Do you remember the 90s? A Google search on highlights of the 90s include great topics such as:
- The Budweiser “Wazzup” ads
- The birth of grunge: Nirvana, Pearl Jam, etc.
- Michael Jordan and the dominance of the Chicago Bulls in the NBA
- The Walkman (precursor to the iPod if you don’t know what a Walkman is)
- Preparing for the end of the world (a.k.a., Y2K)
- And so much more.
All of these are long gone, some thankfully, some missed.
But the one thing that left and now seems to be coming back is the re-emergence of the first-time home buyer. For the last few years, the number of first-time home buyers remained at the highest levels since the 1990s. In fact, about half of all home buyers are first-timers. WOW!
Are you taking advantage of this?
Do you have products targeted specifically at first-time home buyers? Fannie and Freddie have products, but I’d suggest you think broader than that.
Do you offer FHA, VA and USDA home loans? All of these offer flexible underwriting criteria, may allow for lower credit scores and have lower down payments.
Years ago, our parent, Wright-Patt Credit Union, decided it was going to focus on catering to first-time home buyers. This was done through originator hiring practices, training programs, educational seminars for members, a home buyer rebate program and partnerships with home ownership non-profits in our market. We took the time with borrowers when other larger lenders didn’t… and it has paid dividends. WPCU grew its mortgage market share from below 2% to now financing 1 of every 7 homes in Dayton.
You see, we decided that if we built a mortgage operation that took great care of first-time home buyers, we would be well equipped to take care of all homeowners. It was certainly a member-friendly decision back then and continues to be today. Think about how you and your credit union might do the same.