- March 24, 2025
- Chris Quintana
Down Payment Assistance from FHLB Dallas Turns Renters into Homeowners
Owning a home is a dream for many, but for first-time homebuyers, the journey can be daunting. Financial institutions like Homewise that provide mortgages to first-time homebuyers know that having money for a down payment is a major hurdle that can hamper the transition from a renter to a homeowner.
Here in New Mexico, the situation is especially challenging. The median New Mexico home price is $330,330, according to Zillow. In the artist mecca of Santa Fe, it’s not uncommon for homes to sell for $600,000 and on up into the millions.
For potential first-time homebuyers in New Mexico — where the median household income of $62,125 (2023 dollars, U.S. Census Bureau) is significantly below the national median household income of $78,538 — those prices present real challenges.
That’s why Homewise is hyper-focused on finding and using down payment assistance programs.
One program that has been there for us consistently is the Homebuyer Equity Leverage Partnership (HELP) grant from the Federal Home Loan Bank of Dallas (FHLB Dallas).
Recognizing and responding to our nation’s challenging housing market, FHLB Dallas increased its funding for HELP grants from $15.5 million last year to $17 million this year.
In addition, in recognition of unaffordable home prices in New Mexico and Texas, FHLB Dallas increased to $25,000 the allowable down payment and closing cost assistance available through HELP in those two states. Grants up to $20,000 are available in Arkansas, Louisiana and Mississippi, the three other states that make up the FHLB Dallas District.
This increase has been a huge positive for our potential homebuyers as roughly 80 percent of our clients are in underserved categories for homeownership, including people of color and individuals with low or moderate incomes. Many are single-household earners.
The HELP grant can provide the extra boost they need to get into a home while our educational programs provide the preparation and groundwork to ensure that these first-time homebuyers can afford to pay their mortgage each month and provide upkeep on their homes.
FHLB Dallas members snapped up the first round of HELP grants very quickly, a testament to the need. Another round of its HELP funding will become available in May. You can learn more about HELP at fhlb.com.
We are grateful to have FHLB Dallas as a funding partner for this important work of making homeownership attainable and affordable.
Author Chris Quintana is the chief lending officer at Homewise.
