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 a number of 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 a number of 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.
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 own 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.
In contrast to a fixed-rate mortgage, this option features a variable rate that will fluctuate in response to changes in the 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 future 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.
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.
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.
This specialty mortgage program was created for borrowers who want to pay off their home loans quickly and who are able to 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.
To qualify, borrowers must have a minimum credit score of 675 and the loan amount must not exceed $1,500,000. The option is also available for members of the credit union looking to refinance an existing mortgage.
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.
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 a number of useful resources, including an extensive FAQ page, a “quick quote” tool for mortgages and a number of the 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