TFCU Mortgage Rates Review

Teacher’s Federal Credit Union (TFCU) was founded in 1952 and is headquartered in Hauppauge, New York.

It has more than 320,000 members and $7 billion in assets and offers a variety of mortgage and home equity options. The Better Business Bureau’s rating for this credit union is C-, and it’s not BBB accredited.

In this review, we will cover everything you need to know before purchasing a mortgage loan through TFCU. 

TFCU Highlights

• Part of the CO-OP Shared Branch network
• One of the 20 largest credit unions in the country by asset size
• Offers mini home equity loans so borrowers can access home equity and pay off the loan within shorter periods
• Provides mortgage products specific to condo, coop or second home purchases
• Offers a no closing cost mortgage option
• Finances properties in New York, the Carolinas, and Florida
• States serviced: Teacher’s Federal Credit Union’s 31 branches are located in New York, but is a partner of the Credit Union Service Network, making its services available nationwide. TFCU only provides financing for properties in New York, the Carolinas, and Florida.

History of Teacher’s Federal Credit Union

TFCU has been in business for 67 years and, with more than $7 billion in assets, and is one of the largest credit unions in the nation. It serves more than 320,000 members and has 31 branches throughout Long Island, Queens, and Manhattan.

It provides financing options for properties in New York, the Carolinas, and Florida. It’s not listed among the top 10 mortgage originators dominating the industry, or in the Consumer Finance Protection Bureau’s top 25 mortgage lenders by number of originations.

TFCU offers a variety of loan, refinance and home equity products, including fixed- and adjustable-rate conforming and jumbo mortgages. It also has several products tailored to specific types of purchases, like condominiums or coops. The home equity loan products are unique in that TFCU offers mini home equity loans, which can have terms of between 0 and 240 months.

The lender reputation has been tainted by a BBB rating of C- due to the credit union failing to respond to numerous consumer complaints.

This credit union has fairly straightforward mortgage requirements, with a general minimum credit score of 620, down payment of 3 percent and maximum debt-to-income ratio of 45 percent.

Loans Offered by Teacher’s Federal Credit Union

TFCU offers a variety of mortgage and home equity options, including conforming and jumbo loans. They don’t provide access to government-sponsored mortgage programs like USDA, FHA, or VA loans.

Typically, fixed-rate mortgages are best for homeowners who plan to stay in their home for long periods while adjustable-rate mortgages are better for those who intend to sell or refinance their mortgage within the introductory period, or who expect to increase their income before the initial period is over.

Jumbo mortgages are available to homebuyers who plan to borrow between $484,350 and $3,000,000. Loan amounts lower than this are eligible for conforming loans.

Fixed Rate Mortgage

The fixed-rate mortgage option available at TFCU has term options of between 10 and 30 years. This can be used for a new mortgage or a refinance.

Adjustable Rate Mortgage

TFCU offers a variety of adjustable-rate mortgage options, including 5/1, 7/1, and 10/1 terms. The term length on each of these is 30 years, and after the initial period (five, seven, or 10 years, respectively), the interest rate will be adjusted annually.

Jumbo Mortgage

Jumbo mortgages from TFCU can be for amounts between $484,350 and $3,000,000. There are fixed-rate and adjustable-rate options. Fixed-rate jumbo mortgages can have terms of between 10 and 30 years; adjustable-rate jumbo mortgages all have 30-year terms and can have 5/1, 7/1, or 10/1 structures. Jumbo loans can be used for a new home purchase or a mortgage refinance.

Second Home Financing

The second home financing product is designed to purchase a home that the owner will occasionally occupy, without deriving rental income. This product is available as a fixed-rate mortgage for 10 to 30-year terms or as an adjustable-rate mortgage with a 30-year term. ARMs for second home financing can be structured as one-year, 3/1, 5/1, 7/1, or 10/1 loans.

HomeReady Mortgage

To qualify for the HomeReady mortgage, the borrower must complete a homebuyer education class before closing. This mortgage can be applied to a one-unit principal residence, including condos, or up to two- to four-unit primary residences that aren’t condos. This is a 30-year fixed-rate mortgage.

Coop Mortgage

Co-op mortgages are designed for homebuyers who want to purchase shares of a cooperative housing project. TFCU offers coop mortgages as fixed-rate mortgages with 15- to 30-year terms, or as 5/1, 7/1 or 10/1 adjustable-rate mortgages. The TFCU coop mortgage can be used as a new home loan or a refinance.

Condominium Mortgage

The condominium mortgage from TFCU is available as a 10- to 30-year fixed-rate mortgage or as a 5/1, 7/1, or 10/1 adjustable-rate mortgage. Rate locks are available in 30-, 60-, or 90-day limits. Additionally, borrowers can choose to purchase a one- or two-point rate reduction. This can be used for a new purchase or a refinance.

No Closing Cost Mortgage 

The no closing cost mortgage option is available as a 20- or 30-year fixed-rate mortgage or as a 5/1, 7/1, or 10/1 30-year adjustable-rate mortgage. This can be used for a new home purchase or a refinance when the borrower wants to avoid closing costs.

Home Equity Line of Credit

TFCU offers HELOCs for amounts between $10,000 and $500,000. They have a 15 year draw period followed by a 10-year repayment period. After the first 12 months, the interest rate will be adjusted quarterly.

Interest-Only Home Equity Line of Credit

The interest-only HELOC option requires only interest payments during the initial ten year draw period, which results in lower monthly payments. This decade is followed by a 15 year repayment period. This option can be a smart way to reduce payments on a HELOC from another institution. It may also come with tax benefits, though borrowers should consult a tax professional to find more information. There are no closing costs associated with this product.

Mini Fixed Equity Loan

The mini fixed equity loan gives borrowers access to their home equity for shorter terms. In all cases, the maximum amount available is $500,000, and the minimum amount accessible depends on the length of the term:

• 0 to 120 months: $10,000 minimum
• 121 to 180 months: $20,000 minimum
• 181 to 240 months: $30,000 minimum

Mini Fixed First Lien Position Equity Loan

This has the same loan amount availability range as the mini fixed equity loan: between $10,000 and $500,000, depending on the term. It requires no closing costs or title insurance and may result in tax benefits (though borrowers should consult a tax professional for more information about this). This has a faster application and approval time than other loan products. It’s best suited for homeowners without a mortgage or home equity loan lien on their property. Payment terms range between 5 to 20 years.

Mini Adjustable Equity Loan

This loan product is nearly identical to the mini fixed equity loan, but instead of having a fixed rate, the interest rate is adjusted annually, and terms start at 120 months instead of 0.

TFCU Mortgage Customer Experience

TFCU members can get the mortgage application started online or in person. The mortgage approval process is relatively fast, with some applications being approved within a few minutes.

There are helpful resources on the TFCU website for borrowers to learn more about the mortgage process. There are calculators to help people determine what their monthly payment might be, whether a 15-year mortgage would save them money if refinancing is a wise idea, and other factors related to home buying and refinancing. There are also answers to common questions related to appraisals, loans, fees, rates, closing, and the application process.

TFCU was not listed in J.D. Power’s Primary Mortgage Servicer Satisfaction Study, nor was it included in the CFPB’s list of most complained-about mortgage companies.

TFCU Lender Reputation

TFCU is a credit union in New York founded in 1952. It’s an Equal Housing Opportunity lender, a member of the National Credit Union Administration and the CO-OP Shared Branch network.

TFCU has a BBB rating of C-, primarily due to failure to respond to eight complaints filed against the business. TFCU has received 13 complaints in total, the oldest of which is dated April 27, 2016.

The CFPB did not list TFCU in its list of top 25 mortgage originators, and the bureau does not record any enforcement actions against the credit union on its site.

• Information collected on Jan. 3, 2019.

Teacher’s Federal Credit Union Mortgage Qualifications

To qualify for a TFCU mortgage, borrowers should have a credit score of at least 620, a maximum debt-to-income ratio of 45 percent, and at least a 3 percent down payment. The credit union does not accept gifted funds or down payment assistance programs for the down payment requirements.

Credit score	Ranking	Difficulty to get a mortgage from TFCU
800-850	Exceptional	Easy
740-799	Very good	Easy
670-739	Good	Easy
620-669	Fair	Fairly easy
580-620	Fair	Somewhat difficult
300-579	Very poor	Very difficult

In some cases, applicants with a non-traditional credit history or a higher DTI may be able to qualify for a mortgage, though it will be more difficult. People in this situation may consider having a co-signer on the mortgage to improve their chances for approval.

Teacher’s Federal Credit Union Phone Number & Additional Details

• Homepage URL: https://www.teachersfcu.org/
• Company Phone: (631) 698–7000, or 1-800-341-4333 for consumers calling from outside the New York metro area
• Headquarters Address: 102 Motor Parkway, Hauppauge, NY 11788

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