Just as homeowners may be challenged to come up with a down payment, renters may find it difficult to save for first, last and security/cleaning/pet deposits, especially if they are recent graduates or relocating to the Seattle area from less expensive markets.
To assist these consumer segments, Seattle Credit Union is expanding its real estate related products by offering a Renter’s Loan. Credit union officials say it was conceived in response to feedback from members and community partners, along with brainstorming with some of the organization’s managers.
The Renter Loan can start as low as $250, but the typical amount is around $3,000. Similarly, interest rates vary depending on the applicant’s credit score and history. Rates are generally lower than options from other financial institutions, credit card providers, and various other types of loans.
The credit union touts the flexibility of the Renter Loan, inviting borrowers to “use the funds how you like – to cover moving costs, get into a larger place or upgrade furniture. It beats putting the balance on a high-interest credit card when all you need is a little boost to make your move. We call it: What You Need When You Need It.”
For those who prefer a path to homeownership, Seattle Credit Union has a 1% down mortgage to assist with the purchase of their first home, a 3% down “Home Possible” loan for those with lower incomes, and a Home One Mortgage without an income cap.
Seattle Credit Union was formed in 1933 by seven city of Seattle workers who banded together to lend each other, and their co-workers a hand. Since its inception, it has grown into an $860 million, full-service financial institution with more than 50,000 member-owners. Membership is open to “anyone in Washington.”