Community Partners Product Opens New Markets for FHLBank Atlanta Shareholders
May 2014 - FHLBank Atlanta is committed to working with its shareholders to support families and individuals who make their living serving others in their community. The Bank’s newest home purchase product – the Community Partners Product – provides up to $7,500 to assist law enforcement officers, health care workers, firefighters, and educators purchase a home.
“The Community Partners Product gives us a wonderful opportunity to offer some well-deserving members of our community help with buying a home,” says Jerry Mabry, President and CEO of Village Bank Mortgage Corporation.
The Community Partners Product provides a maximum grant of $7,500 that can be used for a down payment, closings costs, or rehabilitation costs associated with a home purchase. Funding is provided as a 4-to-1 match and homebuyers must contribute at least $1,000.
For Rosanna Richmond, a single mother of two, the dream of buying her first home seemed out of reach until she spoke to a loan officer at Village Bank. “Ms. Richmond was very excited and relieved once she was able to close,” says Lori Vaughn, a program manager for Village Bank’s mortgage division. “She was able to reduce her monthly housing payment by over $300.”
Vaughn added, “Ms. Richmond is a very hard worker who budgeted very well as was evident by the money she had been able to save. The grant rewarded her efforts in the sense that she did not have to come out of pocket as much for the down payment and closing costs.”
Mabry says from a business strategy perspective Community Partners gives Village Bank a specific benefit to offer to a whole new community and market. “From our mortgage company perspective, even if potential borrowers don’t qualify for the grant, we have built a relationship and it’s likely that we can suggest another product.”
Photo: Lori Vaughn and Jerry Mabry, Village Bank Mortgage Corporation
The Community Partners Product is helping shareholders like Village Bank originate new mortgages, reach new customer markets, reduce their loan-to-value, and achieve Community Reinvestment Act compliance goals. It is one of many affordable housing products available to FHLBank Atlanta shareholders seeking to strengthen the communities they serve and grow their businesses.
Maximum subsidy is $7,500.
Funding is provided as a 4 to 1 match.
Homebuyer must contribute at least $1,000.
The homebuyer must have income that is less than or equal to 80% of HUD median income for the area, adjusted for family size.
Home must be located in the Bank’s district, which includes Alabama, the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, and Virginia.
Eligible homebuyers include law enforcement officers, educators, health care workers, and firefighters that are first-time homebuyers or non-first-time homebuyers.
A complete description of Community Partners Product requirements can be found in the Affordable Housing Program Implementation Plan on the Bank’s website. The Federal Home Loan Bank of Atlanta is not a registered investment advisor. Nothing herein is an offer to sell or a solicitation of an offer to buy any securities or derivative products. You should consult your own legal, financial, and accounting advisors before entering into any transaction.