July, 2009The Federal Home Loan Bank of Dallas (FHLB Dallas) awarded a $100,000 Affordable Housing Program (AHP) grant to the U.S. Community Development Corporation (USCDC) to assist low- and very low-income, first-time homebuyers in Dallas/Fort Worth, Texas. The AHP funds were made available through Guaranty Bank in Austin, Texas.
The grant will provide 20 first-time homebuyers with down payment and closing cost assistance. A portion of the grant will also provide in-house credit counseling services. Grant recipients will work with an experienced credit counselor to address issues that may affect their mortgage loan qualifications, and to help them understand the process of buying a home.
"Our primary focus is to provide down payment assistance to people who are below 60 percent of the area's median income in the DFW metropolitan area," said Marcos Rincon, Executive Director of USCDC. "We're looking for the most affordable houses available in those markets. We are very pleased that the Federal Home Loan Bank of Dallas and Guaranty Bank have partnered with us to provide assistance for these low-income families. Since the markets have gotten so tight, it is very hard for people to qualify for mortgage loans. The down payment assistance will give these families that extra boost to help them qualify for a loan."
Carla Carroll, CRA Manager at Guaranty Bank, said that Guaranty has been involved with the FHLB Dallas's grant programs for more than 15 years. She added that FHLB Dallas has awarded Guaranty and its partners more than $10 million in AHP grants over the course of its membership, and has assisted with the construction or renovation of more than 2,500 units.
"This year's grant funds will enable many people to purchase a home that otherwise would not be able to afford it," said Ms. Carroll. "It has made a huge impact on the people and communities we serve."
Each year, FHLB Dallas returns 10 percent of its profits to the communities served by member institutions in the form of AHP grants issued through its member financial institutions. So far in 2009, FHLB Dallas has awarded $5.4 million to projects within its five-state District, including almost $1.2 million to projects in Texas, resulting in the creation or renovation of 178 housing units in the state.
About the Federal Home Loan Bank of Dallas
The Federal Home Loan Bank of Dallas is one of 12 district banks in the FHLBank System created by Congress in 1932. FHLB Dallas, with total assets of $68.7 billion as of March 31, 2009, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit the FHLB Dallas web site at fhlb.com.