Did you know that, according to a recent survey by Nerdwallet, 62% of Americans believe you need to put down at least 20% to purchase a home? This is, of course, a common misperception, one that could be causing some confusion with your members and potential borrowers.
What is your credit union doing about clearing up this confusion? If you’re not sure where to begin, here are just a few ideas to get help you clear the confusion:
- Offer low down payment government loan options, such as FHA, VA or USDA loans
- Offer conventional low down payment loans, such as Fannie Mae’s HomeReady® loan
- Create marketing campaigns and distribute information on topics such as:
- Ways a borrower can accumulate their down payment
- Home ownership down payment myths and debunking those very myths
- Millennials and purchasing a home. Face it, millennials are the next wave of home buyers, so they need to be educated on down payments as well as the entire process. Be certain it is communicated in ways in which they can relate and understand
- The government and conventional products that you have to offer members and borrowers that could lower their down payments
- Provide home buyer seminars to educate members about the home buying process, loan options and down payment options
- Offer a Realtor referral program that provides the borrower a refund on Realtor’s commissions so the borrower can use it toward a down payment
- Post articles in your credit union’s newsletter and/or website on all of the topics listed above, providing guidance and easy steps to get your members engaged and moving
By taking some or all of these steps and working with an experienced mortgage partner who can guide you with their industry expertise, you will certainly thrill your members by eliminating their down payment confusion and helping them seize their mortgages!
HomeReady® is a registered trademark of Fannie Mae.