Editors’ note: Costco no longer offers this program.
Along with your rotisserie chicken and megapack of toilet paper, you can also pick up a mortgage at Costco. The Mortgage Program for Costco Members can help you purchase or refinance a home through CrossCountry Mortgage’s multilender platform – which can connect you with a variety of nationwide loan offers with low lender fees.
Best Features
- Low lender origination fees are capped at $250 for executive members and $550 for gold star members.
- The program lets you pick up to four participating lenders, so you can compare loans without receiving spam from dozens of lenders.
- Most standard documentation is submitted online.
Drawbacks
- Only Costco members qualify for the discounts.
- Aside from origination fees, terms may not be better than what you can find elsewhere.
What Types of Mortgage Loans Does Costco Offer?
The Costco mortgage program’s lenders offer a variety of loans options, which include:
- Conventional 10-, 15-, 20- and 30-year mortgages.
- 7/1 and 5/1 adjustable-rate mortgages.
- First-time homebuyer mortgages.
- Low-down-payment mortgages.
- Jumbo loans.
- Federal Housing Administration loans.
- Department of Veterans Affairs loans.
- Refinancing.
How Do Costco Mortgages Work?
On Costco’s website, enter basic information to generate offers, including property amount, down payment, credit score range and ZIP code. Select up to four offers, then enter your information so lenders can contact you to complete an application.
From there, your experience with the application, paperwork and closing will depend on the lenders you choose. But across the board, each lender’s origination fees are capped at $250 for executive members and $550 for gold star members.
What Are Costco’s Terms, Fees and Conditions?
The terms, fees and conditions will vary by lender. That said, you likely need at least a 620 FICO credit score to qualify for a loan in the program.
What Discounts Does Costco Offer?
The mortgage program’s main value is in its low lender fees, which put a $250 cap on origination fees for executive members and $550 for gold star members. Lenders may offer additional discounts, such as autopay or return customer discounts.
How Can You Qualify?
Find which loan offers you qualify for by using Costco’s lender search tool. You can select options, including your property value, your down payment amount and a credit score range from 620 to 850. Search for results and adjust your settings, such as your down payment, if you don’t get the preferred results.
What Credit Score Do You Need?
Costco’s lender search tool only shops for loans available to borrowers with a 620 credit score or higher. You should expect lenders to consider your credit score along with other factors, such as your down payment, loan amount and monthly debt-to-income ratio.
Where Does the Lender Operate?
Costco mortgages are available nationwide, though specific lender availability may vary by region.
Mortgage Calculator
Is your dream home within reach? U.S. News’ mortgage calculator will show you how much house you can afford.
Is the Lender Reputable?
While Costco isn’t a mortgage lender, Costco’s mortgage broker CrossCountry Mortgage has an A+ rating with the Better Business Bureau but a poor rating with Trustpilot.
In 2021, the Consumer Financial Protection Bureau received 97 mortgage-related complaints about CrossCountry Mortgage, primarily related to trouble during the payment process, applying for or refinancing a mortgage, and closing on a mortgage. Reputation ratings for individual lenders may vary.
How Is the Lender’s Customer Service?
While you may have experience with Costco’s customer service, the mortgage program is handled by CrossCountry Mortgage. Reach the mortgage broker through an online contact form or by calling 877-538-8790 Monday through Friday from 8 a.m. to 5 p.m. Eastern Time.
What Are Some of the Lender’s Online Features?
Digital tools will depend on the lender you choose, but most offer online uploading of standard loan documents.
FAQs
Is Costco a Mortgage Lender?
No, Costco is not a mortgage lender. CrossCountry Mortgages operates Costco’s mortgages program and connects potential borrowers with participating lenders.
Costco Mortgage Loans Are Best For:
- People who want to choose a loan from pre-selected lenders.
- People who value low origination fees.
- People who can qualify for loans with Costco’s lenders.
