Costco Mortgage overview
- Adjustable-rate (ARM)
- Refinancing including rate-and-term refinancing and cash-out refinancing
Executive-level Costco members pay lender fees of $350 or less, while Gold-Star members pay lender fees of $650 or less. Lender fees include the application cost, underwriting, commitment and processing. Third-party fees, such as appraisal and title insurance, are not included.
Costco’s marketplace provides a fee estimate from each lender according to your loan details. You’ll get a full fee quote once you choose a lender and request a loan estimate.
In addition to its standard discount for members, Costco sometimes offers additional discounts.
Minimum borrower requirements
Costco’s multi-lender marketplace is open to borrowers with various credit scores, debt-to-income (DTI) ratios and down payment amounts.
In general, it follows Fannie Mae and Freddie Mac’s underwriting guidelines, which means that on a conventional fixed-rate loan, you can put as little as 3 percent down and have a minimum credit score of 620. For adjustable-rate loans, the down payment requirements increase to 5 percent.
Typically, you’ll need a debt-to-income ratio of 43 percent or lower to qualify for a conventional loan. That means that your total monthly debts cannot exceed 43 percent of your gross income, although there are some exceptions.
The Costco marketplace follows government-issued guidelines for FHA loans. That means you may be able to qualify for a loan with a credit score as low as 500 and a debt-to-income ratio as high as 50 percent. It also follows government guidelines for VA loans. For a VA loan, you’ll generally need a credit score of 620 or higher and be able to show that you have low debt relative to your income.