Dublin, OH (September 25, 2006) – As
home prices rise along with interest rates, the dream of
homeownership becomes more and more distant for many Americans.
But Ohio’s credit unions are helping lower-income Americans buy
their first homes and begin building personal wealth.
Twenty Ohio credit unions have joined the Credit Union National
Association’s Home Loan Payment Relief Program to make
below-market-rate mortgage loans available to Americans with
household incomes at or below the median in their market.
Qualified borrowers receive a three-year adjustable rate mortgage
at 1% below the national average. These lower rates result in
reduced mortgage costs and monthly payments -- increasing
eligibility for credit union members previously unable to qualify
for mortgage loans.
More than $29 million has been pledged to the program by 20
participating Ohio credit unions. Nationally, Ohio ranks third in
the number of credit unions participating in the Home Loan Relief
Program, closely following California and Massachusetts.
Participants range in size from assets less than $100 million to
$1 billion.
“Ohio’s credit unions stand ‘shoulder-to-shoulder’ with their
national peers to serve low- to moderate-income Americans by
participating in this important collaborative outreach effort,”
said Ohio Credit Union League President Paul L. Mercer.
Ohio credit unions’ participation in this effort to get
lower-income Americans into their own home and on the path to
personal wealth is one of many tangible ways that credit unions
serve their members and communities.
Nearly 70% of Americans are homeowners, a record reached in 2004
according to the U.S. Census Bureau. However, only half of
Americans in the lowest fifth of the income scale are homeowners.
The homeownership rate among this group has not seen any gains in
the past several years, unlike the other income brackets. Credit
unions are doing something to improve that number.
Ohio participants include: AurGroup Financial Credit Union in
Fairfield, Cardinal Community Credit Union in Mentor, CES Credit
Union in Mt. Vernon, CME Federal Credit Union in Columbus, Day Air
Credit Union in Kettering, DayMet Credit Union in Dayton, Faith
Community United Credit Union in Cleveland, Fremont Federal Credit
Union in Fremont, KEMBA Financial Credit Union in Columbus, Marion
Community Credit Union in Marion, Midwest Community Federal Credit
Union in Defiance, MidState Educators Credit Union in Columbus,
Ohio University Credit Union in Athens, Seven Seventeen Credit
Union in Warren, Sharefax Credit Union in Cincinnati, Superior
Federal Credit Union in Lima, Telhio Credit Union in Columbus,
Toledo Area Community Credit Union in Toledo, Western Credit Union
in Columbus, and Wright-Patt Credit Union in Fairborn.
Nationally, more than 130 credit unions have pledged more than
$1.1 billion to help Americans achieve the American Dream, who
might not otherwise be able to do so.
Homeownership is one of the few ways average Americans can
accumulate wealth. Ohio’s credit unions are dedicated to providing
both affordable and accessible financial services to Ohioans.
