Credit Unions Pave the Way for Affordable Homeownership Across America

The dream of owning a home no longer needs to be a distant aspiration for many Americans. Credit unions across the nation are stepping up to address the ongoing housing crisis, providing innovative solutions that make homeownership accessible to more people.

For over two decades, the U.S. has grappled with a severe housing crisis, marked by a persistent shortage of homes and compounded by factors like the 2008 financial crash. Today, with home prices soaring and on a backdrop of rising interest rates, potential homeowners face formidable barriers that can feel insurmountable. Estimates indicate a shortfall of about 4 million homes, exacerbated by the COVID-19 pandemic, which drove up rents and construction costs, pushing average monthly mortgage payments nearly 60% higher between 2020 and 2023.

Amid these daunting challenges, credit unions are leveraging their unique community-oriented structures to facilitate homeownership. Unlike traditional banks, where profit maximization drives decisions, credit unions prioritize members' well-being, viewing them not just as account holders, but as part of a collective community. Sharee Adkins, EVP and Chief Impact Officer for GoWest Credit Union Association, emphasizes this approach: "Homeownership should be attainable and realistic for everyone, and credit unions believe that."

One remarkable example of collaboration among credit unions can be found in Tucson, Arizona. Five local credit unions—Pima Federal Credit Union, Tucson Federal Credit Union, Vantage West Credit Union, Hughes Federal Credit Union, and Pyramid Federal Credit Union—joined forces to create the Tucson Welcome Home program. This initiative provides a remarkable 100% financing option, eliminating down payments and private mortgage insurance, thereby removing significant barriers for low- to moderate-income families. So far, 35 households in Southern Arizona have successfully entered homeownership through this program, marking a significant step toward housing equity in the community.

The ripple effects of these efforts extend beyond individual families. Dustin Powell, CEO of Pyramid Federal Credit Union, notes, "The positive ripple effects of addressing housing insecurity can't be overstated and will benefit Tucson and the surrounding community for years to come."

In Washington state, a partnership among five credit unions—BECU, Salal Credit Union, Sound Credit Union, Verity Credit Union, and WSECU—has led to the development of 275 affordable apartment units through the Evergreen Impact Housing Fund and developer DevCo. This project, named the Astra housing development, aims to serve working families in Renton, highlighting how cooperative efforts can lead to substantial housing solutions amid ongoing challenges.

Similarly, Verity's collaboration with HomeSight in Seattle has birthed U-Lex, the first Limited Equity Co-op affordable housing project in the region. This initiative addresses the long-term impacts of historical practices such as redlining, which have significantly affected the Othello Square area in Southeast Seattle. This community is celebrated for its diversity—home to approximately 40 different ethnicities and 60 languages—yet many low- to moderate-income families strive for affordability and stability. HomeSight's project intends to provide housing for nearly 100 families, ensuring they can remain in their community and access local resources like schools and jobs.

Paul Barenfus, Chief Lending Officer, expresses pride in supporting such crucial initiatives: "We're so proud to support this project, offering an affordable co-op housing solution that celebrates the Othello community and people and will stay affordable for years to come."

Throughout the U.S., credit unions are continuously exploring innovative strategies aimed at enhancing housing accessibility. Their focus reflects a profound understanding that housing is not merely a financial investment but a fundamental human right. As they work collaboratively on local and national level initiatives, credit unions stand out as a beacon of hope for those yearning for sustainable homeownership.

In conclusion, credit unions are not just financial institutions; they are committed community partners aiming to transform lives through accessible homeownership. With continued innovation and collaboration, the collective efforts of credit unions across the nation illustrate that the dream of homeownership need not be deferred any longer.

About GoWest Credit Union Association

Representing nearly 300 member credit unions across Arizona, Colorado, Idaho, Oregon, Washington, and Wyoming, the GoWest Credit Union Association acts as an advocate for cooperative finance. Their mission is focused on enhancing member services to improve the financial lives of over 17.4 million consumers.