FirstBank has pledged to invest $10 million in The Housing Fund for the organization’s shared equity program for affordable housing. The Shared Equity Program enables sustainable and ongoing affordable housing solutions through renewable single-family homes.
More details on the FirstBank investment
FirstBank has pledged to invest $10 million in The Housing Fund for the organization’s shared equity program for affordable housing. The money will fund home loans made to low-to-moderate income people in majority-minority census tracts for Tennessee families.
“At FirstBank, one of our top priorities is community, and we know the importance of giving back to the communities we serve,” said Chris Holmes, President and CEO of FirstBank. “FirstBank fully supports the mission and vision of the Housing Fund, and we are grateful for the opportunity to partner with them through their shared equity program, which will go a long way in providing the people of Tennessee with stability and financial security.”
“We are grateful for FirstBank’s partnership and this generous investment,” said Marshall Crawford, President and CEO of The Housing Fund. “Our ultimate goal is to break the cycle of poverty for Tennessee families, and we know that means creating access to wealth-creating opportunities through homeownership. FirstBank’s investment will play a major role in helping us achieve our goals by raising additional capital, preserving and maintaining existing affordable housing, and creating new affordable housing options in Nashville and across the state.
The Shared Equity Program enables sustainable and ongoing affordable housing solutions through renewable single-family units. It is designed for homes to be purchased and eventually resold to low to middle income individuals and families, constantly renewing the stock of affordable housing available.
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“We are privileged to see firsthand the tremendous positive impact owning a home can have on an individual or family,” said Calvin Dunning, Vice President, Fair Lending and CRA for FirstBank. “The Housing Fund has been instrumental in creating affordable and sustainable housing solutions. FirstBank is committed to doing its part to help ensure our neighbors have access to these ownership opportunities.
Homebuyers participating in the program are only required to provide 1% of the purchase price, with 25% coming from the Housing Fund and the remaining 74% coming from a FirstBank loan. Once the owner is ready to move on, they can only sell it to another low to moderate income qualified buyer affiliated with the Housing Fund. At closing, the Housing Fund recovers its 25% contribution at 0% interest. Any appreciation in value is shared between the seller and The Housing Fund, which then reinvests that money in the home by helping the next buyer with a 25% contribution towards their purchase.
About the Housing Fund
Since its inception in 1996, The Housing Fund has helped more than 3,900 first-time homebuyers receive more than $29 million in down payment assistance loans, and provided more than $60 million in financing for helping individuals and organizations purchase, rehabilitate or build homes for low- and middle-income families. THF has loaned over $89 million, which has leveraged over $500 million in private financing for over 6,000 units.
Nashville-based FirstBank, a wholly-owned subsidiary of FB Financial Corporation (NYSE: FBK), is the third-largest bank headquartered in Tennessee, with 82 full-service branches in Tennessee, south-central Kentucky, Alabama and Northern Georgia, and a national mortgage firm with offices throughout the Southeast. The bank serves five of Tennessee’s major metropolitan markets and, with total assets of approximately $11.9 billion, has the resources to provide a full range of financial services and products.