University Federal Credit Union (UFCU) is a member-owned, not-for-profit cooperative that was founded in 1936.
Currently, more than 329,000 members “own” the credit union, and the number of its total assets equals more than seven billion dollars. UFCU is currently headquartered in Austin, Texas, and only services the central Texas region.
UFCU offers a range of services from financial help to education and product services. Among these are included financial health advisory, home loans, insurance options, investment opportunities, member service, typical checking and savings accounts for members, and outstanding member service.
University Federal Credit Union offers physician mortgage loans that are customized to the needs of medical professionals that often struggle with qualifying for traditional home loans due to student debt and other mitigating factors.
Residents, fellows, and practicing physicians alike can qualify for $424,000 with no down payment required or $1,500,000 with flexible downpayment options with no need for private mortgage insurance (PMI). These loans also have greater equity positions than many others that different loan programs will offer.
Eligible professionals include Medical Doctors (MD), Doctors of Osteopathy (DO), Doctors of Dental Surgery (DDS), and Doctors of Dental Medical.
However, is isn’t just doctors that can qualify for special loans. Indeed, nurses can qualify for special Community Hero loans that have low down payments, no requirements for mortgage insurance, and greater equity positions.
No private mortgage insurance required
University Federal Credit Union required no private mortgage insurance (PMI) from any medical professionals who qualify for the physician loan. If you have to get PMI for a loan, you’re sure to pay hundreds of extra dollars every month as an insured precaution for your lender. If you default on any payments, the PMI will protect the business, not you, from harm. Additionally, PMI typically costs approximately 20% of the value of your home--one-fifth of your house would just be paid in insurance money. That can greatly set you back with any financial goals you have whether they be repaying student loans, paying off your home loans faster, or even investing the money in your future.
Good customer reviews online
University Federal Credit Union has a 3.1-star rating out of five stars on WalletHub, a reputable business-ranking service online that collects data from real customers who discuss their experiences in WalletHub’s forums. This above-average rating is attributed to good general rates and their upbeat, friendly staff.
Loan options for nurses
Not many banking or lending companies offer loan options specifically catered to nurses or healthcare professionals without doctorates, but University Federal Credit Union has crafted a special home loan that is meant to aid community heroes including firefighters, police officers, teachers, and nurses--all groups of people who can greatly benefit from the competitively lower rates and lack of required PMI.
Very limited locations
University Federal Credit Union only serves the central region of Texas, so they are, by far, one of the most restrictive physician loan lenders. If you don’t live in Texas, it will be very difficult to conduct any business with the credit union, especially with in-person transactions. This is especially troublesome because taking out a home loan is one of the biggest financial decisions a person will ever make, so borrowers generally prefer the comfort of having face-to-face conversations with their lending agents so that they can carefully cover every aspect of the loan. Without at least the barest sense of personal connection, it can be a lot harder knowing who to turn to if something goes wrong with payment plans or anything else relating to the physician mortgage loan.
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Jack is the Head of Content Marketing at LeverageRx, the personal finance company that simplifies how healthcare professionals shop for financial products and services. A Creighton University graduate and former advertising creative, he has written extensively about topics in personal finance, work-life, employee benefits, and technology. His work has been featured in MSN, Benzinga, TMCNet, StartupNation, Council for Disability Awareness, and more.