FHLB MPP Launches Affordable Rate Program

FHLB Cincinnati has launched the Affordable Rate Program (ARP) to users of our Mortgage Purchase Program (MPP). The ARP offers up to 2 percent lower note rates on MPP loans to income-eligible borrowers, making homeownership more affordable to low- and very low-income families.
 
Program details and requirements include:
•    The ARP rate will be up to two percentage points below market rates. Contact our MPP department for current rates.
•    Borrowers must have incomes at or below 80 percent of the FHFA Area Median Income.
•    Properties must be for a primary residence. Second homes are ineligible.
•    Both purchase and refinance transactions are eligible.
•    Participation is limited to members that have received Participating Financial Institution (PFI) approval and have an open Master Commitment Contract through MPP.
•    Subsidy is available on a first come, first served basis.
•    To provide all PFIs an opportunity to participate in the ARP, an initial PFI subsidy cap of $40,000 has been established. The cap may be increased or lifted based on utilization.
•    Subsidies must be disbursed by December 31, 2025.
 
As of today, the FHLB has allocated $5.0 million in subsidy to the ARP. For more information on the program or to participate, please contact our MPP department at mpp@fhlbcin.com