2010 Native American Homeownership Initiative

Native American Homeownership Initiative Funds Available Beginning
January 4, 2010

Effective January 4, 2010, FHLB Des Moines will allocate $1 million of its annual Affordable Housing Program contribution to members to help eligible Native American households purchase single family owner-occupied properties.

Enrollment begins January 4, 2010 and funds will be available on a first come, first served basis until December 31, 2010. Each member may reserve up to $50,000 at a time for up to 90 days. Members with an allocation of NAHI funds from any previous year must disburse those funds before they can reserve funds in the current program. Funds not disbursed at the end of 90 days will be made available to all members for reservation.

If you have any questions about the program, please contact Evelyn Bengtson at 800.544.3452, ext. 1064.

Please review the updated Program Guidelines for 2010.

Important changes for 2010 include:

• Assistance will be provided to income eligible households that include an enrolled member of a federally recognized tribe. At least one of the purchasers of a residence must be an enrolled member of the tribe. To verify eligibility, the Bank will require that a copy of the eligible household member’s tribal enrollment card be submitted with the Certification & Draw Request Form.
   

• Eligible households may purchase a residence outside of a Native American Service Area.
   

• Owner-occupied units must be located within the Bank’s five-state district (Minnesota, North Dakota, South Dakota, Iowa, and Missouri).
   

• In all cases an assisted household may not own, or be an investor in, another residence even if that residence is rented.
   

• Effective October 1, 2009 amendments to Regulation Z established a new class of “higher priced mortgage loans” to consumers. For these higher priced mortgage loans certain prohibitions apply including balloon payments within the first seven years of a borrower’s loan and prepayment penalties, except under certain conditions. The rules also require that lenders verify the borrower income and assets relied on to make the mortgage payment and provide for escrow of tax and insurance on first mortgage liens. Any residential mortgage that does not comply with anti-predatory lending laws, which would include this new regulation, will be ineligible to be used with a NAHI grant. Please see the Program Guidelines and Instructions for Completing the Certification & Draw Request for guidance.

Important: Any member funding a 2009 NAHI commitment between January 1, 2010 and March 31, 2010 must utilize the 2009 program guidelines and submit the 2009 Certification & Draw Request Form. For 2009 forms, click here.

Please see the AHP Homeownership Forms page for additional resources, documents and forms for this program. This includes:

• Retention Agreement (Deed Restriction) for loans not made on Tribal lands
   

• Subordination Agreement for subordination of Retention Agreement
   

• Income Determination Guidelines for Owner Occupied Projects and Calculation of
  Income Worksheet for calculation and certification of borrower household income
   

• Forms for recapture of subsidy

Income Guidelines and Purchase Price Limits

• HUD Income Guidelines

• MRB Income Limits

• NAHASDA Income Limits

• Maximum Purchase Price Limits