ROCHESTER, N.Y.—Family First Credit Union here reported it continues to see growth in a program in which it is participating with the Federal Home Loan Bank of New York for first-time homebuyers that matches every $1 deposited with another $4.
The goal is to help those struggling to save enough for a downpayment and closing costs, but who otherwise have the means to cover the cost of owning a home.
The credit union pointed to data from Reis, Inc., a real-estate research firm, that showed rent rose 3.6% during 2014 on average nationwide, with the average rental payment $1,124.34. Its home market of Rochester has the second-smallest vacancy rate of 2.6%, according to the research firm. Since Family First started to offer the program in 2011, enrollment has grown steadily from 17 the first year to 104 in 2014, the credit union said, noting that closings on home purchases grew almost 200% from last year.
“It is not all about the matching of funds though,” said Steve DeVries, Mortgage Manager at Family First. “There is a second component of equal importance that comes in the form of education to help prepare a first-time home buyer for this.”
The $155-million Family First partners with home buying counseling agencies that include The Housing Council and the Consumer Credit Counseling Service of Rochester for the financial education piece of the program. As participants are building their savings, they are also taking part in workshops to learn how to build sustainable budgets, manage their credit, pay off old debt, and more.
“While the process does take at least 10 months to complete, participants have said it was well worth the time because they learned so much and everything was managed with ease,” the credit union said. “In the end, it gives many a path to homeownership they might not have otherwise been able to reach.”
The program is designed to assist moderate- and low-income first-time home buyers in the purchase of a home. The grant comes in the form of matching systematic deposits, in a 4:1 ratio, to a dedicated savings account opened by the home buyer. Those matching funds are to help cover the down payment and closing costs. Home buyers do need to be approved against eligibility requirements and agree to a five-year lien on the mortgage to take part.
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