The Federal Home Loan Bank of Atlanta (FHLBank Atlanta) will make available up to $11 million as part of its 2010 First-time Homebuyer Program (FHP). FHLBank Atlanta offers the matching funds through its member financial institutions for the down payment and closing costs of eligible first-time home buyers in the bank's district, which includes Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and the District of Columbia.
By participating in FHP, FHLBank Atlanta members can access up to $1 million annually and distribute matching FHP awards of up to $7,500 per household to eligible home buyers. The availability of FHP funds helps FHLBank Atlanta member institutions expand their customer base, originate new mortgages and attract potential home buyers, the bank says.
The FHP offering cycle opens April 19 and continues through Dec. 31 or until all available funds are disbursed, whichever occurs first. Funds are provided to member institutions on a first-come, first-served basis, and applicants must request the funds from a participating member institution.Â
Since the FHP's inception in 1997, FHLBank Atlanta has contributed nearly $60 million to first-time home buyers. FHLBank Atlanta estimates that for every $1 of FHP funding awarded, up to $14 is generated in new mortgage business for its members.
‘The First-time Homebuyer Program serves as a very attractive incentive to potential homeowners, and it stimulates home purchases that are critically important in the current market,’ says Arthur Fleming, senior vice president and director of FHLBank Atlanta's community investment services.
Individual participants receiving FHP funds must complete a home-buyer counseling program that includes educational training on the home-buying process, including courses on budgeting, mortgage financing, lending laws and homeownership fundamentals.
FHLBank Atlanta has also announced that the 2010 Affordable Housing Program (AHP) application round will open July 6 and continue until the application deadline of Aug. 5. Since its inception in 1990, FHLBank Atlanta's AHP has provided more than $380 million of funding to help build more than 60,000 units of rental and homeownership affordable housing.
SOURCE: FHLBank Atlanta