The familiar click of a key in the door has taken on new meaning for 112 Oklahoma families. They arent just opening any door. They are opening the door to their very own home.
These families realized their dream of homeownership through creative partnerships and the Affordable Housing Program (AHP) of the Federal Home Loan Bank (FHLBank). The program is targeted to serve low and moderate income families.
BancFirst , an FHLBank member, made application for grant funds through the AHP and collaborated with Rural Enterprises of Oklahoma, Inc., (REI) and USDA Rural Development. REI offers the Employer-Assisted Housing (EAH) Incentive and USDA Rural Development provides the 502 Direct Loan Program.
A portion of the loans were made by BancFirst while others were made through USDA Rural Development, and in conjunction with the EAH Incentive program of REI. The EAH program provides employers the opportunity to develop a benefit plan to help eligible employees become homeowners. REI utilized the AHP funds to match the employers benefit up to $2,500 per family or individual.
USDA Rural Developments 502 Direct Loan Program provides an avenue for the low- and very low-income households in rural areas to secure a loan. Borrowers with a household income of 80 percent and below the average median are eligible to apply under the program.
The 112 families served through the AHP program and participating borrowers had an average annual income of $26,622.
We appreciate the FHLBanks program and the partnerships that made it possible to assist so many borrowers, said John Howard, BancFirst Mortgage Division President. Along with food, shelter is perhaps the most basic human need but it goes further than that. Homeownership offers a stable, safe environment, instills family pride, encourages financial responsibility and positively affects the community as well.
The 12 FHLBanks are an essential source of stable, low-cost funds to financial institutions for home mortgage, small business, rural and agricultural loans. With their members, the FHLBanks represent the largest source of home mortgage and community credit.
The FHLBank System allows member institutions to remain active lenders, in all economic cycles, to help their local economies grow.
REI is a statewide economic development firm with offices in five locations. Visit www.ruralenterprises.com for more information about available housing programs and other services offered by the organization.