The Federal Home Loan Bank of Des Moines made an additional $6 million of funds available to its members for a program that subsidizes
Since it launched the program, called Mortgage Rate Relief, this spring, FHLB Des Moines members have funded over 1,000 loans in underserved areas by permanently reducing interest rates by approximately 2 percentage points lower than the current market rate. This relief was available to both purchasers and existing borrowers who were earning up to 80% of the area median income.
The additional first come, first served funding was available starting Sept. 16.
When it launched the program in May, the initial commitment was for grants totaling $25 million. Those funds were exhausted by July.
"The Mortgage Rate Relief product is aligned with our mission and specifically designed to support our members with the goal of
Mortgage Rate Relief is a part of the bank's voluntary funding program, which is the 10% statutorily required contribution of net income to affordable housing. In 2024, all of the Banks agreed to
This funding is available to FHLB Des Moines members who are a part of the Mortgage Partnership Finance program, a secondary market outlet run by the Chicago bank that several of the FHLBanks participate in.
Recently, community activist John Hope Bryant called for
TopLine Federal Credit Union, headquartered in Maple Grove, Minnesota, called this a new program in a press release that publicized its participation; but the institution has been involved since inception.
So far, the credit union had 17 of its members participate in the initial program for a total of $3,830,437.
"We believe that homeownership should be within reach for everyone," says Mick Olson, president and CEO of TopLine Financial Credit Union. "We were excited to partner with the Federal Home Loan Bank of Des Moines to offer the Mortgage Rate Relief Program to make home buying more affordable, and help our members achieve their goals of homeownership."