DUBUQUE, Iowa–Dupaco Credit Union said it has introduced a new mortgage lending program that provides eligible members a permanent interest rate reduction of one percentage point below its current market rate. 

The special rate is available for eligible homebuyers, regardless of their location, and can only be applied to a new purchase. 

Dupaco said it has partnered with the Federal Home Loan Bank of Des Moines on the program that, in total, will provide $22 million in grant funds to those seeking affordable homeownership. 

‘Significant Demand’

The Mortgage Rate Relief program has already seen “significant demand,” according to AVP-Mortgage Lending Krystal Frederick.

“As we approach prime homebuying season, we’ve already locked members in to receive this special rate,” Frederic said in a statement. “This permanent interest rate reduction is a fantastic opportunity for those eligible for the program; it could save them thousands of dollars in interest over the life of the loan, boosting their financial well-being.”  

Dupaco CCU said the Mortgage Rate Relief program offers homebuyers a special rate of 5.210% APR.  

About the Program

According to the FHLB-Des Moines, the product is designed to make homeownership attainable for borrowers at or below 80% of the Federal Housing Finance Agency’s (FHFA) Underserved Areas Data. 

“The Mortgage Rate Relief product is aligned with our mission and specifically designed to support our members with the goal of improving housing affordability within their local communities,” Dan Mahlum, FHLB Des Moines mortgage programs director, said in a statement.