FHLBank Boston Promotes Affordable Homeownership Through Permanent Rate Buydown Program

Federal Home Loan Bank of Boston (FHLBank Boston) is pleased to announce the launch of the Permanent Rate Buydown product, which is designed to make homeownership more attainable for lower-income households earning up to 80% of area median income.

FHLBank Boston’s Permanent Rate Buydown Product

By using the Permanent Rate Buydown product, New England banks and credit unions that are members of FHLBank Boston can reduce the mortgage interest rates paid by income-eligible borrowers by up to 2%. The product is available through FHLBank Boston’s Mortgage Partnership Finance® (MPF®) Program, which purchases residential mortgages from FHLBank Boston member financial institutions.

“High housing costs coupled with sharply higher interest rates have made it increasingly difficult for lower-income borrowers to afford a home in many New England communities. The new Permanent Rate Buydown product joins the other programs the Bank offers that make homeownership attainable and more affordable for eligible borrowers. These programs are closely aligned with FHLBank Boston’s overall mission of supporting affordable housing opportunities throughout New England,” said FHLBank Boston President and Chief Executive Officer Timothy J. Barrett.

“Mortgage Partnership Finance” and “MPF” are registered trademarks of the Federal Home Loan Bank of Chicago.