MADISON, Wis. — With average home prices in Dane County about half those in the Los Angeles area, some LA folks might not think Madison-area homebuyers have a problem.
But the University of Wisconsin Credit Union has seen first-hand that purchasing a home isn't always easy, even in an area where costs are considered reasonable. That's true not only for young first-time homebuyers, but divorced or widowed people whose financial circumstances have changed since they became homeowners.
So the University of Wisconsin Credit Union has launched Home Attainable. The program offers a 30-year fixed-rate mortgage with up to 100% financing. In addition to being a member of the credit union, borrowers must:
Recommended For You
- Be buying a single-family, owner occupied home in Wisconsin.
- Have a combined annual income no more than $58,000.
- Be a U.S. citizen or resident alien.
- They do not have to be first-time homebuyers.
UWCU has pledged $6.5 million to fund the program. Within the first 30 days 14 applications were in the system, and Julio Rios, director of mortgage lending, figured the credit union was already committing nearly $1 million.
Rios indicates word-of-mouth, at least in the early stages, was proving to be a powerful marketing tool. The program is promoted on the credit union's Web site and in news releases, and it will be featured in the member newsletter. Some marketing to realtors is also scheduled.
"Whenever you come up with an affordability product the challenge is making sure it reaches the right folks," Rios says. "We want to target people who don't have an exorbitant amount of assets, yet are capable and responsible enough to own a home."
Rios believes the program has some built-in safeguards to prevent people from taking out loans that could prove too much for them to handle, a situation that has drawn headlines criticizing the subprime mortgage market.
"We followed pretty much the FreddieMac and FannieMae guidelines on some of their products. It's not as though we're writing loans that aren't going to meet secondary market standards," he explains.
The program may benefit from the fact the Madison area is still a buyer's market. At the same time, prices have appreciated in perhaps the low single digits.
As for competition from mortgage products similar to Home Attainable, overall Rio figures the program is probably unique in terms of its specific parameters. As it gains momentum, he expects to see rivals debuting something similar.
"The one thing we can't do is create affordable housing," Rios says. "But we can assist people with the cost of owning a home. It's up to us as cooperatives to look at how we can better serve our members. You have to study your specific membership and identify ways you can help people become homeowners.
"You also have to examine the risk and make sure you aren't going to put people in a position where they're going to be hurt a year or two down the road.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
