Federal Home Loan Bank Community Investment Program (FHLB CIP)
Down Payment Assistance
Location Served: Texas
Provider: Federal Home Loan Bank of Dallas
Approved Lender: New American Funding – (512) 524-8077
In order to aid members of the community, the Community Investment Program provides favorably priced loans to assist in financing homes for individuals in the area. The programs funds are available for housing-related programs aimed at families or individuals earning up to 115 percent of that particular area’s median income.
The Community Investment Program’s resources are available year-round. Member institutions are qualified to acquire the favorable advances from the Bank by simply making a CIP advance request.
Purposes of CIP Loans
CIP Advances can be used in the following ways:
- To purchase, construct, refurbish, or refinance individual, owner-occupied housing properties that support families with incomes equal to or less than 115 percent of the area’s median income
- To purchase, construct, refurbish, or refinance projects involving multiple units of owner-occupied housing in which over 50 percent of the families living there have incomes equal to or less than 115 percent of the area’s median income
- To purchase, construct, refurbish, or refinance rental properties in which over 50 percent of the tenants renting there have incomes equal to or less than 115 percent of the area’s median income
- To obtain state housing finance agency bonds or mortgage-backed securities that represents pools of loans that could be financed directly with the Community Investment Program’s advances
- To finance low-income housing tax credits or investments in lender consortia, if the underlying mortgages can be financed directly with the Community Investment Program’s advances
- Provide loans for entities that will then lend the funding received to eligible housing projects
- May be used in combination with AHP, FHA, HUD, state and local governments, and secondary market agency programs
- The Community Investment Program may also offer CIP pricing, used to fund affordable housing for qualified households, to members with standby letters of credit and confirmations
- Must be a member of the Bank
- Rate mark-ups are to be agreed upon by members and must be limited to 300 basis points on owner-occupied development and 400 basis points on rental housing development
- Members of the CIP must meet the Bank’s collateral and standard capital stock requirements
- All members must use their own underwriting criteria
- CIP, AHP, EDP, Disaster Relief Program or any other community development loans are not permitted to exceed the lesser of $200 million or 15 percent of the institution’s total assets
- Community Investment Property loans are required to be used for funding mortgage loans that have either closed in the past three months or will be originated in the following three
If you have any additional questions regarding home mortgages, please contact a mortgage expert by filling out the form on the right or calling (512) 524-8077. You can also email Team@CandyBuzan.com.