cons of Credit Union of Texas
- First-time homebuyer programs. Low down-payment options and flexible credit scores can help new homebuyers qualify for financing.
- 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.
- Multiple payment methods. Pay your mortgage online, by mail or by phone for a fee.
- Membership criteria. Credit Union of Texas membership is only available to eligible residents who live or work in the greater Dallas area.
- 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 only get in-person help within this region.
What is the Credit Union of Texas?
Founded in 1931 in Dallas, Texas, CUTX boasts $1.6 billion in assets and provides services to more than 141,000 members across all 50 states. It also offers banking services as well as personal, auto and home loans. CUTX is owned by its members and deposits are federally insured by the National Credit Union Administration, a US government agency.
Alternatives to Credit Union of Texas mortgage
Credit Union of Texas offers a standard range of mortgage products, including home equity loans and no closing cost HELOCs. And CUTX’s 5% down, no PMI mortgage may appeal to borrowers who don’t have a lot of savings and want to keep monthly payments to a minimum. However, its customer service isn’t deemed to be the best.
For a greater array of mortgage options and good customer service marks, consider Draper & Kramer Mortgage, North American Savings Bank and Stearns Lending. They have an impressive selection of loans, overwhelmingly positive customer reviews and may consider alternative documentation in their underwriting processes.
If you’d prefer a fully digital lender with a range of popular range of loans and a minimum of handholding, you might like Better or Beeline. Both offer $0 origination fee loans, and their 24/7 online application process could help you get a quicker preapproval letter — to get you house hunting right away.
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