HARRISON, Ark., Dec. 3, 2009 (GLOBE NEWSWIRE) -- A $4,500 Affordable Housing Program (AHP) grant from the Federal Home Loan Bank of Dallas (FHLB Dallas) and Bank of the Ozarks helped Seth Chaney obtain an affordable mortgage.
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Mr. Chaney used the grant to cover closing costs on his home in Harrison, Arkansas. For the past three years, Mr. Chaney has rented a home from Arah Dean Turner, who is also his realtor. Mr. Chaney moved to Harrison because he felt there were more agencies that had experience with his disability, Ms. Turner said. Mr. Chaney has cerebral palsy and has been in a wheelchair his entire life.
Because of his limited income, the AHP grant was able to help lower the cost of his home and make it more affordable for him.
"I know that it wouldn't have been possible for him to get his payments where they needed to be without this grant money," Ms. Turner said. "It just makes a big difference."
The grant funds Mr. Chaney received were part of a $67,500 grant that FHLB Dallas awarded to the Northwest Arkansas Regional Housing Authority (NWRHA), through Bank of the Ozarks in 2008. The AHP grant will assist 15 individuals or families with closing costs.
"Thanks to the Federal Home Loan Bank of Dallas and our sponsoring bank, Bank of the Ozarks, we have been able to put disabled individuals in their own home," said Ken McDowell, Executive Director of NWRHA. "Working with the USDA Rural Development Mutual Self Help Housing program with closing costs paid by FHLB of Dallas grant funds, the dream of homeownership has suddenly become reality for these community members."
The NWRHA 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.
"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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