State Employees Federal Credit Union (SEFCU) was founded in 1934.
Headquartered in Albany, New York, SEFCU is committed to serving members throughout the Capital Region and Upstate New York through its personal and business banking, loans and lines of credit, insurance, and investing products. It has an A- BBB Rating.
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SEFCU History
SEFCU has been in operation for 84 years and is one of the 50 largest credit unions in the U.S. As a credit union, SEFCU rewards its members by offering reduced fees, 47 convenient branch locations, and access to capital in historically underserved communities.
Eligibility requirements follow conventional credit union qualifications, such as residency in New York counties, employment/volunteerism at approved locations/associations, or familial relationship with a current SEFCU member, among others.
In November 2018, SEFCU made headlines for donating funds to 52 recently laid-off employees of the Cohoes Community Center in New York.
The community center abruptly closed due to the inability to cover its ongoing debts, leaving a week’s worth of paychecks up in the air for its workers. SEFCU stepped in to cover the cost of these final-week paychecks, earning praise from the local community.
As a continually expanding financial institution, SEFCU adds more products, services, and locations each year, building upon its loan options and customer service standards.
Its mortgage qualifications and rates are featured on its website, making it easy for prospective homebuyers to begin their home-owning journey.
SEFCU Mortgage Facts
- Has 50 branches throughout the Capital Region (New York) and more than 350,000 members
- Offers online prequalification and application and allows borrowers to check the status of their home loans online
- Provides a mortgage calculator, a glossary of common mortgage terms, and a printable mortgage checklist
- Has a Financial Education Center that provides personalized financial coaching, a learning library, and various seminars and workshops
- Extends 13 types of home loans to suit the needs of prospective and current homebuyers
- Offers three types of home equity loans or lines of credit
Current SEFCU Mortgage Rates
SEFCU Mortgage Loans
SEFCU categorizes its mortgage loan products as 13 distinct offerings and three additional HELOC products.
These home loans and lines of credit resemble the types of mortgage products provided by similar institutions, broadly falling under the umbrellas of fixed-rate, adjustable-rate, hybrid, construction, FHA, refinance, reverse, VA, USDA, and SONYMA mortgages.
This breadth of services makes SEFCU a viable lender for borrowers of all kinds, regardless of their mortgage needs and qualifications.
While these loans are available only to members, the fact that SEFCU has more than 350,000 members speaks to the general scope and satisfaction of its customer base.
The mortgage loans available to SEFCU members include:
6-Month Rate Lock
In a rising-rate environment, locking in a mortgage rate for the first six months of the loan can equate to hundreds of dollars saved right out of the gate.
The 6-month rate lock mortgage is for borrowers who are building their own homes and require a construction loan. After six months, the loan converts into a 5/1 or 10/1 ARM, or a 10-, 12-, or 15-year fixed-rate mortgage.
270-Day Rate Lock
Similarly, the 270-day rate lock loan from SEFCU grants borrowers up to nine months of lower mortgage payments during the construction process.
Having a lower, expected mortgage payment early in the construction phase enables borrowers to budget more effectively. Once the 270-day period expires, loans convert to 5/1 or 10/1 ARMs.
15-Year Fixed-Rate Mortgage
A loan amortized over a 15-year period with a fixed interest rate affords borrowers a consistent monthly payment schedule and the ability to pay off the loan twice as fast as a 30-year mortgage.
Because a 15-year fixed-rate mortgage term results in higher monthly payments, this loan may be better suited for borrowers who can make larger down payments and already have income levels high enough to meet these terms.
30-Year Fixed-Rate Mortgage
A 30-year fixed-rate mortgage is the most popular home loan type and is often advertised for borrowers who expect to remain in the same home for seven years or more.
Locking at a low-interest rate for 30 years can help homeowners save tens of thousands of dollars over the life of the loan.
Adjustable-Rate Mortgage
Borrowers who aren’t certain whether they will keep the same home for seven or more years may opt for an adjustable-rate mortgage (ARM) because payments are often lower early on.
SEFCU allows borrowers to lock in low mortgage rates for one, three, five, or 10 years, after which rates adjust annually. Rates typically do not rise more than 5% each year, however.
Hybrid ARM
Hybrid mortgage loans incorporate the benefits of both types of traditional mortgages (fixed and adjustable).
Available in 3/1, 5/1/, and 10/1 terms, a hybrid ARM provides a lower, fixed interest rate for three, five, or 10 years, then converts into an adjustable-rate loan.
SEFCU notes that this type of arrangement is best suited for homeowners who expect to move or refinance when the mortgage adjusts.
Home Possible
First-time homebuyers or those unable to meet traditional mortgage criteria may find the Home Possible mortgage beneficial. Structured similarly to an FHA loan, mortgage insurance premiums are required upfront.
However, those premiums are removed once borrowers attain a 78% loan-to-value ratio (they effectively own 22% of their home and still have 78% of the mortgage left to pay). Down payment options as low as 3% are available.
FHA
Carrying minimal down payments and qualifying criteria, FHA loans are insured by the Federal Housing Administration.
These loans can have either fixed or adjustable rates and loan duration of 10, 20, 25, or 30 years. In exchange for easier access to home loans, borrowers must pay mortgage insurance (MIP).
USDA
The United States Department of Agriculture provides borrowers with the opportunity to purchase homes in rural areas with no money down and low, fixed-rate terms.
USDA loans are available to consumers whose income limits are within 115% of the range the USDA sets each year, with national limits being $110,650 for households with one to four members. In New York, limits range from $110,650 – $146,050.
VA
Qualified veterans, reservists, active-duty service members, and eligible family members can receive fixed- and adjustable-rate VA loans through the Veterans Administration with 0% down. Borrowers can fill out a VA Certificate of Eligibility to determine whether they qualify.
Refinancing
Existing homeowners can apply for refinancing for a number of reasons. A mortgage refinance loan can lead to long-term savings for borrowers by allowing them to access the equity in their homes.
Reverse
Qualifying homeowners 62 years and older can receive tax-free cash payouts and lines of credit from the equity in their homes while not being required to make monthly mortgage payments. This option is usually best for those needing an additional cash flow in their retirement.
SONYMA
The State of New York Mortgage Agency offers low-interest, fixed-rate loans with down payment assistance to first-time homebuyers and veterans. This program allows lower-income consumers the chance to purchase homes without meeting standard qualifications.
SEFCU Mortgage Loan Options
| Mortgage Loan Type | Description |
|---|---|
| SEFCU Mortgage Loans | Offers Various Mortgage Options, Including Fixed and Adjustable-Rate Loans |
| 6-Month Rate Lock | Ideal for Home Builders With a 6-Month Rate Lock Before Converting to Other Options |
| 270-Day Rate Lock | For Construction Projects, Provides 270 Days of Lower Payments, Followed by an Arm |
| 15-Year Fixed-Rate Mortgage | Consistent 15-Year Payments, Suitable for Higher-Income Borrowers |
| 30-Year Fixed-Rate Mortgage | Popular Choice for Long-Term Homeowners With Rate Stability |
| Adjustable-Rate Mortgage (ARM) | Flexible Rates After an Initial Fixed Period |
| Hybrid ARM | Blends Fixed and Adjustable Rates, Great for Those Planning to Move or Refinance |
| Home Possible | Supports First-Time Buyers With Low Down Payments and Removal of Mortgage Insurance Premiums |
| FHA | Accessible Loans With Minimal Down Payments, Insured by the Federal Housing Administration |
| USDA | No-Money-Down, Low-Rate Loans for Rural Homebuyers Meeting Income Limits |
| VA | 0% Down VA Loans for Veterans With Flexible Rate Options |
| Refinancing | Allows Homeowners to Refinance for Long-Term Savings and Access Home Equity |
| Reverse | Provides Tax-Free Cash for Homeowners Aged 62 and Older, With No Monthly Payments |
| SONYMA | Offers Low-Interest, Fixed-Rate Loans With Down Payment Assistance to Lower-Income Buyers in New York |
SEFCU Online Experience
The SEFCU website is home to a number of resources that aid borrowers in their pursuit of homeownership, including calculators for tax savings, refinancing, APR, rent vs. own, payment/amortization, and debt consolidation, among others.
Applying for a Loan
SEFCU also provides an easy reference guide for consumers wanting to know the type of information required to begin the loan process.
To apply online, over the phone, or in person, be prepared to provide the following:
- Social Security number
- Current pay stubs from the past two years
- Investment, retirement, and banking statements from the past two months
- Auto and auto loan information
- Credit card and personal loan information
SEFCU members can complete their loan applications and or request prequalification online through the company’s website. The organization’s process is transparent, with fees, payment schedules, and current mortgage rates provided from the start.
While SEFCU does not appear in the annual J.D. Power Primary Mortgage Originator rankings nor the Consumer Financial Protection Bureau’s monthly complaint report, it does consistently receive 4.5/5 star ratings at its flagship locations on Yelp.
SEFCU Lender Grades
With an A- rating from the Better Business Bureau, SEFCU is widely recognized for its reputation for member services and convenience.
Since 2015, 27 complaints have been filed against SEFCU, with one-third pertaining to “billings/collections” issues
. According to the BBB, however, those complaints have either been “answered” or “resolved.”
SEFCU is one of the largest and longest-operating credit unions in the country and has a number of noteworthy accreditations, including:
- Federally insured by the National Credit Union Administration (NCAU)
- An equal housing opportunity lender
- An approved FHA, USDA, and VA lender
- NMLS ID 490518
SEFCU Lender Qualifications
While SEFCU is known for its loan diversity, the following mortgage rates and loan information are publicly available as baseline metrics. Additional guidelines for other loan types are available through appointment.
| Mortgage type | Down payment requirement | Down payment assistance programs available? | Median income or debt-to-income requirements | Mortgage rate |
|---|---|---|---|---|
| 30-year fixed-rate | 0-20% | Yes | NA | 0.04875 |
| 20-year fixed-rate | 0-20% | Yes | NA | 0.0475 |
| 15-year fixed-rate | 0-20% | Yes | NA | 0.0425 |
| 30-year fixed-rate FHA | <3.5% | Yes | NA | 0.04875 |
| 10/1 ARM | 0-20% | Yes | NA | 0.04125 |
| 5/1 ARM | 0-20% | Yes | NA | 0.04 |
| USDA | 0 | Yes | $82,700 - 125,950 | >4% |
SEFCU doesn’t solely use minimum credit score requirements (typically 700+) to dictate loan eligibility but looks into the borrower’s credit history as a whole. SEFCU also provides links to free credit reports online so borrowers can see where they may be able to improve.
Because each borrower has unique financial circumstances and each lender follows varying loan criteria, generalized guidelines may offer practical benchmarks as to whether someone is likely to qualify for a given loan.
However, these guidelines may not wholly represent the entirety of the mortgage negotiation nor the fine print that is customary in the home loan process.
As such, borrowers are always encouraged to speak with lenders, real estate agents, and financial advisors to ascertain their options.
Traditionally, fixed- and adjustable-rate mortgages require down payments in the 20% range, although down payment assistance programs such as VA, USDA, FHA, or SEFCU’s Mortgage Match can reduce monthly mortgage obligations as well as interest rates.
Rural and veteran homebuyers often benefit from greater loan criteria flexibility, as lenders are comfortable with loosening certain requirements.
Bottom Line: SEFCU Mortgage Review
SEFCU, one of the 50 largest credit unions in the U.S., offers a diverse mortgage portfolio tailored to a variety of borrowers.
With over 84 years in operation, their services range from fixed-rate mortgages to specialized offerings like SONYMA and USDA loans.
A notable emphasis on community and member service is evident, with their commitment extending beyond just banking, evidenced by gestures like aiding laid-off employees of Cohoes Community Center.
The online platform provides a wealth of resources and transparent loan processing, solidifying SEFCU’s reputation in the mortgage sector.
SEFCU Phone Number & Additional Details
- Homepage URL: https://www.sefcu.com/
- Company Phone: 800-727-3328
- Headquarters Address: 575 Broadway Albany, NY, 12207
How We Review Mortgage Lenders
Good Financial Cents evaluates U.S. mortgage lenders with a focus on loan offerings, customer service, and overall trustworthiness.
We strive to provide a balanced and detailed perspective for potential borrowers. We prioritize editorial transparency in all our reviews.
By obtaining data directly from lenders and carefully reviewing loan terms and conditions, we ensure a comprehensive assessment.
Our research, combined with real-world feedback, shapes our evaluation process. Lenders are then rated on various factors, culminating in a star rating from one to five.
For a deeper understanding of the criteria we use to rate mortgage lenders and our evaluation approach, please refer to our editorial guidelines and full disclaimer.
SEFCU Mortgage Services Review
Product Name: SEFCU Mortgage Services
Product Description: SEFCU Mortgage Services, a branch of the State Employees Federal Credit Union (SEFCU), offers tailored mortgage solutions for its members in the Capital Region and Upstate New York. With a deep-rooted history, SEFCU Mortgage Services combines member-centric offerings with a commitment to community enrichment. Their mortgage products range from fixed-rate and adjustable-rate mortgages to specialized offerings for veterans and rural homebuyers.
Summary of SEFCU Mortgage Services
Established in 1934, SEFCU has grown to be one of the 50 largest credit unions in the U.S., and its mortgage services reflect its expansive experience and member-first approach. SEFCU Mortgage Services, headquartered in Albany, New York, provides a comprehensive suite of mortgage solutions designed to cater to varying financial needs. Whether it’s a traditional fixed-rate mortgage, adjustable-rate loans, or specialized USDA and VA loans, SEFCU ensures that its members have access to the best possible home loan options. With an emphasis on both service and community, the credit union stands out by offering unique benefits, such as the Mortgage Match program, and emphasizing community support, as seen in their aid to laid-off employees of the Cohoes Community Center.
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Customer Service
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User Experience
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Product Offerings
Overall
Pros
- Diverse Mortgage Offerings: SEFCU provides a comprehensive range of mortgage solutions, catering to different needs and financial situations.
- Community Focus: The credit union’s efforts, like assisting local community members in times of need, showcase its commitment to the larger community.
- Member-Centric Approach: With benefits like the Mortgage Match program and a transparent online platform, SEFCU prioritizes its members’ best interests.
- Strong Historical Foundation: As one of the oldest and largest credit unions, SEFCU has a wealth of experience in serving its community.
Cons
- Geographical Limitations: Their primary focus on the Capital Region and Upstate New York might limit their reach to potential members outside these areas.
- Membership Requirement: Mortgage services are exclusive to SEFCU members, which can be a barrier for non-members interested in their mortgage products.
- Potential Overlook on National Ratings: SEFCU doesn’t regularly appear in national mortgage originator rankings, which might impact some potential members’ perception of its services.
