State Employees’ Credit Union (SECU) Mortgage Review 2023 Credible

State Employees’ Credit Union (SECU) is a full-service financial institution headquartered in North Carolina. Memberships are available to current and retired employees of the state of North Carolina, government employees working in North Carolina, and eligible spouses and immediate family members. You’ll need to visit a local branch or call customer service to apply for membership.

Once you join, you’ll have access to the SECU Fast Mortgage service, which allows you to apply online and receive up to 100% financing on your home loan — no down payment or private mortgage insurance required.

At a glance: SECU offers innovative loan programs with no private mortgage insurance required even for low-down-payment loans, but membership is restricted to North Carolina state employees and eligible family members.

In this review:

Credit Union mortgage purchase review
State Employees’ Credit Union mortgage refinancing review
How does SECU stack up?

State Employees’ Credit Union mortgage purchase review

Best for:

Residents of North Carolina and surrounding states
First-time buyers
Buyers looking to finance a non-traditional home type

Standout feature: SECU has a variety of financing options and special mortgage programs.

SECU has several mortgage programs, but you won’t find jumbo loans or government-backed loans here. Conventional loans at SECU stand out — you can borrow up to 100% of the home’s value with a fixed-rate mortgage and an adjustable-rate mortgage, and you won’t have to pay mortgage insurance.

SECU home loans also include the credit union’s own low- and no-down-payment options as well as loans for first-time homebuyers are also available.

As long as you qualify for membership, SECU will consider loan applications from borrowers who live in Georgia, North Carolina, South Carolina, Tennessee, or Virginia, and/or borrowers who wish to purchase property in any of those states.

Mortgage programs	Conventional, special mortgage programs (e.g., manufactured home,
Fixed-rate loan terms	Conventional: 10, 15, 20, 30 years Manufactured home: Up to 15 years New construction: 15, 20, 30 years Historic preservation: 10, 15, 20 years
Adjustable-rate loan terms	5/1
Rates and fees	Origination fee: 1% of loan amount (up to $2,500)
Min. credit score	Contact lender for credit requirements
Min. down payment	Conventional: 0% (up to $400,000) Manufactured home: Contact lender New construction: 10% Historic preservation: 30%

Pros and cons of buying a home through SECU

Before you take out an SECU mortgage, review the pros and cons of financing your home with the credit union.

Pros

Up to 100% financing on fixed-rate loans and ARMs, plus no down payment or PMI
Assistance for first-time homebuyers, including help with closing costs
Special mortgage programs, such manufactured home loans and new construction loans

Cons

Limited loan types
Only available to borrowers in certain states
ARM terms limited to 5/1

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State Employees’ Credit Union mortgage refinancing review

Best for:

Residents of North Carolina or other eligible states
Homeowners with enough equity for a cash-out refinance
Homeowners looking for a home-equity line of credit

Standout feature: SECU’s mortgage refinance loans include cash-out options.

The SECU home refinance selection is limited, but it’s also very straightforward, so you’ll know right away what your options are.

The fixed-rate and adjustable-rate loans are the same products as described above for purchases. You can take cash out in some instances and finance larger amounts depending on the interest rate and loan type you choose.

For example, while SECU lets you finance up to 100% of a conventional purchase loan, the lender also allows financing of up to 110% on adjustable-rate loans if you’re doing a no cash-out refinance.

Tip: If your primary reason for refinancing is to fund a major, ongoing expense, a home equity line of credit might be a better choice. SECU offers HELOCs for primary homes, second homes, and investment properties, and you’ll have a 15-year draw period during which you’ll only pay interest on the amount you’ve borrowed.

Mortgage refinance programs	Conventional, manufactured home
Fixed-rate loan terms	Conventional: 10, 15, 20, 30 years Manufactured home: Up to 15 years
Adjustable-rate loan terms	5/1
Rates and fees	Origination fee: 1% of loan amount, up to $2,500 Refinance fee: 0.50% of loan amount
Min. credit score	Contact lender for credit requirements
Max loan-to-value ratio	100% with no cash out; 110% for ARM (up to $400,000) 90% with cash out for primary or second home 80% with no cash out for investment property 65% with cash out for investment property

Pros and cons of refinancing through SECU

SECU’s refinance loans have drawbacks, but there are a number of benefits that could make up for them.

Pros

Second homes and investment properties eligible for refinancing
No application fee or credit-report fee
110% no-cash-out refinancing into an ARM

Cons

Refinance fee on top of origination fee
Limited loan types, especially for adjustable-rates
Relatively low maximum loan amount for investment properties

Find Out: How to Refinance Rental and Investment Properties

How does SECU stack up?

If you like SECU’s special loan programs but don’t live in one of the states SECU serves, Northpointe Bank might have what you’re looking for. Like SECU, Northpointe is a full-service financial institution with home loans for residential and investment properties. And it also caters to buyers with special financing needs with a large number of proprietary loan products.

Credible can help you compare mortgage rates from our partner lenders and potentially save you thousands of dollars on your loan. We also make it easy to upload your documents when you’re ready to apply for a mortgage loan.

All your loan processing happens right on our platform, but our dedicated support team has your back in the event you need assistance.

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Meet the expert: Daria Uhlig

Daria Uhlig is a contributor to Credible who covers mortgage and real estate. Her work has appeared in publications like The Motley Fool, USA Today, MSN Money, CNBC, and Yahoo! Finance.