#4127: SchoolsFirst Lowers Down Payment Requirements to Expand Mortgage Access for School Employees...

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Andrea Blais, Senior Vice President, Real Estate Lending at SchoolsFirst Federal Credit Union, joined us on the show to share SchoolsFirst lowering down payment requirements to expand mortgage access for school employees they serve.

Andrea provided a quick overview of what you all are doing for school employees to expand mortgage access by lowering down payment from 5% to 3% of the home’s purchase price — just in time for home buying season.

She also explained what lowering the down payment will do for would-be homebuyers who are members of SchoolsFirst, looking to mitigate the pain point of homeownership for Californians becoming increasingly out of reach — only 17% saying they can afford a home.

Q&A summary
What initiative is SchoolsFirst Federal Credit Union implementing to assist school employees with home buying?
They are lowering down payment requirements from 5% to 3% to expand mortgage access for school employees.
How much can school employees potentially save on their monthly payments with the new mortgage program?
On average, members have saved about $300 to $350 a month by waiving private mortgage insurance.
What is the significance of lowering the down payment requirement for first-time home buyers in California?
It can lower the down payment by about $17,000 on an average sales price of $875,000, making home ownership more accessible.
What portion of the new down payment can come from gifts?
Only 1% of the 3% down payment needs to come from the member's own funds; the remaining 2% can be a gift.
What is the motivation behind SchoolsFirst's new mortgage program for school employees?
The program aims to address affordability issues and help more members achieve home ownership, especially in California.
How does SchoolsFirst Federal Credit Union view its role in the community regarding home ownership?
They see it as a commitment to serve educators and school employees, helping them achieve the American dream of home ownership.

Check it out and let us know your thoughts and be sure to watch the entire episode below for all the details.