Dubuque, Iowa – Homeownership may become more attainable for a growing number of Americans thanks to a collaborative effort between Dupaco Credit Union and the Federal Home Loan Bank of Des Moines (FHLB Des Moines). The two financial institutions are partnering to offer the Mortgage Rate Relief program, a housing affordability initiative designed to lower borrowing costs for income-qualified homebuyers. This program is particularly timely as rising interest rates and home prices continue to challenge prospective homeowners across the country, making the dream of owning a home increasingly demanding to achieve.
The Mortgage Rate Relief program offers a significant benefit: a permanent reduction in mortgage interest rates. Currently, the program provides rates as low as 4.967% APR, up to 1.5% below prevailing market rates. This reduction can translate into substantial savings over the life of a loan, potentially making homeownership a reality for individuals and families who might otherwise be priced out of the market. The initiative specifically targets borrowers at or below 80% of the Federal Housing Finance Agency’s (FHFA) Underserved Areas Data, focusing on communities where housing affordability is a critical concern.
The partnership builds on a successful launch in 2024, where Dupaco was selected to participate and applied more than $9.3 million in grant funds to its members’ home loans. Recognizing the ongoing need for affordable housing solutions, FHLB Des Moines has awarded Dupaco an additional $6 million in funding for 2026, enabling the credit union to assist even more eligible members in purchasing homes. This continued investment underscores the commitment of both organizations to addressing housing affordability challenges within their communities.
Addressing a National Need for Affordable Housing
The need for affordable housing is a pressing issue nationwide. According to data from the National Association of Realtors, the median existing-home price in January 2026 was $389,800, a 5.1% increase from the previous year. Simultaneously, mortgage rates have fluctuated, adding to the financial burden for potential homebuyers. Programs like Mortgage Rate Relief are designed to counteract these challenges by directly reducing the cost of borrowing.
“Every day, we meet members who are working hard to build financial stability for themselves and their families,” said Laurie Von Ah, Senior Mortgage Lending Consultant at Dupaco. “Programs like Mortgage Rate Relief open doors that might otherwise stay closed. Permanently lowering interest rates for eligible borrowers doesn’t just make homeownership more attainable—it creates long‑term savings that strengthen their financial lives well into the future.”
How the Mortgage Rate Relief Program Works
The Mortgage Rate Relief program operates through grant funds provided by FHLB Des Moines. These funds are used to subsidize mortgage interest rates for eligible borrowers. The program is available to homebuyers regardless of their location, offering a nationwide solution to the affordability crisis. To qualify, borrowers must meet specific income requirements and reside in areas designated as underserved by the FHFA. The FHFA’s Underserved Areas Data identifies communities where access to affordable housing is limited.
Dan Mahlum, mortgage programs director at FHLB Des Moines, emphasized the alignment of the program with the organization’s mission. “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,” he stated. FHLB Des Moines is one of eleven regional Banks that make up the Federal Home Loan Bank System, serving 13 states and three U.S. Pacific territories.
Eligibility and Application Process
Interested homebuyers can learn more about the Mortgage Rate Relief program and its eligibility guidelines by contacting Dupaco Credit Union at 800-373-7600 or visiting their website at www.dupaco.com. Dupaco’s mortgage lending team can assess individual circumstances and determine eligibility for the program. The application process involves standard mortgage application procedures, with an additional review to verify eligibility for the rate reduction.
While the initial $25 million in grant funds allocated in 2024 has been fully distributed, the additional $6 million awarded for 2026 provides a renewed opportunity for eligible borrowers to benefit from the program. Dupaco encourages interested individuals to apply promptly, as funding is limited and awarded on a first-come, first-served basis.
Looking Ahead
The Mortgage Rate Relief program represents a proactive step towards addressing the challenges of housing affordability. As of March 2, 2026, the program is actively accepting applications with the new round of funding. Dupaco Credit Union and FHLB Des Moines will continue to monitor the program’s impact and explore opportunities to expand its reach in the future. Those seeking to learn more about future funding opportunities or program updates are encouraged to check Dupaco’s website or contact their mortgage lending team.
This collaborative effort demonstrates the power of community-based financial institutions in addressing critical social and economic issues. By working together, Dupaco and FHLB Des Moines are helping to build stronger, more vibrant communities where homeownership is within reach for more families.
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