Small CU In Partnership To Offer Mortgage Loans
Shiloh of Alexandria FCU has introduced a new program that will allow the $1.2-million credit union to provide affordable mortgage services to its low-income members, most of them members of the Shiloh Baptist Church, one of the oldest African-American churches in the country. Under the program, the Alexandria Redevelopment and Housing Authority will target outreach to credit union members living in subsidized Section 8 housing who may be good candidates for homeownership. Local organizations will counsel members on home buying.
Fannie Mae has deposited $100,000 into the tiny credit union to provide seed money for home loans. "This sends an important message-Even the smallest credit unions can offer mortgages with low downpayments, below-market interest rates, and discounted closing costs, when they seek creative and civic-minded partners," said NCUA board member Debbie Matz.
The initiative is the first under a new CU Community Mortgage Center, an affordable housing program for faith-based credit unions offered through CU National Mortgage, of Pine Brook, N.Y.