Established in 1961 and headquartered in Williston, New England Federal Credit Union (NEFCU) is Vermont’s largest credit union, with 90,000 members and investable assets of more than $1 billion. Serving six counties in the northwestern portion of the state, NEFCU’s stated goal is “empowering members to make good financial decisions so they can improve their overall quality of life.”
It’s primary mortgage loan products include fixed-rate and Adjustable Rate Mortgages (ARMs), Federal Housing Administration (FHA), Veterans Affairs (VA), jumbo, land, construction, and investment or non-owner occupied.
Quick Nav: NEFCU Mortgage
New England Federal Credit Union Mortgage Facts
- NEFCU is headquartered in Williston, with five locations serving six counties (Addison, Chittenden, Franklin, Grand Isle, Lamoille, and Washington)
- Provides a full range of financial product and loan services, including mortgages
- Mortgage offerings are wide ranging, with fixed-rate, adjustable-rate, VA loans, FHA loans, jumbo loans, FHA and construction among them
- Member-owned institution, totaling 90,000 and investable assets topping $1 billion
- Largest credit union in the Green Mountain State
- In addition to mortgages, NEFCU offers financial education workshops both for members and the general public. Car loans and credit cards are also available through NEFCU
History of NEFCU
Chartered and regulated by the National Credit Union Administration, New England Federal Credit Union was established in 1961 as a credit union. It’s since grown to be the largest one in the Green Mountain State, with five locations in the six counties it serves, all located in the northwest portion of the state.
Although sizeable for a low-population state, NEFCU does not make the cut as one of the largest lenders in the U.S., at least not in the top 10, according to HousingWire.
Nevertheless, NEFCU offers a sweeping array of home loan products geared for first-time homeowners or those who are looking to refinance. It has a sterling track record with its customers as well, earning an A+ rating with the Better Business Bureau.
Current NEFCU Mortgage Rates
NEFCU Loan Specifics
NEFCU mortgage rates and loan offerings appeal to those with particular needs or interests, particularly those who are brand new to the home search. Several first-time home buyer options exclusive to NEFCU are available (Vermont Housing Finance Agency, Home Possible Advantage, NEFCU’s HOME Program), but they also include standard mortgage offerings, which include:
In 15-year or 30-year increments, fixed-rate loans are ideal for homeowners who have no intentions of moving and want to lock in their interest rate so it never changes. Fifteen-year fixed loans are beneficial for those wanting to pay less interest over the life of the loan, while 30-year loans are more affordable on a cost per month basis.
ARMs, by definition, are subject to change, which makes them ideal for people who have financial flexibility. The market determines whether the adjustment causes interest to rise or fall, while the lender decides the periods wherein borrowers pay the variation in rates. For example, NEFCU has several non-conforming options, including 7/1 ARM.
The mortgages are for those whose potential house is selling for around $500 million. The minimum standard for jumbo loans at NEFCU is $424,100, an amount that can be slightly higher or lower among other leading mortgage service providers. Jumbo loans with NEFCU are available in fixed and ARM, with a down payment of as little as 5 percent.
Federal Housing Administration (FHA) loans
The Federal Housing Administration, as it’s title implies, backs FHA loans, which are primarily utilized by people who are buying a house for the first time. FHA loans are ideal for first-time homebuyers because the underwriting standards tend to be looser and instead of a 20 percent down payment, borrowers can put down as little as 5 percent.
Veterans Affairs (VA) loans
VA loans are also government-backed, only by the U.S. Department of Veterans Affairs. They serve the active or veteran military community, specifically those who served in one of the five branches (Air Force, Army, Marine Corps, Navy, Coast Guard). Unlike most other mortgage products, VA loans don’t require borrowers to make an initial down payment.
Homeowners looking to lower their rate of interest, or pay off their loans more quickly, are often best suited with refinancing loans. They can help borrowers improve their cash flow, take advantage of rates that weren’t available when they first applied for a mortgage or “cash-out” a percentage of their home’s equity to fund high-dollar purchases.
NEFCU has a MyChoice Mortgage option, which allows borrowers to determine their fixed rate and term, ranging up to 10 years.
These mortgage offerings are geared toward borrowers who plan to build their residence themselves or hire a professional to do the job. AT NEFCU, construction loans have six to 12-month terms, with permanent financing available upon completion of the project. The down payment requirement is at least 10 percent of the home’s value.
NEFCU Mortgage Customer Experience
Although NEFCU has five full-service branch locations in Northwest Vermont, many of the services and products that the firm makes available are accessible at its website. For example, applicants can request a pre-approval, purchase loan, or cash-out refinance product by filling in the requested material.
Applicants must provide personal information, such as their name, date of birth, Social Security Number and listing of assets. A mortgage officer contacts the applicant upon completion, although no information as to when that will be is available.
In addition to the latest on NEFCU mortgage rates, this mortgage provider features a number of helpful resources on its website, including mortgage calculators (refinance, comparing terms), informative articles, free seminars (pending time and location), downloadable worksheets and charts for budgeting tips, as well as brief podcasts (mostly about three to five minutes long).
There are also courses that visitors can take at their leisure. Each is interactive and runs between 15 and 30 minutes long. Course topics include creating a budget, strengthening credit scores, and understanding how credit works, planning for retirement. The “tools” section of NEFCU’s website also has guidelines on how potential buyers can determine how much house they can afford to buy.
NEFCU is a regular “Daysie” winner, an award program run by Seven Days, a weekly publication that covers the Vermont region. Last year, NEFCU won its seventh straight Daysie for “Best Bank/Credit Union” in Vermont and its fifth consecutive award for “Best Mortgage Broker” in the state. Readers of Seven Days decide from a list of nominees. Nearly 22,000 cast their votes in the 2018 iteration of the Daysies.
NEFCU is very community-oriented, making donations to various causes in the Green Mountain State and Greater New England. For example, it delivers $625 donations to random Vermont recipient organizations throughout the year totaling $10,000. Vermont Fresh Network, Vermont Elite Basketball, and Ronald McDonald House Charities are some of the groups to which NEFCU has donated.
- Information collected on Feb. 13, 2019
NEFCU Lender Reputation
For the duration of the credit union’s founding, tracing back to 1961, NEFCU has been member-owned and operated. It now boasts a membership total of over 90,000. Anyone who works goes to school or attends church services in six counties (Chittenden, Franklin, Grand Isle, Washington, Lamoille, and Addison) is eligible to join.
It’s also affiliated with or a member of several organizations, including the Federal Deposit Insurance Corporation and the National Credit Union Administration, an equal housing lender. Member deposits are insured by the National Credit Union Share Insurance Fund up to $250,000. It’s Nationwide Mortgage Licensing System ID is 446767 with a routing number of 211691127.
As of Feb. 12, 2019, NEFCU has received no reviews, complaints or a rating on TrustPilot, but it maintains high marks with the Better Business Bureau. Although not accredited, NEFCU has an A+ rating with the BBB and its headquarters location has just one complaint in the last three years. It’s worth noting that this one complaint was unrelated to its mortgage products or services.
|Credit score||Quality||Ease of approval|
|620 and below||Poor||Somewhat difficult|
|No credit score||n/a||Difficult|
|Debt-to-income ratio||Quality||Likelihood of approval|
|35% or less||Manageable||Likely|
|50% or more||Poor||Limited|
NEFCU goes by the rule of thumb that every applicant is different, so there’s no silver bullet to qualify for a mortgage. For low-interest rates, and credit scores have an inverse relationship. The higher your score, the more likely borrowers are to get a lower interest rate, the ideal being around 740, according to FICO.
The same general standard applies to one’s debt-to-income ratio. Ideally, mortgage payments should not be higher than 35 percent of the monthly income. Anything above that and approval is still possible, but likely harder to achieve.
NEFCU Phone Number & Additional Details
Homepage URL: http://www.nefcu.com
Company phone: 800-400-8790
Headquarters Address: 141 Harvest Lane P.O. Box 527 Williston, VT 05495