Yes, and it could save you thousands.

Most people head straight to a big-name financial institution when it is time to buy a home. There is a smarter option that millions of buyers overlook every year. It could save you a lot of money.

You can absolutely get a mortgage at a credit union. For a lot of people, it turns out to be a much better deal than going through a traditional financial institution.

Credit unions offer many options for home loans. They often come with lower rates, fewer fees, and a more personal experience. That combination matters when you are making the biggest purchase of your life.

Here is everything you need to know about getting a mortgage at a credit union, including how to join one and what to expect along the way.

What is a credit union and how is it different from a bank?

A credit union is a nonprofit financial cooperative owned by its members. Every person who opens an account becomes a part-owner of the institution.

Credit unions are run to serve their members. Instead of pocketing extra revenue, credit unions return profits back to members in the form of better rates, lower fees, and improved products and services.

A recent study found that Financer's analysis of Q4 2025 NCUA data shows a 0.24% rate advantage on a $300,000 30-year mortgage translates to roughly $15,000 in total interest savings over the life of the loan. That is real money, and it comes simply from choosing a different type of lender.

What kinds of mortgages can you get at a credit union?

Credit unions offer the same core mortgage products you would find at other financials. Town & Country Credit Union offers:

The real benefits of a credit union mortgage.

Credit union mortgages do not just match the competition. In several key areas, they beat them. Here is what the data shows.

  • Lower interest rates: Recent data from Bankrate's Q2 2025 NCUA data shows the average rate on a 30-year fixed mortgage was 6.74% at credit unions compared to 6.84% at banks. That gap compounds over decades into real money.
  • Lower fees: Credit unions are not chasing shareholder returns so they can afford to trim or eliminate fees that banks routinely charge. That means lower origination fees, reduced closing costs, and fewer surprise charges at the table.
  • Higher approval rates: A recent study from credit.com's analysis of HMDA data found that credit unions approved 61.23% of home mortgage applications. They are also more likely to work with borrowers who have lower credit scores or smaller down payments.
  • More flexible underwriting: Credit unions tend to look at the full picture instead of following a rigid checklist. If you are self-employed, have non-traditional income, or your finances do not fit a neat box, a credit union mortgage loan officer is more likely to find a path forward.
  • Lower PMI: When you finance through a credit union, you'll get a lower rate on Private Mortgage Insurance, which can save you thousands of dollars over the life of your loan.

 

How do I get a mortgage at a credit union?

The process is straightforward. Here is how it works from start to finish.

  1. Join the credit union: Membership is typically based on where you live, work, worship, or go to school. At Town & Country Credit Union, you qualify by living within 75 miles of Minot or 50 miles of Fargo or Kenmare, or by having an immediate family member who is already a member. Getting started is as simple as opening a share savings account with a $5 deposit.
  2. Check your credit and finances: Pull your credit report and review your debt-to-income ratio. Town & Country Credit Union members can view their credit score within TCCU Online at no cost. Credit unions are more flexible, but knowing your numbers helps you understand which loan types and rates to expect.
  3. Gather your documents: You will typically need proof of income such as W-2s or tax returns, proof of assets including your down payment via bank statements, a list of current debts, and a recent credit report. Having these ready speeds things up considerably.
  4. Get pre-qualified: Pre-qualification gives you a ballpark for how much you can borrow and shows sellers you are serious. You can start a mortgage application online or use the mortgage calculators to run your numbers.
  5. Close: Once you have found a home and made an offer. A mortgage loan officer will walk you through underwriting. Because credit unions often handle this locally, decisions can come faster and you will usually have a real person to call with questions. You can meet the mortgage team before you even apply.

The bottom line: Yes, you can get a mortgage at a credit union. For a lot of buyers, it is one of the best financial decisions they will make.

Credit unions offer competitive loan products, lower rates, more flexible approvals, and a high level of personalized service.

Whether you are buying your first home or refinancing an existing one, a credit union is worth a serious look. A rate that is even a fraction lower can mean thousands of dollars back in your pocket over the life of the loan.

Ready to explore your options? Book a free consultation with the Town & Country mortgage team and find out what you qualify for today.