New homeowners get grant help from The Callaway Bank

By Taylor Malottki

Home buyers with low to moderate incomes are eligible for a grant from The Callaway Bank to help cover upfront costs when purchasing a home.

A program through the Federal Home Loan Bank of Des Moines offers grant funding to banks that provide lending for first-time home buyers. After The Callaway Bank qualified for the grant, it combined its own funds with the initial grant to offer home buyers a grant for up to $2,000 - which would help cover initial costs related to purchasing a home, such as inspections and titles, according to a bank press release. With this grant, the bank has an overall funding of $20,000 and is able to provide grant funding for 10 home buyers.

Mike Hill, the chief financial officer for The Callaway Bank, reiterated that the grant is designed to help defray the costs that come to new home owners by easing the burden for those who qualify for the program.

"We're glad we're able to offer this grant to encourage home ownership in our community," Hill said. "Getting money into our community that might not otherwise be there is good for a lot of people."

Eligible participants must make less than 80 percent of the median household income for their area. The median household income for Callaway County, according to 2009-13 census data, is $47,964.

With this grant, the homes up for purchase can have a maximum value of $265,158. However, the grant has also been applied to homes that have not been near that much in the past, Hill said. The Federal Home Loan Bank has other restrictions which may also affect the eligibility of applicants. Those curious about further restrictions and their eligibility for the program can contact Ken Neimeyer, Brian Hughes or Carole Reynolds at The Callaway Bank at (573) 592-6386.

This is the second time since 2013 the bank has offered grant assistance to new homeowners. The first grant helped cover the closing costs for six Mid-Missouri homeowners.