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RBFCU Mortgage: BiggerPockets Review

These companies are not responsible for any reviews posted on the website, nor do they endorse or guarantee any posted comments or reviews. Reviews should not be relied upon as the sole basis for choosing a financial product. Read our editorial guidelines for reviews.

RBFCU offers a robust package of in-house services for homebuyers, and their rates are some of the best around for both first-time buyers and seasoned investors. Their size and long standing military ties has made them one of Texas’s largest lenders.

Randolph-Brooks Federal Credit Union—or RBFCU—is one of the largest credit unions in America. Based in Live Oak, Texas, RBFCU serves nearly 900,000 members and employs more than 2,000. Initially established as a military credit union serving Randolph Air Force Base in San Antonio in 1952, RBFCU now serves residents outside of the military as well. The RBFCU of today is the result of a merger with Austin-based Central Texas Catholic Credit Union in 1995. 

Eligibility for RBFCU can involve one of thousands of religious, military, educational, commerce, or government organizations. To learn more about eligibility requirements and options, visit here
 
RBFCU is a leading mortgage lender in Texas. They offer traditional mortgages, jumbo loans, refinances, construction loans, and HELOCs, as well as auto loans, personal loans, and credit cards. Their interest rates and APYs are below market averages across most real estate product categories. 

Subsidiary RBFCU Services LLC employs in-house real estate brokerage, title insurance and escrow, and property appraisal and is licensed in most Texas counties. Like other credit unions, RBFCU is non-profit, owned by its depositing members and governed by a volunteer Board of Directors chosen from among its members.


Quick facts

  • RBFCU is the 11th-largest credit union in the United States as of 2019, with over $9.5 billion in assets.
  • In addition to services for homebuyers, RBFCU members who are selling a home can receive cash back for to 10 percent of agent commissions when using preferred real estate vendor Kuper Sotheby's International Realty.
  • Randolph-Brooks has been consistently ranked as one of the Top 5 Places to Work in San Antonio.

CURRENT INTEREST RATES
RBFCU’s marketed rates are below national and regional averages for fixed-rate loans, refinancings, jumbo loans, and home equity loans (versus Bankrate.com prevailing national averages on March 20).





Pros

  • Some of the lowest rates in town, with a 5/5 ARM. This 30-year loan offers a unique 60-month reset term.
  • Many ways to join, with options for military members, teachers and students, church members, and community volunteers.
  • In-house partners offer turnkey services for rental property investors who are new to the area.
  • Members can pay discount points to lower their interest rate.


Cons

  • Mortgage loans can only be done on property that resides in Texas.
  • Cash-out refinances for owner-occupied properties have different rules in Texas. They are known as Texas Section 50 (a)(6) mortgage loans. Speak to a local branch lender to understand the unique cash-out and loan-to-value (LTV) limitations as they relate to your position.
  • Won’t issue mortgages to certain Series LLCs for investment property, although a buyer can transfer an investment property into LLC after the purchase is made.
  • FHA, VA, and USDA-backed loans are not eligible for 50 (a)(6) refinancing in Texas.


RBFCU mortgage products

RBFCU offers a full suite of mortgage products for first-time homebuyers and real estate investors: 

  • Conventional fixed-rate mortgages with terms of between seven and 30 years.
  • Jumbo fixed-rate mortgages with 15-, 20-, or 30-year terms.
  • FHA and VA loans. 
  • ARM 5/5 30-year loan, where the interest rate is fixed for the first five years and rates adjust every 60 months thereafter with a three percent maximum hike per period. The interest rate is capped at the initial rate plus five percent.
  • Refinancing with five-, eight-, or 11-year terms for primary or secondary residence. (Five percent minimum equity required.)
  • Investment property refinancing with seven-, 10-, and 15-year terms, with 20 percent minimum equity.
  • Home improvement loans with four-, seven-, 10-, and 15-year terms, offering between 90 and 100 percent loan-to-value ratios.

RBFCU and real estate investors

RBFCU offers favorable treatment, terms, and discounts to members who use multiple real estate services with the bank. All home loans—excluding FHA and VA loans and loans with terms under five years—have no origination fee for member customers. And for customers who also utilize in-house title or appraisal services, non-FHA loan customers can get 10 percent of the broker’s commission back in cash, up to $10,000.

RBFCU Insurance Agency offers homeowner’s insurance as well as rental property insurance, flood insurance, comprehensive personal liability, and renter’s insurance. 

Preserve Title, a division of RBFCU Services LLC and RBFCU’s preferred title company, offers flat settlement fees, and they don’t scale other title expenses based on loan size. This is a big plus for property entrepreneurs scaling up their business. 

BiggerPockets Member Brent Washam from San Antonio, Texas, notes: he has “used them repeatedly for 15-year investment property loans. They were generally the best rates in town.” And BiggerPockets member Joe Scaparra from Austin, Texas, has been a customer for over 40 years.

“I have a HELOC with them right now. I have had it probably for 3 years now. I love it, and RBFCU,” says Scaparra. “Been banking with them since 1977. The HELOC is awesome and if you keep it under 125k the underwriting is free at least that was what it was when I got it established. It should only take a few days to set up, I would recommend them as a first choice option.”


RBFCU application process

RBFCU will only issue home loans to credit union members buying property located in the state of Texas. While an in-house real estate agent group, Kuper Sotheby's International Realty, can be utilized to obtain discounts on closing costs (and potential cash-back on commissions), the homebuyer can employ their own agent as well. 

In order to offer turnkey mortgage services, RBFCU also offers title insurance, appraisal services, and homeowner’s insurance through RBFCU Insurance Agency. Mortgage applications can be filled out and completed online.

Conventional loans have conservative lending guidelines. High FICO scores will be eligible for the best terms, including down payments as low as three percent. RBFCU recommends a FICO score of at least 580 to be eligible for an FHA or VA loan. 


RBFCU not right for you? Read more mortgage lender reviews.


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Our editorial team’s recommendations are a result of their independent and vigorous research. Our writers and editors are never made aware of which companies have established partnerships with our business team prior to writing their reviews.