Removing Barriers to Home Ownership
Over the last several years, housing costs have risen significantly across Montana, and homeownership has become out of reach for many Montana families—too many, according to Jack Lawson, Clearwater Credit Union’s President and CEO.
“If you measure household median income relative to median home sales prices, Montana has become one of the least affordable states in the country,” Lawson said.
Clearwater is working hard to do something about it by contributing to local community housing funds, supporting the development of resident-owned communities, and creating custom home loan options that can help make homeownership more attainable.
Local Community Housing Funds
Clearwater has helped make homebuying more affordable through donations to organizations like NeighborWorks Montana, the Gallatin Housing Impact Fund, and the Missoula Housing Impact Fund. These organizations use grants and charitable contributions to help create low-interest, flexible financing options for those making far less than a region’s median income.
“We’re not always the direct lender,” Lawson said, adding that it’s far more important to help people buy homes than it is to add lending dollars to the credit union’s bottom line. As he explained, these organizations help aggregate and pool resources to ensure that money is available to help those who need it, and Clearwater will continue to support initiatives and organizations that work to help families.
Resident-Owned Communities
The River Rocks Cooperative, a Resident-Owned Community (ROC) in Missoula, is a good example of how Clearwater worked with community partners to make home ownership possible. When a mobile home park on leased land went up for sale, the residents whose homes were on that land were concerned about rent increases. With guidance and support from several organizations, the residents banded together to form a resident owned community (ROC). Then, in partnership with NeighborWorks Montana, Clearwater offered below market-rate financing to the residents so they could buy, versus rent, their homes.
Custom Home Loan Options
Clearwater has also developed custom home loan options to help more people directly buy homes. Our Manufactured Home Loan helps people finance manufactured homes not on permanent foundations in approved mobile home communities. Our Next-Door Neighbor Loan comes with a low-down payment and reduced mortgage insurance premiums for those who qualify. Plus, with just a 5% down payment, we waive mortgage insurance entirely for employees in the public works, education, and healthcare industries; for first responders; for employees of nonprofit organizations; or for members of a recognized U.S. tribe.
There’s no single solution that will solve Montana’s housing challenges. We intend to keep doing our part to help make homeownership possible by contributing to local community housing funds, supporting the development of resident-owned communities, and offering custom home loan options.
Equal Housing Lender. All loans are subject to approval. NMLS #447584.