Teacher’s Federal Credit Union (TFCU) was founded in 1952 and is headquartered in Hauppauge, New York.
It has more than 450,000 members and $8.8 billion in assets and offers a variety of mortgage and home equity options.
In this review, we will cover everything you need to know before purchasing a mortgage loan through TFCU.
Table of Contents
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 33 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 more than 65 years and, with more than $8.8 billion in assets, is one of the largest credit unions in the nation. It serves more than 450,000 members and has 33 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.
This credit union has fairly straightforward mortgage requirements, with a general minimum credit score of 620, a down payment of 3 percent, and a 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 $970,801 to $5,000,000. 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 $970,801 to $5,000,000. There are fixed-rate and adjustable-rate options. Fixed-rate jumbo mortgages can have terms of between 15 and 30 years; adjustable-rate jumbo mortgages all have 30-year terms and can have 5/6, 7/6, and 10/6 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 10-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.
Teacher’s Federal Credit Union Loan Options
| Loan Type | Description |
|---|---|
| Fixed Rate Mortgage | Fixed-rate mortgage With Terms of 10 to 30 years for New Purchases or Refinancing |
| Adjustable Rate Mortgage | Flexible, Adjustable-rate Mortgages with 5/1, 7/1, and 10/1 Terms for 30 Years |
| Jumbo Mortgage | For Loans Between $970,801 and $5,000,000, Offering Fixed or Adjustable Terms for New Purchases or Refinancing |
| Second Home Financing | Financing for Second Homes with Fixed or Adjustable Terms |
| HomeReady Mortgage | A 30-Year Fixed-rate Mortgage Requiring a Homebuyer Education Class |
| Coop Mortgage | Mortgages for Purchasing Cooperative Housing, With Fixed or Adjustable Terms |
| Condominium Mortgage | Options for Condos, Including Fixed or Adjustable Terms, Rate Locks, and Point Reductions |
| No Closing Cost Mortgage | Mortgage Options with No Closing Costs for New Purchases or Refinancing |
| HELOC | Home Equity Line of Credit for Amounts Between $10,000 and $500,000, with a 15-Year Draw Period |
| Interest-Only HELOC | Interest-Only Payments for the Initial 10-Year Draw Period, Followed by a 15-Year Repayment Period, No Closing Costs |
| Mini Fixed Equity Loan | Access to Home Equity for Shorter Terms With Amounts Up to $500,000, Depending on Term Length |
| Mini Fixed First Lien Position Equity Loan | No Closing Cost Loans With Options for $10,000 to $500,000, Best for Properties Without Existing Liens |
| Mini Adjustable Equity Loan | Adjustable-Rate Loan Starting at 120 Months for Accessing Home Equity |
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.
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
The Bottom Line
Teacher’s Federal Credit Union (TFCU), with over six decades of experience, stands as one of the most substantial credit unions in the country by asset size. Offering a wide range of mortgage and home equity options tailored to different property types and buyer needs, TFCU caters to a significant membership base across select states. Their diverse products, from standard fixed and adjustable-rate mortgages to unique offerings like mini home equity loans, present an array of options for prospective borrowers.
While the credit union does have a noteworthy reach and established history, potential customers, its transparent qualifications, user-friendly online resources, and efficient application process are commendable features. As with any significant financial decision, potential borrowers should weigh TFCU’s offerings against their needs and consult various sources before securing a mortgage.
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.
Product Name: Teachers Federal Credit Union Product Description: Teachers Federal Credit Union (TFCU) is a longstanding credit institution founded in 1952, headquartered in Hauppauge, New York. With over $8.8 billion in assets and catering to more than 450,000 members, TFCU offers a wide range of mortgage and home equity options to its clientele. Summary of Teachers Federal Credit Union Established for over six decades, Teachers Federal Credit Union (TFCU) is one of the 20 largest credit unions in the U.S. by asset size. As part of the CO-OP Shared Branch network, it boasts 33 branches, primarily situated across Long Island, Queens, and Manhattan. Serving a vast membership, TFCU provides tailored financing options for properties located in New York, the Carolinas, and Florida. Their diverse financial products range from conventional fixed and adjustable-rate mortgages to unique offerings such as mini home equity loans and no-closing cost mortgage options. Pros Cons
Teachers Federal Credit Union Review
Overall
