Growing up, many of us probably spent time daydreaming about the career we would have, the type of car we would drive, and the home we would live and raise our families in. All key components of the American dream, these things—plus more—seemed possible as a child to achieve. However, as adults, we realize that achieving the American dream is not as easy as it seems.
According to Investopedia, the American dream will ultimately cost $4.4 million over the course of our lives if we account for “lifetime household cost of common milestones, including getting married, raising two children, buying a home, having new cars, saving for retirement, going on yearly vacations and more.” Yes, this expense will vary from family to family, but nevertheless, it puts into perspective how difficult the American dream can be for certain families.
June is National Homeownership Month
As a mainstay of the American dream, the Tennessee Credit Union League would like to draw special attention to National Homeownership Month in June to remind our credit union membership the significant role our institutions can play in helping its members make homeownership more attainable.
For home buyers, there are numerous reasons for wanting to become a homeowner—financial independence, long-term financial security and sense of community. On the other hand, there are many reasons that make home buying a challenging task—rising housing costs, lack of affordable homes, insufficient wages and sizeable debt.
Let’s consider recent housing statistics [PDF] provided by the National Association of Realtors (NAR). As of March 2025, the median listing price for a home in the state of Tennessee is $427,400.
To afford a mortgage in the state, the income needed is $120,095. However, the median family income for Tennesseans, as last reported in 2023, was $85,440. This is the median for the state; in some areas, it is lower. This equates to an income gap of -$34,655, simply deducing that homes in Tennessee are unaffordable, especially when we consider the households of middle- and low-income families.
While buying a home may appear like a far stretch, not only in Tennessee but nationwide, it is important that credit unions remind its members why they are integral in helping them achieve their homeownership goals. As a trusted financial partner, credit unions offer a wide range of tools and services that make the home buying process easier and more affordable, such as:
- competitive mortgage and interest rates;
- lower down-payment requirements and assistance programs;
- first-time homebuyer programs;
- repayment plans tailored to meet members’ financial situations; and
- educational resources and workshops.
For example, compared to traditional banks, credit unions offer competitive mortgage rates with more favorable terms. See the chart below for national average mortgage rates between credit union and banks for the first quarter of 2025, as reported by the National Credit Union Administration.
| Product | Credit Unions | Banks |
| 30 Year Fixed-Rate Mortgage | 6.68% | 6.81% |
| 15 Year Fixed-Rate Mortgage | 6.16% | 6.39% |
| 5/1 Year Adjustable-Rate Mortgage | 6.06% | 6.83% |
| 3/1 Year Adjustable-Rate Mortgage | 6.38% | 6.83% |
| 1 Year Adjustable-Rate Mortgage | 5.77% | 6.7% |
With rising prices, limited inventory of affordable homes and stagnant wages, credit union mortgage lending can be a vital path to homeownership and financial security for many credit union members. Whether they are first-time homebuyers or buyers looking to downgrade or upgrade, lets remind our members of the credit union difference and that we are here to provide them with financial solutions that meet them where they are.
So, during this National Homeownership Month—and all year long—let’s work to make homeownership a reality and part of the American dream.
