SANTA FE, N.M., April 15, 2010 (GLOBE NEWSWIRE) -- A 54-year-old Santa Fe man is enjoying a long-held dream of homeownership thanks in part to a $5,000 Homebuyer Equity Leverage Partnership (HELP) grant from the Federal Home Loan Bank of Dallas (FHLB Dallas) and First National Bank of Santa Fe (FNBSF).
Stephen Newhall moved into his 892-square-foot Santa Fe condo in late November. "That may sound like it's small to some people," he said, "but when you consider that for 12 years prior to that I was living in a small, funky, converted attic, it's more than enough space."
After trying for years to save enough money to make a down payment and pay other expenses related to buying a house, Mr. Newhall finally was able to save some cash from a retirement plan to pay part of the down payment. The HELP grant he received from FHLB Dallas and FNBSF made up the balance.
In 2009, FHLB Dallas set aside $2 million of its annual Affordable Housing Program (AHP) funds for HELP in order to assist income-qualified, first-time homebuyers with down payment and closing costs. By September, members had exhausted the HELP funds and FHLB Dallas made a special, one-time, additional allocation of $1.5 million, outside of the AHP funds, for HELP II in an effort to continue assisting its members in supporting their communities. Each HELP recipient is eligible to receive $5,000. The amount may be increased up to $7,000 if a member financial institution or another mortgage lender contributes at least $350 toward costs associated with providing the mortgage to the homeowner.
Mr. Newhall learned about the HELP grant from Homewise, a private nonprofit agency in Santa Fe that promotes affordable homeownership for low- to moderate-income homebuyers through financial counseling and educational classes. Homewise, which partners with FNBSF, assists clients in securing various types of financial assistance that may be available. Tina Knaut, vice president of lending, and home purchase director for Homewise, said the agency's partnership with FNBSF allows it to help two homebuyers a month with HELP grant funds. During its most recent fiscal year, ending April 1, Homewise clients received a total of $105,000 in HELP grants.
FNBSF Vice President Betty Vega said the bank started working with HELP grants four years ago and has given out about $200,000 to help individuals buy homes during that time. "We are glad for the opportunity to have helped Mr. Newhall with down payment assistance to purchase his home," Ms. Vega said. "The partnership with Federal Home Loan Bank of Dallas and Homewise Inc. helps provide First National Bank of Santa Fe with an innovative way to make a positive difference in people's lives."
Mr. Newhall, who manages Rob and Charlie's bike shop in Santa Fe, where he has worked for 17 years, settled in Santa Fe in 1991 by chance. He stopped in Santa Fe to visit his sister on his way to the West Coast. He liked the city so much that he never left. Homeownership, he said, has given him a sense of satisfaction because he's building equity in something he owns. But the spaciousness of his new home is a particular joy. "There's plenty of room for my bikes."
For more information about FHLB Dallas programs, 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 $65.1 billion as of December 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.
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