Arizona Federal Joins Nationwide Billion-Dollar Home Loan Program To Assist Lower-Income Borrowers

Focusing on helping lower-income borrowers afford their first home, Arizona Federal is taking part in a new $1 billion nationwide mortgage-lending initiative announced today.

The credit union is among 60 across the country that today will begin offering a new mortgage product, called Home Loan Payment Relief (HLPR, pronounced “helper”), aimed at borrowers with household incomes at or below the median in their market. Together these credit unions have committed nearly $1 billion to the HLPR program, a level expected to rise to $3 billion-to-5 billion as credit union participation grows.

“A key part of our mission is helping people of modest means within our membership, many of whom have found themselves frozen out of the housing market because of rising home prices and monthly payments. We can’t produce more affordable housing, but with HLPR we can reduce their monthly payments so more borrowers can qualify,” said Amy Hysell, chief lending officer of Arizona Federal.

Basics of the program include:

• The HLPR loan is a three-year adjustable-rate mortgage that will be offered to qualifying borrowers at one percent below the national average for these loans. Based on current market rates, the HLPR mortgage will be offered at app. 4.5%
   
• Arizona Federal and other participating credit unions are bearing the cost so that the loans can be offered at this more affordable rate as part of their commitment to serving people of modest means.
   
• A $500 down payment is required and can use gifted funds for other remaining down. After three years, the rate will adjust annually to market rates, with rate adjustments capped at 1% a year and 5% over the life of the loan
   
• The loan is available to borrowers whose household income is either at or below the area median income (with additional eligibility for those in “high cost”-designated areas)
   
• No private mortgage insurance (PMI) is required
   
• The HLPR mortgage will benefit qualifying borrowers in several ways: through lower monthly payments; by qualifying for a larger mortgage; or by lowering the income level needed for a given mortgage
   
• Members must apply on-line through Lender Live. Internal calls or calls to Nexstar will be routed to our Mortgage Loan Consultant who will then submit to Lender Live.

“Credit unions are about ‘people helping people’ from all walks of life. With this new HLPR loan, we’re giving our lower-income members a greater opportunity to purchase a home and begin to build wealth as the equity in their home accumulates, said Laura Lowe Edgar, director of community services.

For more information on Arizona Federal, please call (602) 683-1000 or visit their Web site at www.arizonafederal.org.

Arizona Federal is one of the state’s largest credit unions with more than $1.25 billion in assets, over 163,000 members and 21 Arizona locations. Arizona Federal is dedicated to effectively serving its members’ financial needs through a professional staff, sound economic principles and a full range of financial services according to the philosophy of people helping people. Arizona Federal is also dedicated to providing financial education and playing a positive role in the community.

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