Conventional loan APR: Credit union vs traditional bank

[Ethan McRae]

I'm a first-time home buyer interested in house hacking. I'm interested in getting a conventional loan and considering using a credit union. 

With rates as they currently are, I'm looking for every angle to get the lowest rate possible, and from what I understand, credit unions can offer rates slightly lower than traditional banks. 

Curious to hear about investors' experience with credit unions. Have you secured considerably lower mortgage rates with credit unions compared to traditional bank rates? How would you go about looking into credit unions? Is there an efficient way to compare APRs between credit unions?

Many thanks

[Dustin Tucker]

Hello Ethan,

I think the main difference between traditional banks and credit unions are their guidelines, most credit unions are manual underwriting, because they are using their own money and keeping the loans.  Your traditional bank in most instances is going to take the loan and resell it on the secondary market.

For House Hacking, my favorite concept is  purchasing a duplex, triplex or quadplex, you accomplish 2 things in 1 step, you get a roof over your head, and at a minimum you get someone else to help pay for your mortgage, and when its time to move out, you already have your 1st investment property under your belt.