Additional Planned Voluntary Contributions Reopen Interest Rate Buydown Product for a Limited Time

Last Updated on July 6, 2026

FHLB Des Moines has announced at least $7.2 million in additional voluntary funding for Mortgage Rate Relief in 2026, expanding opportunities for mortgage lending by permanently reducing interest rates by up to 1.5 percentage points for eligible borrowers.

Beginning July 6, 2026, Mortgage Rate Relief will be available to FHLB Des Moines Participating Financial Institutions (PFIs) with an active MPF® Traditional Master Commitment. Delivery commitments will be accepted on a first-come, first-served basis until funding is exhausted or Sept. 30, 2026, whichever comes first.

This product supports borrowers with incomes at or below 80% Area Median Income (AMI) according to 2026 Federal Housing Finance Agency’s (FHFA) Underserved Areas Data. Mortgage Rate Relief loans can additionally utilize recent MPF Traditional expanded eligibility enhancements, including delivering loans up to 97% Loan-to-Value on select Fannie Mae and Freddie Mac products, eligibility for single-width manufactured homes and more. 

In March 2026, FHLB Des Moines committed an initial $25 million to Mortgage Rate Relief to invest in solutions that help members meet the needs of their communities and ensure more families have access to affordable, sustainable homeownership. This additional funding of at least $7.2 million is part of an increased contribution FHLB Des Moines announced June 17, 2026.

“This contribution represents a deliberate decision by the board of directors to deploy additional resources to meet pressing housing needs in our region,” said Kris Williams, president and chief executive officer of FHLB Des Moines. “While this level of funding is not the new standard moving forward, it underscores our commitment to stepping up when our communities need us most.”

Read the full press release here.