Tucson credit unions unite: 100 percent financing program opens door to first-time homeownership

In a groundbreaking effort to tackle Tucson's growing home affordability challenges, a coalition of local credit unions has launched a 100-percent mortgage financing program. Backed by a $200,000 Go West Foundation grant for loan loss, this program aims to help first-time homebuyers secure a foothold in today's competitive housing market.

Known as the Tucson Welcome Home Program, this initiative represents a collaborative approach by credit unions dedicated to serving the community and underscores the industry's mission to help everyday members achieve financial well-being.

Addressing Tucson's affordability crisis

Arizona has recently experienced a 27.5 percent surge in home prices - significantly higher than the national jump of 18.7 percent - and interest rates have also climbed, putting homeownership out of reach for many.

"Those folks that were planning to be first-time homebuyers over the last few years, it's just become so out of reach," said Pima Federal Credit Union VP of Retail Lending Shannon VanDeusen. "We saw the first-time homebuyers really start to disappear, and that was the catalyst for us to say, 'We need to do something.'"

How the Tucson Welcome Home Program works

Many first-time homebuyers find 100 percent mortgage financing essential because rising housing costs, limited savings, and student loan debt often make it difficult for them to accumulate the sizable down payment typically required to secure a home loan.

Under the program, qualified buyers can secure a single-family home or townhome with zero dollars down, provided their income and debt-to-income ratio meet specific guidelines. Applicants earning up to 140 percent of the area median income (up to $126,280 in Pima County) are eligible.

The 100-percent financing to qualified first-time homebuyers eliminates the common down-payment hurdle, thereby helping more families transition from renting to owning. By eliminating costly mortgage insurance fees or down payment requirements, the participating credit unions are able to reduce monthly payments and ease the path to building equity.

"Homeownership brings not only financial and practical stability, but it's a sense of belonging, success, and opportunity," said GoWest Association Executive Vice President and Chief Impact Officer Sharee Adkins. "As housing access and affordability continue to own headlines, these credit unions are doubling down on their commitment to their local community, and this program will make a real difference."

Pima Federal Credit Union, Tucson Federal Credit Union, and Vantage West Credit Union are originating the mortgage loans directly. Meanwhile, Hughes Federal Credit Union and Pyramid Federal Credit Union provide referrals and focus on marketing the opportunity to community members. This division of roles ensures that all five credit unions can make a measurable impact based on their strengths, extending reach and overall effectiveness. (Tucson Old Pueblo Credit Union, a founding member of the partnership, has merged into another credit union and is no longer participating.)

"Buying a home is a dream for many and a key factor in building wealth and stability for families, but the financial challenges can be overwhelming," said Sandra Sagehorn-Elliott, president and CEO of Vantage West Credit Union. "The program aims to help first-time homebuyers by covering the down payment, enabling them to concentrate on other expenses related to home buying."

A real impact for Tucson Families

Since the program's launch in October 2024, the credit unions have already pre-approved multiple applicants. One such applicant is Gail, a single mother and nonprofit employee who had found it nearly impossible to save for a down payment. "She really sees this as the first time she's had a genuine opportunity to look at homeownership for herself," Adkins noted, reflecting on Gail's excitement at a launch event.

Beyond the zero-down financing option, the Tucson Welcome Home Program offers educational workshops on budgeting, maintaining a healthy financial profile, and understanding the responsibilities of homeownership. Participating credit unions have committed to providing classes and resources that equip buyers for long-term success in managing mortgages and property costs.

In total, these credit unions anticipate helping up to 100 first-time buyers, which could translate into as much as $30 million in new lending across Pima County.

By leveraging a collaborative model, the Tucson Welcome Home Program highlights the cooperative spirit that sets credit unions apart from other financial institutions. Rather than competing, these six credit unions pooled resources, ideas, and a $200,000 grant from the GoWest Foundation to forge an innovative solution to the local housing crisis. The result is more than a new mortgage product- it's a clear statement of the industry's mission to serve, uplift, and empower its members on their path to financial security and prosperity.

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