CU Mortgage Direct

Dated: 01/10/2018

Views: 419

Keys to a new home

Located within Sioux Empire Federal Credit Union in Southwest Sioux Falls, CU Mortgage Direct is a local mortgage banking company that focuses on personal touches in the loan process.  I recently had the opportunity to meet with Dave Bednar, Chief Operating Officer of CU Mortgage Direct to discuss the local market, his business, and what CU Mortgage Direct has to offer. 

How long has CU Mortgage Direct been in business?

CU Mortgage Direct opened its doors in January of 2004. They currently have 2 locations in Sioux Falls, one on west 57th and a second location on Sycamore & 49th.  They also have 2 locations outside of Sioux Falls in Madison and Watertown. Although CU Mortgage is located inside Sioux Empire Federal Credit Union, customers do not have to be members of the credit union to use CU Mortgage Direct's services. 

What are the benefits of using CU Mortgage Direct vs. a large chain bank?

A major benefit of CU Mortgage Direct is that all loan processes are done in-house and locally.  This means if an underwriter or loan processor has a question, they are able to walk down the hall and speak directly with the mortgage originator on the loan to clarify any issues.  Other large institutions may have to call out of state or send emails and wait days for a reply.  Having all processes under one roof allows for quicker turn around on loan documents which leads to more satisfied customers.  CU Mortgage Direct also offers in home loan payments to be made to them in Sioux Falls, as many of their loans do not get sold to out of state lenders.  

What programs are hot right now that CU Mortgage Direct is helping clients take advantage of?

Of course, South Dakota Housing First Time Home Buyer program is popular.  Many buyers use this program every year and it continues to be a popular avenue for younger buyers with limited funds for a down payment. 

Another helpful program is HomeReady by Fannie Mae.   This program is available to folks with moderate or low income, a credit score of 620 or higher, and have limited cash available for purchasing a home.  It is similar in qualifications as the FHA program but has a few additional perks, including the ability to cancel the mortgage insurance once the loan is paid down by 20%, allowing for a lower monthly payment. Also, with HomeReady, higher credit scores may allow for better loan terms and rates! 

Grants for Grads is a fairly new program that hasn't gained popularity yet but is worth a mention.  SDHDA has recently announced this new program that provides up to 5% of the purchase price to the buyer to be used for closing costs and/or down payment assistance.  Recipients eligible must have graduated from a post secondary school in the past 60 months. 

*Click the links to learn more about all eligibility requirements for these programs or visit with Dave. 

Where do you see rates going in 2018?

The rates for January 2018 have already reached what they were in March of 2017, meaning we started off 2018 higher than we were the year previous. Of course there will always be flucuations but even SDHDA rates are higher as well.  Dave thinks that rates could be headed slightly higher from their current rate but we shouldn't see too much of an increase that would be so much as to put loan volume at a stand still. 

Lastly, what advice would you give to first time home buyers starting the buying process?

Education is high on the list!  Home buyers are getting better and better at learning what is involved in the process and what steps need to be taken ahead of time.  Preparation can sometimes take months when credit scores need improving or the buyer has started a new job.  Once all credit issues or other items have been cleared, fill out the mortgage application and get pre-qualified.  With a pre-qualification letter in hand, go find the home for you! 

Your Dream Home

For any question on the above items or to apply with Dave at CU Mortgage Direct, contact him directly! 

Dave Bednar

[email protected]


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Amy Hendrix

After years of working in retail I have chosen the field of real estate to help stimulate my personal growth. I want to be involved, valued, and trusted by my clients and I want to do what is best for....

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