For many, the American Dream is about homeownership. The picturesque lawn, kids and homey sense of belonging is not only a sign of success, but a fulfillment of the personal pursuit of happiness.
One financial institution, Geddes Federal Savings & Loan Association, has taken initiative to help their neighbors achieve one of life’s major milestones—buying their first home.
A Good Start With Geddes Start
Financial costs are a major reason why many Americans hold off on homeownership, as evidenced by the high upfront costs potential first time home buyers often face.
“For first time home buyers, it’s really establishing credit and funds for down payment and closing,” said Geddes Federal Savings & Loan Association Senior Vice President Jeanne Mathews-Fox about common challenges for first time homeowners.
With an understanding of these unique challenges, Geddes Federal Savings & Loan Association created Geddes Start, a program specifically to help first time home buyers achieve their dreams of home ownership.
“We only require 3% down, normally it’s 20% down. We don’t require PMI,” said Mathews-Fox about the Geddes Start program. PMI refers to Private Mortgage Insurance, an often required, and often costly, form of homeowner’s insurance. Private Mortgage Insurance is most commonly required with a low down payment, according to Mathews-Fox. “This program has reduced requirements and we do give special considerations,” said Mathews-Fox.
Local Home Loans
Many lenders were hit hard by the housing bubble of the late 2000s. A major cause of the housing bubble was home loans being sold on the secondary market, according to Investopedia, a financial literacy website.
When home loans are sold on the secondary market, a home loan is provided by one bank, then pooled together with other home loans in the form of a bond. This bond is then sold to investors, increasing speculation in the housing market. When a home loan is sold off on the secondary market, particularly when pooled with other home loans, home owners can have trouble receiving support for their loan, as the loan is often sold, making it difficult for home owners to contact their lender.
A Reputation That Crosses Generations
Geddes Federal Savings & Loan Association loan recipients have never had this problem. “We don’t sell our loans to the secondary market,” said Mathews-Fox. “The person that held their hand from opening to closing will be the same person, 5, 6, 10 years down the road…You’re not calling California, Texas, a different institution who has no idea who you are.”
Avoiding these speculative practices ensures that people who receive a home loan from Geddes Federal Savings & Loan Association have local support for their home loan. It’s also a testament to Geddes Federal Savings & Loan Association’s commitment to their community.
“We only lend within 50 miles of our Westvale Plaza office,” said Mathews-Fox.
Geddes Federal Savings & Loan Association provides home loans within just 50 miles of their main branch, keeping loans local.
Geddes Federal Savings & Loan Association has provided mortgage loans for over 65 years. As a result, some customers have made a family tradition of getting home loans through Geddes Federal Savings & Loan Association.
In one case, a father advised his son & the son’s fiancée to get their mortgage through Geddes Federal Savings & Loan Association. “The father is a long term customer, and he told him that Geddes was the place to go for a mortgage.” The Geddes Start program made the mortgage loan attainable for the young couple.
“That’s part of our mission, [and] part of our original mission back in 1949,” Mathews-Fox said, “Which is to help people in the community attain a home.”
Achieving Your Full Potential
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