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Contact:
Neil Cotiaux, FHLBank of Pittsburgh, 412-288-2851, cell: 412-335-9488
Trish Reilly-Hudock, U.S. Rep. Tim Holden, 202-225-5546

CONGRESSMAN HOLDEN, 19 AREA BANKS, FHLBANK UNVEIL $6 MILLION GRANT PROGRAM: 'FIRST FRONT DOOR' TO HELP WITH FIRST-TIME DOWN PAYMENT, CLOSING COSTS

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) today announced a more than $6 million program called First Front Door that will help lower-income first-time homebuyers across the region with down payment and closing costs.

Appearing at a housing and community revitalization forum in Bern Township, 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.

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 and Susquehanna Bank. These 19 institutions are regional members of the FHLBank cooperative system that provides private funding to nearly 340 financial institution members for affordable housing and community and economic development.

"First Front Door provides a compelling reason for those who are renting to seriously consider homeownership," said Congressman 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."

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

Up to $5,000 now available per homeowner

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.

The homebuyer must successfully complete homeownership counseling that addresses topics like creditworthiness, household budgeting and home maintenance. Buyers must also receive counseling on predatory lending. Further, the buyer must live in the new home for at least five years in order to keep the full amount of the grant.

Who qualifies?

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.

Legacy program reaches 1,000 mark

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."

Consumer contacts

Prospective homebuyers should contact any of the 19 participating banks in their area.

The FHLBank of Pittsburgh is a $73 billion institution with nearly 340 financial institution members across Delaware, Pennsylvania and West Virginia. The FHLBank System uses private capital distributed through member financial institutions to assure reliable, low-cost credit and grants in support of housing and community development. Working with nonprofit housing advocates, homebuilders, REALTORS© and others, the FHLBanks serve as a catalyst to build thriving neighborhoods.