BERGMAN, Ark., Nov. 18, 2009 (GLOBE NEWSWIRE) -- A $4,000 Affordable Housing Program (AHP) grant from the Federal Home Loan Bank of Dallas (FHLB Dallas) and Bank of the Ozarks assisted Daniel Campbell with buying a new home.
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The AHP grant assisted Mr. Campbell with closing costs for a new home in Bergman, Arkansas. Mr. Campbell, a boxing coach, said he learned through one of his students of a program that was available through the Northwest Arkansas Regional Housing Authority (NWRHA). The program utilizes Affordable Housing Program (AHP) grant funds from the Federal Home Loan Bank of Dallas (FHLB Dallas).
"I owned a trailer house and it wasn't nice. It was kind of run down, and I wanted to do something better for myself," Mr. Campbell said. "The grant helped me out a great deal because the hardest part about buying a home is coming up with the down payment, with closing costs and insurance, it can come to several thousand dollars to get into the house."
The grant funds Mr. Campbell received were part of a $67,500 grant that FHLB Dallas awarded to the NWRHA, through Bank of the Ozarks, in 2008. The AHP grant will assist 15 individuals or families with closing costs. It also will assist with costs for homebuyer education classes.
The NWRHA also utilized USDA 502 loan funds and the Mutual Self Help Program, allowing each new homeowner to obtain mortgage financing directly through USDA. The Mutual Self Help Program is a federal program to assist low-income families with homeownership. Participants agree to help each other build their homes and form building cooperatives. Homeowners build "sweat equity" by contributing 65 percent of the construction labor.
"Our partnership with the Federal Home Loan Bank of Dallas and Bank of the Ozarks helps our community by putting families in homes for the first time," said Ken McDowell, Executive Director of NWRHA. "Sometimes, just help with closing costs and homeownership counseling can be the impetus for families to own their own place."
Mr. Campbell, his wife, Annie, and stepson are scheduled to move into their new three-bedroom, two-bathroom home by next week.
"It is exciting to know we were able to help this family achieve their dream of homeownership," said Martie North, Vice President and Director of Community Development at Bank of the Ozarks. "Bank of the Ozarks strives to be a community partner with entities such as the NWRHA in creating homeownership opportunities throughout Arkansas. Through this partnership, this family will be able to enjoy an affordable, brand new energy efficient home for years to come."
Each year, the 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. As of September 30, 2009, FHLB Dallas has awarded $8.4 million to projects within its five-state District, including more than $1.45 million to projects in Arkansas, resulting in the creation or renovation of 247 housing units in the state.
For more information about FHLB Dallas programs, please contact the Corporate Communications Department at 214.441.8445.
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 $67.3 billion as of September 30, 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.
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