Shiloh of Alexandria Federal Credit Union

Despite its relatively small size ($1.2 million in assets), Shiloh of Alexandria Federal Credit Union (SAFCU) has been able to offer its members many of the services you might expect only a larger, commercial institution to provide. More importantly, it has also worked to help the underserved, a commitment it’s had since its founding in 1993.  

Recently, this faith-based credit union has begun to offer mortgages to its members through a unique partnership involving Fannie Mae, Prime Alliance, CU National Mortgage, the City of Alexandria, Va., and the Alexandria Redevelopment and Housing Authority. As part of the initiative, Fannie Mae made a $100,000 Community Development Financial Institutions (CDFI) Initiative deposit in the credit union to increase affordable housing in the community SAFCU serves.

SAFCU was formed originally to serve members of the historic Shiloh Baptist Church, organized by ex-slaves in 1865 and one of America’s oldest African-American churches. In 2001, the volunteer-run credit union expanded its charter to serve the Parker Gray section of Alexandria, which includes many low-income and minority families, and those living in Section 8 and public housing.

SAFCU is actually the first credit union to benefit from a new CU National Mortgage service, CU Community Mortgage Center, designed to provide affordable home financing options to members of community development and faith-based CUs. Through the Mortgage Center, SAFCU members will have access to affordable mortgages with low down payments, competitive interest rates and low closing costs.

The initiative will also include access to homeownership counseling for SAFCU members, including low- and moderate-income families, public housing and Section 8 residents and first-time home buyers. The Alexandria Redevelopment and Housing Authority will work with SAFCU to target and reach out to Section 8 residents and others who may be good candidates for homeownership.

“Our credit union is committed to helping those in the community that have been underserved,” said John Dupree, Sr., president of SAFCU. Since its inception, SAFCU has focused on providing financial services to individuals overlooked by traditional financial institutions. The credit union has approved over $3 million in loans since 1993, primarily to low- and moderate-income households. SAFCU also provides relief to individuals victimized by predatory lenders and other high-interest-rate lending institutions.

SAFCU offers members several low-interest loan products designed specifically to counter predatory lending practices. These include its “Grace” pay day loan, a no-fee, low-rate, unsecured loan for up to $750; and a refinancing program to wean members off high-rate predatory loans with more affordable low-rate loans. Both programs require the members to participate in credit counseling sessions.