Pawtucket Credit Union Mortgage Review

Pawtucket Credit Union was founded in 1926 to serve the residents and businesses of Pawtucket, Rhode Island. This member-owned financial cooperative has quickly grown to the largest credit union in the state, providing banking services to more than 114,000 members.

With assets totaling around $2.26 billion, this lender has been able to extend its services to some regions of Massachusetts, though membership is required.

Pawtucket Credit Union Quick Facts

• The Largest Credit Union in Rhode Island With Assets Totaling $2.26 Billion
• Offers a 100 Percent Financing Option for First-Time Homebuyers
• Earned an A+ Rating From the Better Business Bureau
• Provides Banking Services to More Than 114,000 Members Across RI and MA
• Credit Union Membership Is Required to Apply for a Mortgage From This Lender
• Wide Variety of Mortgage Types, Including Fixed-Rate, Adjustable-Rate, FHA, Jumbo, Quickpay, and Smart Option Loans

History of Pawtucket Credit Union

This financial institution has operated as a credit union for over 90 years, providing its members in Rhode Island and Massachusetts with a variety of banking services, including savings, checking accounts, and loans.

Pawtucket Credit Union extends a wide range of mortgage products to its members, including traditional fixed and adjustable-rate, FHA, and jumbo loans.

In addition to its more conventional offerings, this lender provides several unique loan programs for borrowers who want to pay off their mortgages quickly, such as the QuickPay and Smart Option loans. Qualified first-time homebuyers can secure up to 100 percent financing on their mortgages, though some restrictions apply.

Pawtucket’s website features several informational resources to support its members during the mortgage application process, including educational content, interest rate, and monthly payment calculators, and a streamlined pre-qualification process.

Borrowers can apply for a loan through the website or by contacting a lending agent directly. This lender currently has an A+ rating with the BBB, though its profile shows a one-star customer rating and it is not formally accredited.

Additionally, members may have difficulty finding specific mortgage eligibility information on Pawtucket’s website, as down payment and credit score requirements are not listed online.

Current Pawtucket Credit Union Mortgage Rates

Pawtucket Credit Union Loan Specifics

Pawtucket Credit Union supplies several affordable mortgage products to its members, which are backed by local decision-making and servicing support. In addition to conventional fixed-rate and adjustable-rate loans, this lender offers specialty programs like its Quick Pay and Smart Option mortgages.

Borrowers looking to quickly pay off their loans may benefit from these non-traditional lending options. Pawtucket Credit Union also provides FHA mortgages to help low-to-moderate-income homebuyers obtain financially sustainable loans, though some restrictions may apply.

Fixed-Rate Loans

This mortgage type locks down a negotiated interest rate and monthly payment amount for the full loan term, offering maximum stability for borrowers who have plans to settle down for the long term. Pawtucket Credit Union gives members a choice between 10, 15, 20, or 30-year loan terms, each with its rate expectations.

Shorter repayment periods typically result in lower interest rates, with a 10-year mortgage averaging a rate of 3.875 percent and an APR of 4.186 percent for qualified borrowers.

Adjustable-Rate Loans

In contrast to a fixed-rate mortgage, this option features a variable rate that will fluctuate in response to changes in housing marketing and the general index. Borrowers can secure a lower starting rate that can be fixed for the initial 3, 5, or 10 years of the loan repayment term.

This type of mortgage offers homebuyers unsure about their plans increased flexibility and lower monthly payments. For example, a 3/3 ARM with a 30-year loan term averages a 3.5 percent interest rate during the initial fixed-rate period.

Jumbo Loans

This lender extends jumbo loans on mortgages that exceed the conventional conforming limits set by The Federal Housing Finance Agency.

Qualified borrowers can choose between a fixed or adjustable-rate repayment method on all loans over $453,100, though the specific rate and APR information are not available on the credit union’s website. This loan type was designed to support homebuyers making high-cost property purchases.

FHA Loans

First-time homebuyers and borrowers with below-average credit scores may benefit from this federally insured mortgage. This loan is backed by The Federal Housing Administration and allows down payments as low as 3.5 percent for borrowers with FICO credit scores of 580 and above.

Homebuyers with credit scores between 500 and 579 may also qualify, though a 10 percent down payment is required. Typically, lower credit scores translate into higher interest rates and mortgage insurance premiums.

QuickPay Loans

This specialty mortgage program was created for borrowers who want to pay off their home loans quickly and who can make larger monthly payments.

Loan terms are determined as a range rather than a series of fixed options and can be negotiated as 1 to 7 years, 8 to 10 years, 11 to 15 years, or as a fixed 20-year repayment period. Pawtucket Credit Union offers this mortgage program for second homes and condos, though some restrictions may apply.

Smart Option Loans

Unlike most mortgage products, this option necessitates bi-weekly payments as a means of reducing the loan term and building equity at a faster pace. Borrowers can also save on finance charges associated with mortgage repayment, though mortgage insurance is required if the down payment is less than 20 percent.

Loan Product Overview from Pawtucket Credit Union

Loan Type	Description	Terms Available	Example Rate and APR
Fixed-Rate Loans	Stability for the Long Term	10, 15, 20, 30 Years	10-Year Mortgage, 3.875% Rate, 4.186% APR
Adjustable-Rate Loans	Initial Variable Rate	3, 5, 10-Year Fixed Periods	3/3 ARM, 30-Year Term, 3.5% Initial Rate
Jumbo Loans	For High-Cost Property Purchases	Fixed or Adjustable Rates	Rate and APR Info Not Available on Website
FHA Loans	Low Down Payment Options	First-Time Buyer Friendly	Credit Score Requirements: 580+ (3.5% Down), 500-579 (10% Down)
QuickPay Loans	Pay Off Loans Quickly	Variable Terms (1 to 20 Years)	Minimum Credit Score: 675, Up to $1.5M, for Purchases and Refinancing
Smart Option Loans	Bi-Weekly Payments for Faster Equity Buildup	Savings on Finance Charges	Mortgage Insurance if Down Payment is < 20%

Pawtucket Credit Union Mortgage Customer Experience

Pawtucket Credit Union operates 15 full-service locations throughout Rhode Island and one branch in Foxboro, Massachusetts. The small service area enables this lender to provide a personalized banking experience, which may account for its success as the largest credit union in Rhode Island.

A banking representative can be contacted during business hours face to face, by phone, or through Pawtucket’s website.

Credit union membership is required to obtain a mortgage from this lender, though specific details about member qualifications are not available on its website. First-time homebuyers can particularly benefit from partnering with this lender, as Pawtucket offers eligible members 100 percent financing on its 30-year fixed-rate mortgages.

The credit union’s website houses several useful resources, including an extensive FAQ page, a “quick quote” tool for mortgages, and a number of monthly payment and interest rate calculators. Homebuyers can obtain pre-qualification online and apply for a mortgage through the credit union’s website, though personal information (like Social Security number) is required for these processes.

Pawtucket Credit Union Lender Reputation

This credit union has supported the financial needs of its Rhode Island members for over 90 years and has earned accreditation as an Equal Housing Lender and an Equal Opportunity Lender.

Pawtucket’s members are federally insured by The National Credit Union Administration for up to $250,000, making it a reliable choice for local banking. While the institution does have an A+ rating from the Better Business Bureau, its customer review score is currently sitting at a one-star rating.

A total of seven customer complaints have been filed with the BBB over the past seven years, though the Consumer Financial Protection Bureau has not had to take any enforcement action against this lender.

• Information collected on Jan. 10, 2019

Pawtucket Credit Union Mortgage Qualifications

Loan Type	Interest Rate Type	Mortgage Insurance Requirements
Fixed-Rate Loans	Fixed	Yes, if down payment is >20% or if LTV exceeds 80%
Adjustable-Rate Loans	Variable	Yes, if down payment is >20% or if LTV exceeds 80%
Jumbo Loans	Fixed or Variable	Yes, if down payment is >20% or if LTV exceeds 80%
FHA Loans	Fixed	Yes, if down payment is >20% or if LTV exceeds 80%
Quick Pay Loans	Fixed	Yes, if down payment is >20% or if LTV exceeds 80%
Smart Option Loans	Fixed	Yes, if down payment is >20% or if LTV exceeds 80%

While the qualification guidelines vary between mortgage offerings, Pawtucket Credit Union only provides home loans to members within its banking network. Details about membership can be obtained by contacting a banking representative directly, as information about eligibility is not included on its website.

This lack of information is one of the general challenges of working alongside this lender, as Pawtucket’s website does not offer any specifics on down payment and credit score requirements for its home loan products.

According to FICO, the industry-standard credit score stands at 740, though most lenders will accept applications from borrowers with scores as low as 675. The qualification rules for FHA loans are set by the Federal Housing Administration, so homebuyers can expect a minimum down payment of 3.5 percent and a credit score requirement of 580+.

Pawtucket Credit Union’s website advertises no closing costs or junk fees in relation to its mortgage offerings, though several restrictions apply.

The “no closing cost” offer is not available for QuickPay or jumbo 30-year fixed-rate loans and does not include fees associated with prepaid interest, initial escrow deposits, or private mortgage insurance. To qualify, the loan term must be set at a minimum of 15 years and borrowers must be first-time homebuyers.

For more information, Pawtucket requests members to contact a banking representative directly by phone or by filling out its online application form.

Pawtucket Credit Union Number & Additional Details

• Homepage URL: https://www.pcu.org/
• Company Phone: 1-401-722-2212
• Headquarters Address: 1200 Central Avenue, Pawtucket, RI, 02861

The Bottom Line – Pawtucket Credit Union Mortgage Review

Pawtucket Credit Union, established in 1926 and currently the largest credit union in Rhode Island, has a long history of providing banking services and a diverse range of mortgage products to its members in Rhode Island and some parts of Massachusetts. With assets totaling $2.26 billion, this lender offers conventional fixed-rate and adjustable-rate loans, FHA mortgages, jumbo loans, and unique options like QuickPay and Smart Option loans.

While Pawtucket Credit Union provides a personalized banking experience and various online resources, including calculators and a pre-qualification process, there are challenges such as limited information on qualification requirements and a one-star customer rating on the BBB. Membership in the credit union is required to apply for a mortgage, and eligibility details are not prominently featured on the website.

Homebuyers considering Pawtucket Credit Union should reach out to a banking representative for specific information and thoroughly research their options.

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