I’ve seen reports recently about the stark contrast in availability of financing when comparing traditional lenders to credit unions.  Apparently, credit unions as a group are not suffering from the “credit crisis” like the big mortgage lenders and banks are.

In the interest of full disclosure, note that what I’m sharing with you here is based on my research, but not my experience.  I have never done business with any credit union.

According To Realty Times, “credit unions avoided writing subprime home loans and other easy-money mortgages. They also shunned selling packages of mortgages to Wall Street moguls who packaged them into now low- to no-return securities.”

If this is true, it suggests that credit unions may be on the verge of a boom, as they can offer capital that isn’t available elsewhere.  So for your own home, and for homes you are attempting to sell to buyers, your local credit union may be a good funding alternative.

However, credit unions generally use a more traditional and detailed application/approval process than other lenders.  With credit unions, your credit history does matter, your down payment does matter and your ability to pay does matter – so nobody should expect “subprime” treatment.

Nevertheless, the unique structure of credit unions (as non-profit financial institutions that generally hold their own notes long-term) can mean a greater availability of capital.

What I am not certain of is whether credit unions offer financing for investment properties.  If you know the answer to this, let us know in the comment area below.  Or if you have other experience with credit unions – positive or otherwise – please share it with us so we can all make an informed decision.

Thanks for reading RealEstate.BryanEllis.com!