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Holden, 19 Area Banks, FHLBank Unveil $6 Million Grants Program:
Down Payment, Closing Costs for First-time Homebuyers is Focus

READING, PA, March 21, 2006 —- U.S. Rep. Tim Holden (PA-17), 19 banks in central and eastern Pennsylvania and the Federal Home Loan Bank of Pittsburgh (FHLBank) announced First Front Door, a more than $6 million program to help lower-income first-time homebuyers across the region with down payment and closing costs.

At a housing and community revitalization forum in Bern Township, Rep. Holden encouraged first-time homebuyers to claim funds under the first-come, first-served program as soon as possible. The program is being offered in Delaware, Pennsylvania and West Virginia.

"First Front Door provides a compelling reason for those who are renting to seriously consider homeownership," said Rep. Holden. "At least 1,000 homebuyers are expected to benefit from this program in 2006, and we want as many of them as possible to buy homes in our region."

In central and eastern Pennsylvania, First Front Door funding is being distributed by the FHLBank through these community banks:

• Bank of Hanover & Trust Company
• Bank of Lancaster County
• Berkshire Bank
• Citizens Bank of Pennsylvania
• Commerce Bank N.A.
• East Penn Bank
• Farmers and Merchants Trust Company
• First National Bank in Fleetwood
• Fulton Bank
• Keystone Nazareth Bank and Trust
• Lebanon Valley Farmers Bank
• Leesport Bank
• National Penn Bank
• Northwest Savings Bank
• Pennsylvania State Bank
• Phoenixville Federal Savings and Loan Association
• PNC Bank
• Sovereign Bank
• Susquehanna Bank

Through the 19 participating banks, the FHLBank will contribute $3 for every $1 contributed by the homebuyer, for a maximum of $5,000 per recipient, based on need. Member banks will also make measurable concessions to the affordability of the house such as waived or reduced fees or points or below-market rates. Approval of participant paperwork is completed by the FHLBank within seven business days.

"First-time homebuyers represent the cornerstone of a community," declared Al Boscov, former chairman of Boscov's department stores and founder of Our City Reading. "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."

First Front Door provides down payment and closing cost assistance for first-time homebuyers with incomes at or below 80 percent of their area's median income. Under First Front Door, an individual is considered a first-time homebuyer if he or she has not owned a home within the past three years, or owned a home only while married but not as a single person within the past three years. Homes that qualify for purchase with FFD assistance include single-family homes, townhomes, duplexes, condominiums and modular units.

First Front Door's legacy program, the FHLBank's Home Buyer Equity Fund, provided more than $4 million to approximately 4,000 first-time homebuyers prior to the adoption of the more streamlined FFD program this year.

"First Front Door represents a step up in our commitment to first-time homebuyers," remarked Eric F. Dickerson, deputy director of Community Investment at the FHLBank and also a speaker at today's event. "FFD offers larger grants per individual as well as faster turnaround on both grant approvals and funding disbursement."