TUPELO, Miss., Aug. 17, 2012 (GLOBE NEWSWIRE) -- Living conditions for Tamika Perry and her three children in their two-bedroom, rented apartment had become cramped even before she first began to think about buying a house.
Although she wasn't sure how she would be able to make it happen, Ms. Perry decided it was time for her children to have a home of their own with room to grow.
She turned to the city of Tupelo after friends told her about the city's homebuyer program. The Neighborhood Development Corporation (NDC) provides educational assistance in support of the revitalization and redevelopment of deteriorating neighborhoods in Tupelo and throughout Lee County.
NDC has received Affordable Housing Program (AHP) grant funds from the Federal Home Loan Bank of Dallas (FHLB Dallas) and BancorpSouth Bank in Tupelo that provide low-income, first-time homebuyers with down payment and closing cost assistance. Peggy Woods, community coordinator for the city, manages the NDC program and facilitates applications for the grant.
Each year, FHLB Dallas returns 10 percent of its profits in the form of AHP grants that are distributed through its member institutions, such as BancorpSouth Bank. AHP assists in the development of affordable, owner-occupied and rental housing for very low- to moderate-income households located primarily within FHLB Dallas's five-state District of Arkansas, Louisiana, Mississippi, New Mexico, and Texas.
"BancorpSouth works continuously to help meet the affordable housing needs in the communities we serve," said BancorpSouth Bank Vice President Chip Ashford. "With the help of the AHP funds we have been able to help several families achieve the dream of homeownership."
Participants are required to attend eight hours of homebuyer education classes where they learn about the financial requirements associated with buying a house, how to work with a realtor, how to apply for and receive a mortgage, and how to create and adhere to a budget.
Ms. Perry attended the classes and worked on improving her credit rating in order to qualify for a mortgage. "It was hard work, but it was so worth it," she said, "and being able to qualify for the grant to cover the down payment and closing costs really helped me."
For Ms. Perry, an assistant director at the day care center where she has worked for seven years, attending the homebuyer classes, getting approved for a mortgage and purchasing her home took about six months. She and her children are now well-settled in their 1,700-square-foot, three-bedroom, two-bath home in Tupelo. "My mortgage payment is actually about the same as my rent used to be," she added.
Attending the homebuyer classes and becoming a homeowner has caused her to become more mature, Ms. Perry said. "Ms. Peggy (Wood) gives you a reality check," she said. "I learned about the responsibilities of being a homeowner, including how important it is that I stick to a budget so that I am able to pay for my mortgage and the other things that come with owning a home."
She and her children, Fabian, 11; Tyson, 9; and Paige, 3; enjoy working together to plant flowers in their yard and the kids especially love having their own fenced back yard. "We live in a safe neighborhood now and my children have other kids they can play with," Ms. Perry said.
She is so sold on the NDC and AHP grant programs that she's persuaded her mother and several friends to apply. She even returned to one of Ms. Wood's classes recently to tell current attendees about her experience.
About the Federal Home Loan Bank of Dallas
The Federal Home Loan Bank of Dallas is one of 12 district banks in the FHLBank System created by Congress in 1932. FHLB Dallas, with total assets of $34.7 billion as of June 30, 2012, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to more than 900 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico, and Texas. For more information, visit the FHLB Dallas website at fhlb.com.
The Federal Home Loan Bank of Dallas logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3013