$25 Million in Grant Funds Allocated to New Mortgage Rate Relief Product to Provide Affordable Homeownership
last updated on Monday, May 6, 2024 in Business News
The Federal Home Loan Bank of Des Moines (FHLB Des Moines) launched a new product, Mortgage Rate Relief, which will provide $25 million in grant funds to those seeking affordable homeownership. This product is designed to make homeownership attainable for borrowers at or below 80% of the Federal Housing Finance Agency’s (FHFA) Underserved Areas Data, by permanently reducing their interest rate by approximately 2 percentage points lower than the current market rate.
“The Mortgage Rate Relief product is aligned with our mission and specifically designed to support our members with the goal of improving housing affordability within their local communities.” said Dan Mahlum, FHLB Des Moines Mortgage Programs Director.
FHLB Des Moines provides funding solutions and liquidity to more than 1,200 financial institutions across its district to support mortgage lending, economic development, and affordable housing in the communities they serve. The new Mortgage Rate Relief product is available to Participating Financial Institutions within the Mortgage Partnership Finance® (MPF®) Program. This is one of two major initiatives FHLB Des Moines has committed to in 2024 through their voluntary contribution programs. Introduced in 2023, the Member Impact Fund, has provided $35 million to hundreds of non-profit and government agencies in targeted states throughout the FHLB Des Moines district.
About Federal Home Loan Bank of Des Moines
The Federal Home Loan Bank of Des Moines is deeply committed to strengthening communities, serving 13 states and three U.S Pacific territories as a member-owned cooperative. FHLB Des Moines is one of 11 regional Banks that make up the Federal Home Loan Bank System. Members include community and commercial banks, credit unions, insurance companies, thrifts and community development financial institutions. FHLB Des Moines is wholly owned by its members and receives no taxpayer funding. For additional information about FHLB Des Moines, please visit www.fhlbdm.com/about.
Media Contact:
Julie DeVader | Public Relations Manager
515.412.2712
JDeVader@fhlbdm.com