About the My Community Mortgage Program

OVERVIEW

No required down payment. Member pledges. Blue connects and protects. Why did Blue create this program?

Blue Federal Credit Union is launching a limited pilot to evaluate the willingness of members to buy share certificates which are pledged as collateral for pooled mortgages requiring no down payment. With a limited number of mortgage candidates in the pilot, we expect to learn about the level of demand both for the mortgage product and for the pledged share certificate. Additionally, we will evaluate the administrative requirements necessary to manage the portfolio. As a community focused organization, Blue wants to ensure that members of our communities can realize the ultimate American dream of homeownership. With rising home prices, people who otherwise could afford a home (mortgage payments, insurance, and taxes) sometimes have a hard time saving up for a 20% down payment. With this program, the down payment requirement can be waived while also providing pledgers with an incredible interest rate on their pledged funds. It’s a win-win for everyone!

Insured by NCUA. An equal housing lender.

THE BARRIERS OUR COMMUNITY MEMBERS FACE

Rising Home Prices

Rising home prices have negatively impacted the availability of housing for Blue’s members and the communities in which Blue operates.

Saving Isn’t Enough

Salaries and wages often are not sufficient to establish savings toward a 20% down payment that is commensurate with current home prices.

WHAT BLUE CAN DO

Mortgage Insurance

Typical mortgage insurance premiums increase the monthly obligations of borrowers, reducing their borrowing capacity and further limiting home-ownership.

Social Impact

Members and employees want Blue to become a “community connector”. In this respect, we will offer term share certificates that directly address the problem of housing affordability.

Dedicated Support

A dedicated group of Blue employees will be paired with borrowers in the Community Mortgage pilot –monitoring spending trends and helping members make good financial decisions.

Credit & Underwriting

Credit and underwriting standards will remain conservative, except for the allowance of up to 100% LTV, which is necessary to address rising home prices and limited home-ownership.