The Strong Communities Fund includes programs that make grant funds available to member financial institutions to assist owner-occupant homebuyers with down payment and closing cost assistance. Funds may also be used to assist these households with property rehabilitation and homeownership education that is part of the cost of a home purchase. Assisted households must be at or below 80 percent of the area median income.
Homeownership Fund: FHLB Des Moines created this fund in 2013 and that year awarded $2 million to 135 member banks and credit unions who will provide eligible households down payment and closing cost assistance for the purchase of a home. This fund will be offered again in 2014, with application available in September 2014. Funds can be used in rural or urban locations, and funds are available to first-time and non-first-time homebuyers. Maximum subsidy award is $15,000 to a member and maximum award to a household is $5,000. Members have two years to award the individual subsidies. See the Homeownership Fund for details about this program.
Native American Homeownership Initiative: In 2014, FHLB Des Moines will make $300,000 available to provide down payment and closing cost assistance to eligible Native American households for the purchase of a home. Members may enroll on a first-come first-served basis beginning January 2, 2014. Maximum subsidy award to a household in this program is $10,000. See the Native American Homeownership Initiative for details about this program.
For more information about these programs, see the Additional Resources below, or call the Community Investment Department at 800.544.3452, ext. 1173.