LOS ANGELES -- Los Angeles Federal Credit Union is encouraging its members to take advantage of low home prices and interest rates by offering a home buying service and a rebate on the Realtor's commission.
Beginning next month, Los Angeles FCU members can take advantage of the credit union's Home Search and Commission Rebate Service, which helps members find a home and then rebates 25% of their agent's commission. The 25% rebate can be applied toward closing costs or to pay down the mortgage.
"Any member interested in a real estate loan may be placed into the one-stop approach of this benefit," said Susan Reeves, national director-affinity programs at HomeSold Inc. "They can get their loan through LAFCU, receive a prescreened, preapproved agent, an advocate who will help with questions regarding the transaction process."
The rebate is funded by HomeSold, a third-party affinity company that has partnered with LAFCU to provide this benefit. The average real estate commission in California is 6%, split between the seller's and the buyer's agent evenly, and since Home Search is a referral program, the total payment to the brokers involved is reduced. The member receives the rebate check within 15 working days of close.
The $657 million asset Los Angeles FCU said it offers members low mortgage-loan rates, convenient terms, waived fees, a free 45-day rate lock and no prepayment penalties.
But given the state of the real estate market, why launch this service now?
"This is the most exciting time we've had as far as first-time homebuyers are concerned in a number of years," said Reeves. "Interest rates are still reasonable, the price of houses is going lower all the time with additional possibility of a foreclosure purchase, and this type of benefit is just the boost a new homebuyer can really appreciate. A great loan, a prescreened, preapproved agent and money back at the end? How can it get any better?"
