TUSTIN, Calif. — The $35-billion SchoolsFirst Federal Credit Union has lowered the minimum down payment requirement on mortgage loans for eligible school employee members, reducing it from 5% to 3% of the home’s purchase price in an effort to expand access to homeownership.
The change is designed to make it easier for educators and other school employees to qualify for mortgage financing by lowering upfront cash requirements, a key barrier in today’s high-cost housing market. SchoolsFirst said the move aims to help more members “achieve their dream of owning a home” as affordability pressures continue to challenge first-time and moderate-income buyers.
The CU said recent data shows that homeownership for Californians is increasingly out of reach, with just 17% saying they can afford a home, according to the California Association of REALTORS.
“As a leading advocate for strengthening the financial well-being of California school employees, SchoolsFirst FCU is taking steps to help bridge the gap,” the organization stated.
“California’s school employees dedicate their lives to educating and supporting our communities, yet too many are being priced out of the dream of homeownership,” said Bill Cheney, SchoolsFirst CEO. “Our purpose is to serve the people who serve others, and that means taking real action to make homeownership more attainable. By reducing upfront barriers through enhancements to our mortgage lending program, we’re opening doors for our Members to put down roots, build stability and create generational wealth.”