Have you visited a credit union lately? Well, now might be the time because credit unions have the money. Credit unions didn't need help from the government bailout and they didn't need any help during the depression of the 1930's. In fact, credit unions might be the best place to get a home loan these days. Credit unions have mostly avoided writing subprime home loans and other mortgages and are thus virtually unaffected by the recent credit freeze. What does this mean in a nutshell? They have money to lend to borrowers. Credit unions are member-owned and are well-prepared for this time when banks are closing and cash is drying up. Additionally, these institutions' mortgage production rose by 10% in the first half of 2008 when most major banks experienced a drop close to 17% during the same time period.
Since credit unions have the money, you can apply for a loan, but you will only get the loan the old fashioned way: you have to be truly credit-worthy. Gone are the days of stated only income and no credit checks. Furthermore, credit unions will only let you borrow what you can truly afford. Perhaps this stringent set of conditions is why they are able to outfit borrowers with the appropriate opportunities: slow and steady wins the race!
Credit unions are in business to make money, but not profits. They are member-supported with individuals who pool their money by taking in deposits and, in turn, using the money to make loans. However, they are non-profit businesses and therefore have kept out of harm's way during the mortgage meltdown. The interest is returned to members in the form of interest-bearing checking and savings accounts as well as CD's with rates often better the conventional banks. Furthermore, the deposited money in a credit union account is federally-insured by the NCUA (National Credit Union Association) up to $250,000 per account.
So, check out a credit union near you and you may find yourself in a home before you know it.