Mortgage Lending and Homeownership
Federal Credit Union has taken another step towards empowering
its community. This year, the credit union has launched a mortgage
lending program to help residents become true
stakeholders in their community.
Washington Heights and West Harlem are two of
New York City’s most densely populated neighborhoods, and each
has a homeownership rate of less than 10 percent. Most of the
ownership stock in both areas is cooperatively owned, and many
financial institutions are unable to make mortgages for
this type of housing.
Compounding the problem is the fact that many
residents fear the mortgage application process. Lack of
and previous experience often lead low-income individuals to assume
that they cannot qualify for mortgages, and in turn, many do
not apply for loans. Those who do are often rejected and do not understand why they are not eligible.
To address misconceptions and equip our
constituents with accurate information and necessary skills to
apply for home mortgages, Credit Where Credit Is Due has
launched a Homeownership Training series to complement
Neighborhood Trust’s lending program. The 6-session program guides
participants through the pre-purchase analysis and application stages.
In its first round, 12 participants enrolled
in a Spanish workshop series. Beginning in January 2002,
the workshops will be offered on a
quarterly basis in Spanish and English.