Alliant Credit Union mortgage review: Online lender with low down payment options

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Pros and cons

Alliant Credit Union mortgage interest rates and fees

The Alliant website lets you easily customize rates to your situation by scrolling down on its main mortgage page and clicking "Get your customized rates." You'll need to fill in some basic information about how much you plan to borrow, where the home you're purchasing or refinancing is located, and what range your credit score is in.

Alliant Credit Union charges an origination fee on its mortgages, and exactly how much you'll pay will depend on the type of mortgage you get. Fixed-rate mortgages come with a $1,795 origination fee, while the fee for adjustable-rate mortgages is only $995. According to Alliant's site, the origination fee can go up to $1,930.

Alliant Credit Union vs. Connexus Credit Union mortgages

*Alternative forms of credit are only allowed on ARMs for borrowers with limited credit histories.

Alliant and Connexus are both credit unions with similar offerings, but there are a few key differences between these lenders that may make one a better choice than the other, depending on your needs.

Alliant Credit Union's most attractive mortgage offering is its Alliant Advantage Mortgage program, which allows first-time homebuyers to purchase a home with zero down and no private mortgage insurance (PMI). Repeat buyers can also get a PMI-free mortgage with 5% down.

By contrast, the lowest down payment you can make on a Connexus Credit Union mortgage is 3%, and you'll need to pay PMI on down payments below 20%. Alliant borrowers who don't qualify for the Alliant Advantage Mortgage program can also get a mortgage with 3% down, with PMI.

Connexus may be a better option for borrowers with limited credit histories. While this lender doesn't accept alternative credit data for those who have no credit or bad credit, it may consider alternative data from those with thin credit files. However, it can only do this for its adjustable-rate mortgages. 

Alliant Credit Union vs. Ally mortgages

Ally is a completely online bank that offers conforming and jumbo mortgages that require as little as 3% down. For buyers who want to put down less than that, or those looking to avoid PMI on down payments below 20%, Alliant's Alliant Advantage Mortgage will likely be the better option, provided your credit is strong enough to qualify for it.

When it comes to fees, Ally is the clear winner, with no lending fees. However, there are a handful of states that Ally doesn't do mortgages in, while Alliant offers mortgages in all 50 states, with one small exception: It doesn't do fixed-rate mortgages in Maryland. (ARMs are available in every state.)

How Alliant Credit Union mortgages work

Alliant's mortgage application is completed online and over the phone. Borrowers can get a mortgage from Alliant in all 50 states, but can't get a fixed-rate mortgage in Maryland. Alliant Advantage Mortgages aren't available in Florida or Nevada. 

Alliant Credit Union offers conforming and jumbo mortgages for both purchase and refinance transactions. It also has a low down payment option for what it deems "well-qualified homebuyers," called the Alliant Advantage Mortgage program. These mortgages allow first-time homebuyers to purchase a home up to $500,000 with 0% down and no PMI. Repeat buyers can purchase a home up to $650,000 with 5% down (or refinance with just 5% equity) and no PMI.

For its traditional mortgage offerings, borrowers can potentially put down as little as 3% with PMI.

Alliant charges an origination fee that ranges from $995 to $1,930. Borrowers generally need a credit score of at least 640 to get a mortgage with this lender. Since Alliant is a credit union, you'll need to become a member prior to your mortgage closing. However, you don't need to be a member to apply for a mortgage.

To become an Alliant Credit Union member, you'll need to meet one of these criteria:

• Be an employee of one of the businesses or organizations Alliant partners with
• Be a domestic partner or immediate family member of a current member
• Live or work in one of the eligible communities near the credit union's Chicago headquarters
• Be a member of Foster Care to Success (Alliant will pay your $5 membership fee)

If you have questions, you can email Alliant or call its customer service line between 8 a.m. to 6 p.m. CT Monday through Friday and 8 a.m. to 2 p.m. CT on Saturday. 

Is Alliant Credit Union trustworthy?

Alliant Credit Union has an A+ from the Better Business Bureau. A business' BBB grade is based on its honesty in advertising, transparency about its business practices, and effectiveness in responding to customer complaints. Alliant also has strong customer reviews on its Zillow lender profile, and doesn't have any recent public scandals.

Alliant Credit Union mortgage FAQ

What credit score is needed for Alliant Credit Union mortgages?

Alliant Credit Union typically requires mortgage borrowers to have a credit score of at least 640.

Are credit unions safe for mortgages?

Yes, as long as you're working with a reputable organization, credit unions are as safe as other mortgage lending options.

Is Alliant legit?

Yes, Alliant Credit Union is a legitimate credit union that's been around since 1935. According to its site, Alliant has more than 600,000 members. Alliant's deposit accounts, including savings and checking accounts, are federally insured by the National Credit Union Administration.