Contact:
Debra Bridwell, ECU SVP Marketing
[email protected] or 423-578-7586
FOR IMMEDIATE RELEASE – October 3, 2014
LOCAL CONDITIONS GOOD FOR FIRST-TIME HOME BUYERS
KINGSPORT – Many first-time home buyers are discovering that purchasing a home is not as prohibitive as they may
have thought, and for what they are paying in rent, they can own. But this may not be the case in the rest of the
country.
“I was nervous when trying to find a lender but as soon as Eastman Credit Union took me under their wing, I really felt
connected to the experience of being a first-time home buyer. I was able to buy a home for less than I could ever find a
place to rent with their First-Time Home Buyers program and I felt the support from ECU every step of the way,” said a
Johnson City resident, who recently purchased her first home using Eastman Credit Union’s First-Time Home Buyers
program.
In a presentation on Thursday in Chicago, Ben S. Bernake, former U.S. Federal Reserve Chairman, mentioned that firsttime home buyers may be inhibited by banks and regulators who have taken lending standards a little too far, according
to reports from Bloomberg and CNNMoney.
Eastman Credit Union’s President and CEO, Olan O. Jones, recently shared that ECU, like all other financial institutions,
made modifications that were necessitated by regulators, but “all in all, ECU takes great precaution with our mortgage
loan portfolio. If you notice, we didn’t take big hits during the economic downturn like many other financial institutions.
We continue to offer the same great mortgage loans that we’ve always made. And we’re excited to make owning a
home affordable for many who may have thought that home ownership was just a dream.”
While Bernake indicated that the first-time home buyer market is “not what it should be” in coverage reported by
Bloomberg, the local economy appears is well positioned for many who may be in the first-time home buyer market.
Many young adults have a heightened understanding of debt due to the nation-wide economic hardships that occurred
in recent years. All signs are now showing that economic conditions are improving, but the new generation in the
workforce is still cautious.
“As a credit union, we’re glad that young adults have an increased awareness of debt and the amount of debt they
acquire. That shows they want to make good financial decisions. The economic hardships that faced the country a few
years ago, gave us all a jolt of reality. But, young adults shouldn’t be scared of purchasing a home. Poor judgment by
some lenders caused the eventual burst of the housing bubble and subsequent economic down-turns we experienced in
2008 and 2009,” said Jones.
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“Mortgage rates are great right now and many renters in our area can purchase a $160,000 home for $800 to $900 a
month, which is what they’re paying in rent,” Jones also stated.
Programs like ECU’s FTHB program don’t require down-payments or private mortgage insurance, and while the interest
rates are a little higher than average rates, the rates are still really great.
“First-time home buyers are still required to meet credit and income requirements, but helping folks get into homeownership earlier not only helps them financially and provides them the satisfaction and pride of owning their own
home, but it helps our local economy too, ” said Jones.
Also, ECU members who recently became homeowners are finding that the process is much simpler and less
intimidating that originally thought.
Much of today’s lending is done online with online pre-approvals and technology that makes getting a mortgage loan as
hassle free as possible.
While some people may shy away from larger loans because they’re intimidated by the process, one ECU member stated
that, “Not only was the process quick but it was stress free too."
About Eastman Credit Union
With approximately 152,000 members worldwide and more than 600 employees, ECU operates 24 branch
offices and more than 70 ATMs in four states, and provides access to over 55,000 surcharge free ATMs
nationwide via the Allpoint Network. For additional information about ECU, visit www.ecu.org or call (800)
999-2328.
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