Earlier this year, the Pennsylvania State Employees Credit Union (PSECU) launched its First-Time Homebuyer Program designed to provide funding to first-time homebuyers without a 20% down payment. In combination with offering access to First Front Door (FFD), a down payment and closing costs assistance program offered by the Federal Loan Bank of Pittsburgh (FHLBank), PSECU has been able to make homeownership a reality for more people and households.
The PSECU program allows for 100% financing to creditworthy borrowers with as little as 1% held in borrower reserves. The PSECU program eliminates the requirement for private mortgage insurance, in addition to PSECU’s standard practice of not charging fees for the appraisal, credit report, and flood zone determination. To participate in this program, prospective borrowers are linked to required homebuyer education courses to help them understand the process and responsibility of homeownership.
As one of the Commonwealth’s largest credit unions, with a focus on serving the financial needs of its 590,000 members, reaching Pennsylvania’s first-time homebuyers is central to its business. In 2023, PSECU’s First-Time Homebuyer Program received 1,052 mortgage applications. With the FHLBank FFD program, PSECU has been able to help even more applicants. Access to the FFD grant program in 2023 allowed PSECU to go a step further and provide borrowers with up to a maximum of an additional $5,000 to put toward their closing costs.
“Having worked with the First Front Door grant program previously, I knew that it would be a great addition to our First-Time Homebuyer Program,” said Todd Newpher, Mortgage Originator Manager, PSECU. “In 2023, and for the first time in PSECU’s history, we started offering FFD, which aligns well with our program.”
PSECU recognizes the tremendous impact that owning a home can have on financial stability and a family’s future. The credit union philosophy of “people helping people” drives them to offer innovative programs that create opportunities and growth for their members – enabling them to own their future.
“With PSECU’s already low closing costs, some borrowers were able to get into their new home with little to no out-of-pocket money,” said Newpher. “What a fantastic opportunity to help first-time homebuyers achieve the dream of homeownership!”
In 2024, PSECU is hoping to increase the number of first-time homebuyers served, and FFD is part of that strategy. “We are always looking for ways to improve the lives of those our members serve,” said Alexa Mascara, FHLBank’s product manager for FFD. “This community product is made possible through our members and furthers their great work in our region.”
About PSECU
Opened in 1934, PSECU was founded by 22 ordinary people who pooled $90 and made an extraordinary commitment to each other: To create a financial institution where collective resources benefit all members. Today, PSECU continues that legacy as Pennsylvania’s digital-first credit union, with $8 billion in assets, more than 590,000 members, and a convenient anytime, anywhere banking model. For more information about PSECU, visit psecu.com. PSECU has been recognized as a Best-In-State Credit Union by Forbes, one of America’s Best Banks by Newsweek, and a Best Credit Union by GOBanking Rates. View its Year In Review to learn how PSECU contributes to the greater good.
About FHLBank Pittsburgh
FHLBank Pittsburgh provides reliable funding and liquidity to its member financial institutions, which include commercial and savings banks, community development financial institutions, credit unions and insurance companies in Delaware, Pennsylvania and West Virginia. FHLBank products and resources help support community lending, housing and economic development. As one of 11 Federal Home Loan Banks established by Congress, FHLBank has been an integral and reliable part of the financial system since 1932. Learn more by visiting www.fhlb-pgh.com.
