Credit Union Loaning to Lower Denominator

A credit union in Michigan is reaching out with their Turning Point Home Loan to people with lower credit scores but with enough financial stability worth the risk. Michigan First CU’s vice president of lending, Chris Maynard says, “Take members who lost their job at the height of the financial crisis. They may have a low credit score because they were forced to make some difficult decisions, and now are back on their feet. But their credit score has yet to catch up. These people are good risks. They have verifiable income and the capacity to pay. We believe it is a good move to give them a chance a little bit ahead of schedule. By starting now at 580 we feel we can appeal to this new and growing segment of borrowers.” The 2010 census indicated 20,000 fewer homes in the Detroit metro area than ten years ago. “So many homes are vacant and Turning Point will help a lot more people get into a home,” he says. NationalMortgageNews tells Michigan First offers five to six percent APR loans for 10-, 15- and 20-year fixed rate terms with a ten percent down payment.

(Graphic credit: Michigan First CU)

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