Media Center « Press Releases »

Press Releases

Contact:

Neil Cotiaux, FHLBank of Pittsburgh: 412-288-2851; cell: 412-335-9488

$1 Million in Grants for Lower-income First-time Homebuyers Still Available

PHILADELPHIA, PA, November 24, 2006 — Approximately $1 million in grants remains available to lower-income first-time homebuyers in Greater Philadelphia through the end of the year, the Federal Home Loan Bank of Pittsburgh (FHLBank) announced today.

Available through the First Front Door (FFD) program at more than one dozen area financial institutions, the grants initiative was first announced by U.S. Rep. Chaka Fattah (PA-2) last spring to help address the financing needs of lower-income homebuyers. FFD provides grants of up to $5,000 per family to be used for down payment and closing costs to households at or below 80 percent of the area median income. For 2006, approximately $1 million in funding is still available to assist homebuyers on a first-come, first-served basis.

Through FFD, FHLBank will match a qualified homebuyer's contribution 3-to-1, based on the buyer's need. For every $1 of contribution the buyer makes, the FHLBank will provide $3 in grant assistance, up to a maximum of $5,000. To receive the full $5,000, a homebuyer would need to contribute $1,667. The homebuyer contribution can take the form of savings, a gift, tax refund, inheritance or any other funds accumulated by the homebuyer, as long as it is not a grant, long-term loan (more than five years) or forgivable loan.

Qualified first-time homebuyers can use FFD grants toward down payment and closing costs on owner-occupied homes. These include single-family houses, townhomes, duplexes, condominiums and modular units.

"With the active support of Congressman Fattah, banks, housing counseling agencies, community-based organizations, REALTORS® and others can open the door for first-time homebuyers," said John Bendel, director of Community Investment at FHLBank Pittsburgh. "This critical grant can help individuals and families achieve an American dream they may have never before thought possible."

To see a list of banks offering the FFD program, or for other information, please visit www.firstfrontdoor.com.