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Hart, FHLBank Unveil $6 Million Program for First-time Homebuyers: First Front Door to Provide Grants for Down Payment, Closing Costs

AMBRIDGE, PA, February 13, 2006 — U.S. Rep. Melissa Hart (PA-4) and officials of the Federal Home Loan Bank of Pittsburgh (FHLBank) announced First Front Door (FFD), a more than $6 million program to help lower-income first-time homebuyers with down payment and closing costs.

At an affordable housing information session sponsored by Dominion Full Gospel Church and featuring U.S. Secretary of Housing and Urban Development Alphonso Jackson, Rep. Hart urged first-time homebuyers to claim funds quickly under this first-come, first-served program. The program is being offered by FHLBank member financial institutions in Delaware, Pennsylvania and West Virginia.

"First-time homebuyers represent the cornerstone of a community," declared Rep. Hart. "Building equity in a first home empowers individuals and families to build wealth for future life events — including moving up in the housing market — while contributing to a community's property values, stability and social life. I strongly urge qualified first-time homebuyers to take advantage of this wonderful program."

"First Front Door provides a compelling reason for those who are renting to seriously consider homeownership," added John R. Price, president and chief executive officer of the FHLBank of Pittsburgh and a speaker at today's event. "At least 1,000 homebuyers are expected to benefit from the more than $6 million in grants we will extend in 2006. We encourage prospective homeowners to apply as early as possible."

The FHLBank will contribute $3 for every $1 contributed by the homebuyer, for a maximum of $5,000 per recipient, based on need. In addition, the 17 local financial institutions taking part in the program are committed to making measurable concessions to the affordability of a house, such as waived or reduced fees or points or below-market rates.

In western Pennsylvania, First Front Door funding is being distributed through these 17 banks: Brentwood Bank, Compass Federal Savings Bank, Dwelling House Savings and Loan Association, ESB Bank, First Federal Savings and Loan of Greene County, First National Bank of Pennsylvania, Irwin Bank and Trust Company, Laurel Savings Bank, National City Bank of Pennsylvania, NexTier Bank, Northwest Savings Bank, Peoples Home Savings Bank, PNC Bank, Standard Bank, Union Building and Loan Savings Bank, Washington Savings Association and West View Savings Bank. Prospective homebuyers who want to know more about First Front Door, or want to see if they are eligible, should visit www.firstfrontdoor.com and arrange a meeting with any participating bank.

"First Front Door represents a step up in our commitment to first-time homebuyers," remarked John Bendel, the FHLBank's director of Community Investment. "FFD offers larger grants per individual and faster turnaround on both grant approvals and funding disbursement. We believe it is the next logical step in the growth of this important program."

First Front Door's legacy program, the FHLBank's Home Buyer Equity Fund, provided nearly $15 million in funding to more than 4,000 first-time homebuyers prior to the introduction of the more streamlined program this year. The legacy program was begun in 1997 and concluded in 2005.