Community credit union to serve low-income co-ops - Newsline

Rural Cooperatives, March-April, 2004 by Dan Campbell

Northcountry Cooperative Federal Credit Union (NCFCU), a new community development credit union, is helping to make affordable home ownership available to more people across Minnesota and the Upper Midwest. The credit union will make loans to housing cooperatives and members of housing cooperatives to secure affordable home ownership through owner-occupied housing cooperatives. The credit union also offers socially motivated investors an opportunity to support the development of affordable housing in their communities while enjoying the safety of federal deposit insurance.

"NCFCU'S primary mission is to increase access to financing products for housing cooperatives and their members," says Margaret Lund, executive director of Northcountry Cooperative Development Fund (NCDF), sponsor organization for the credit union. "Housing cooperatives are one of the best entry-level home ownership opportunities that exist. Unfortunately, widespread use of this important tool is hindered by the fact that few conventional lenders know how to lend on these properties. The credit union will be a catalyst, providing communities across the upper Midwest access to this vital wealth building opportunity."

NCDF is a Community Development Financial Institution (CDFI) and has been making loans to cooperative enterprises across the regional Midwest since 1978. NCDF is structured as a cooperative, with over 100 member cooperatives, and acts as a catalyst for the development and growth of cooperative enterprises.