# Credit Union Loan



## charlie MacZ (3 Jul 2008)

Hello All,

Just opened an a/c with my local credit union. I have instructed my company to take 800 out of my monthly salary and put it into my cu ac. Within 6 months I hope to have saved enough up so i can get a loan from them of about 25000 for a deposit on a new apt. When I go looking for  mortgage approval can the banks find out that i have a loan of 25000?

thanks.


----------



## rmelly (3 Jul 2008)

Depends which Credit Union it is - some are members of ICB: [broken link removed]

Not declaring it if asked is not a good idea though.


----------



## charlie MacZ (3 Jul 2008)

Well, I just found out that they are in the ICB list, thanks for that rmelly. If i'd known that i would not have opened an account with them. Back to the drawing board


----------



## MortgageGuy (3 Jul 2008)

Even if they are not listed with the ICB it's easily discerned. When you apply for a loan one of the first things a lender looks for is copies of your bank accounts and payslips, if they see deductions on either they will ask for statements (up to date statements) of the credit union. If you are saying you have a 25k deposit they'll want to see that and also where it came from. if you can't show them the money you can't prove the deposit and if you can then they will see its borrowed on the up to date statements.


----------



## fredg (3 Jul 2008)

is there a rush to get the house???
i'd love to be able to put 800e aside every month,
in two years you'd have that deposit without any loan.
best of luck.f


----------



## rmelly (3 Jul 2008)

MortgageGuy, exactly, I was going to add pretty much the same but didn't once the OP realised it was a non runner. However, if not ICB member, if she waited a few months after the last lodgment she may have been able to spoof them, but not advisable...


----------



## charlie MacZ (4 Jul 2008)

Well if i join a CU that is not on the list and deposit funds by going into the CU myself and if the bank asks where i got it i could say i got it from a family member how are they to know where i got it from. I want to get a place for myself this year i do not want to wait 2 more years i'm sick of paying another landlords mortgage!


----------



## Complainer (4 Jul 2008)

charlie MacZ said:


> Well if i join a CU that is not on the list and deposit funds by going into the CU myself and if the bank asks where i got it i could say i got it from a family member how are they to know where i got it from. I want to get a place for myself this year i do not want to wait 2 more years i'm sick of paying another landlords mortgage!


Have you really thought this through? Do you understand why the banks test your ability to repay before approving a mortgage?


----------



## sullyman (6 Jul 2008)

I would do this and have done this with my CU. Save as much as you can by depositing the money direct yourself to the CU. Do not have any direct debit payments from your bank to your CU as the bank will look for statements.

Get the loan and then say it is from a family member. Best of luck. Try and save as much as you can though first so you are not totally under each month paying both Mortgate repayments and CU repayments.


----------



## sullyman (6 Jul 2008)

P.S. I also bought an apartment at that time doing the above. Looking back i would not advise you buying an apartment if possible as it was much harder to offload and sell the apartment when i wanted to ditch it. Plus you also have to pay annual management fees etc.

Try and look for a house if at all possible. Easier to sell than an apartment. Perhaps you could rent out a room or two to assist you then also.


----------



## rmelly (6 Jul 2008)

Sullyman, so you'd recommend this course of action in the current climate, effectively meaning the OP will be in negative equity from day one, as well as having possibly crippling debts? You have no idea of what levels of debt she can service without income figures etc.

Why do you think 100% mortgages have all but disappeared?


----------



## LDFerguson (7 Jul 2008)

charlie MacZ said:


> Well if i join a CU that is not on the list and deposit funds by going into the CU myself and if the bank asks where i got it i could say i got it from a family member how are they to know where i got it from. I want to get a place for myself this year i do not want to wait 2 more years i'm sick of paying another landlords mortgage!


 
I'd be prepared to bet that the combined repayments on a mortgage and Credit Union loan would be a LOT more than the rent you're paying.  

What happens if interest rates on both loans rise and the value of the property falls?


----------



## idkwatmi (7 Jul 2008)

I could be wrong but i dont think most CU's would give you €25,000 for your first loan anyway. i think normally for the first loan it is twice your savings


----------



## steph1 (7 Jul 2008)

idkwatmi said:


> I could be wrong but i dont think most CU's would give you €25,000 for your first loan anyway. i think normally for the first loan it is twice your savings



And in some credit unions your first loan is a loan within shares i.e. if you have 1000 euro in shares you will only get 1000 euro for your first loan.  Its to see how good you are at paying back the loan before you can be considered for a larger loan.


----------



## And76 (8 Jul 2008)

Yes generally credit unions only give twice yoru savings for your first loan. You are mad to buy an apartment though a house will be alot easier to sell on and who knows how long this recession will last!


----------



## Cabaiste (8 Jul 2008)

charlie MacZ said:


> Well if i join a CU that is not on the list


 
You can't just join any credit union willy nilly, you have to be living or working within the common bond of that credit union!

Also, with regards borrowing from them, the main things credit unions will look for is history with them ie savings history and previous loans from them. The other important factor they look at (although you will never see this written in any policy) is who you are. If you are not well known to those on the credit committee and you have a limited history I would say you stand little or no chance of getting a €25k loan from them!


----------

