Habitat for Humanity® Advance Rate Discount

A source of liquidity to build the mortgage lending capacity of Habitat for Humanity (Habitat) affiliates and support affordable homeownership in our communities. FHLB Des Moines has committed $100 million in total advances for this initiative. 

Supporting Habitat for Humanity® and Affordable Housing

As part of our affordable housing mission, FHLB Des Moines is offering 5-year, 0% rate Habitat for Humanity Advances to member institutions that purchase or originate below-market residential mortgage loans from Habitat affiliates and hold them for investment on their balance sheet. This source of liquidity will help build the mortgage lending capacity of Habitat for Humanity to serve additional low- to moderate-income homeowners and will generate community partnerships between our members and their local Habitat affiliates.

Eligibility

Habitat for Humanity Advances cannot exceed the unpaid principal balance of Habitat mortgages held by the member at the time of application. Habitat mortgages are defined as below-market whole residential mortgages originated on behalf of a Habitat for Humanity homebuyer by either: (1) a member or (2) a Habitat affiliate and subsequently purchased by a member. Habitat affiliates and homebuyers do not have to reside in the Bank’s district.

Get Started

Reach out to your local Habitat affiliate to learn more about partnering with them to purchase or originate below-market residential mortgage loans for Habitat homeowners. If you already have Habitat mortgages on your balance sheet, work with your partnering Habitat affiliate to complete the joint application now.

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Habitat for Humanity Advance FAQ

• What type of Habitat loans are eligible under this program?

  Whole residential mortgage loans in which the underlying borrower is a Habitat homeowner.

  Ineligible loans:

  • Construction loans with Habitat affiliates or any other loans in which the borrower is not a Habitat homeowner
  • Participations in loan pools with a Habitat affiliate
  • Loans that a member services but does not hold the unpaid principal balance on their balance sheet

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• Are existing Habitat mortgage loans eligible for this new program?

  Yes. If your institution has previously purchased or originated below market whole residential mortgage loans from a Habitat affiliate, you can apply for a Habitat advance in an amount up to the unpaid principal balance of those existing loans held on your balance sheet.

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• Are anticipatory Habitat mortgages purchases or originations eligible for this new program?

  No; the Habitat loans must already be on the member institution’s balance sheet to apply for the Habitat advance. Anticipatory purchases or originations are not currently eligible under the program.

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• Does this type of advance reduce availability of the Community Investment Advance (CIA) $20 million maximum per member?

  No. This is a separate and distinct member limit unrelated to the CIA maximum limit.

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• Does an application need to be submitted for each individual Habitat mortgage purchased or originated by the member?

  No. An application can be submitted for a group of loans purchased or originated by the member. This is preferred over a loan-by-loan application process, if possible. The loan attachment to be completed with the application provides for 25 loans to be listed. If members have more than 25 loans, simply expand the spreadsheet, as needed. Members are allowed to provide alternative documentation other than the provided loan attachment template as long as all data points requested are provided.

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• If using the loan template provided by FHLB Des Moines, should I provide the Excel version or a PDF version when submitting my Habitat application?

  Please provide the Excel version so that we can verify all calculations within the attachment.

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• Who needs to sign the Habitat advance application?

  The application must be signed by an authorized advance representative at the member institution along with the CEO, CFO, Executive Director, or equivalent at the partnering Habitat affiliate.  

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*Applications are funded on a “first-come, first-served” basis, subject to the availability of funds. Habitat Advances are subject to the terms and conditions contained in the Bank’s Member Products Policy. Disbursement of advance funds remains subject to the Bank’s normal credit and collateral requirements. In addition, an approved application is not a reservation of funds.