National Credit Union Foundation Earns $710,296 Grant from HUD

homeownership loan closingAs potential first-time homebuyers struggle to enter a tight mortgage market, the National Credit Union Foundation (NCUF) has earned a $710,296 grant from the U.S. Department of Housing and Urban Development (HUD) to support homeownership counseling for consumers with low incomes.

NCUF will use its grant money to underwrite costs of counseling programs provided by 22 not-for-profit credit unions. Together, these credit unions will leverage their NCUF grants into nearly $6 million to support low-income counseling and affordable homeownership.

Through September 2008, these 22 credit unions plan to reach nearly 10,000 potential first-time homebuyers, including 6,525 who earn less than 80% of their area median income.

The National Federation of Community Development Credit Unions is partnering with NCUF to provide technical assistance and training to participating credit unions. (Click here to read about this new partnership.)

“Especially after the collapse in the sub-prime housing market,” said NCUF Deputy Director Steve Bosack, “our new HUD grant is a vote of confidence in credit unions’ ability to not only help low-income consumers buy their first homes, but also to help low-income homebuyers keep their first homes.”

HUD funds flowing through NCUF will help expand credit union counseling services from pre-purchase to post-occupancy. Bosack reported that counseling has proven successful in helping credit union members buy their first homes, avoid predatory mortgages, and prevent defaults.

This marks the fifth straight year that NCUF has been approved for a HUD grant.

“Our foundation has invested hundreds of thousands of dollars and countless hours of technical assistance to help credit unions make the most of their HUD grants,” Bosack related. “As a result, participating credit unions have counseled nearly 28,000 aspiring homebuyers over the past four years.”

This year’s grant will provide HUD funding for 17 credit unions, and allow five more to continue as HUD-certified sub-agencies with internal funding.

HUD-Funded Counseling Programs

  • 1st Choice Credit Union, Atlanta, Georgia
  • Alternatives Federal Credit Union, Ithaca, New York
  • Brooklyn Cooperative Federal Credit Union, Brooklyn, New York
  • Cooperative Federal Credit Union, Syracuse, New York
  • El Paso Affordable Housing Credit Union Service Organization (owned by eight credit unions in El Paso, Texas)
  • LA DOTD Federal Credit Union, Baton Rouge, Louisiana
  • North Side Community Federal Credit Union, Chicago, Illinois;
  • Opportunities Federal Credit Union, Burlington, Vermont
  • OUR Federal Credit Union, Eugene, Oregon
  • Smart Money Community Services (with Cincinnati Central Credit Union in Ohio)

Self-Funded Counseling Programs

  • ASI Federal Credit Union, Harahan, Louisiana
  • Border Federal Credit Union, Del Rio, Texas
  • Center for Financial Health (a non-profit organization formed by Option 1 Credit Union, Grand Rapids, Michigan)
  • SOFCU Community Credit Union, Grants Pass, Oregon
  • South Side Community Federal Credit Union, Chicago, Illinois
Learn more about federal grants through NCUF....