Shiloh of Alexandria FCU
By Joyce Moed, Reporter
Best Practice for: Preparing members for homeownership and helping them to obtain an affordable mortgage.
ALEXANDRIA, Va.–With approximately $1.2 million in assets and an all-volunteer leadership team, the Shiloh of Alexandria FCU tries to embrace the spirit of the American Dream.
With hopes of helping their members one-by-one to understand what it takes to become a homeowner, preparing both financially and emotionally to apply for a mortgage and finally, and obtaining the home loan are all the things offered by the volunteers at Shiloh. Led by the CU’s founder, John DuPree Sr., the credit union volunteers try to guide the member in many aspects– from repairing their credit to applying for grants/ down payment assistance, and finding the right home to buy.
The members of Shiloh of Alexandria FCU are typically not affluent, nor are they given the lowest financing rates available. Many of its 830 members are single parents with limited income. But over the course of a little more than a year, Shilo has provided mortgages to its members in an amount roughly equivalent to its asset size. These loans were largely complicated deals, involving Fannie Mae’s most flexible products, silent second liens, grant money and in some cases, Section 8 Housing income.
A typical loan at Shiloh of Alexandria FCU starts with a heartfelt conversation between the member and Credit Union President John DuPree Jr., at which time they discuss the member’s current financial situation, their dreams for the future, and what steps need to be taken to get there. The credit union will work with the member through financial counseling, budgeting and perhaps some loans to repair credit, save money and get into a position to be able to support a mortgage. Once the member is deemed ready to buy, the credit union helps to get them approved for a mortgage. An appropriate property is located and the financing needs are assessed.
DuPree Jr., will then work with local and federal agencies to acquire down-payment assistance for the member, as well as pledge funds that the credit union itself has reserved to help its members with closing costs. When the deal finally settles, the credit union will keep up with the member and help them to get their home in shape with donated items and even some hands on home repairs. This whole process could take a couple of years, but the credit union sees the time as an investment in the life of a member, in their community and in their mutual future. |
