Affordable Homeownership Gains Traction as Dupaco Credit Union Expands Mortgage Relief Program
Dubuque, Iowa – In a move aimed at easing the burden of rising housing costs, Dupaco Credit Union is bolstering its partnership with the Federal Home Loan Bank of Des Moines (FHLB Des Moines) to expand access to affordable homeownership. The collaborative effort centers around the Mortgage Rate Relief program, an initiative designed to lower borrowing costs for income-qualified homebuyers. The program offers a significant reduction in mortgage interest rates, potentially making homeownership a reality for those previously priced out of the market. This comes at a time when housing affordability remains a critical concern across the United States, with many prospective buyers struggling to navigate high interest rates and limited inventory.
The Mortgage Rate Relief program, initially launched in 2024, provides eligible homebuyers with a rate reduction on their mortgage, currently offering rates as low as 4.967% APR as of March 2, 2026, according to Dupaco Credit Union. This represents a potential reduction of up to 1.5% below current market rates. The program is available to borrowers regardless of location, focusing on those at or below 80% of the Federal Housing Finance Agency’s (FHFA) Underserved Areas Data. This targeted approach aims to address disparities in homeownership opportunities and promote equitable access to housing.
Addressing a Critical Need for Affordable Housing
The partnership between Dupaco and FHLB Des Moines reflects a growing recognition of the need for innovative solutions to address the affordable housing crisis. According to the FHLB Des Moines, the organization serves 13 states and three U.S. Pacific territories, working with a diverse range of financial institutions including community and commercial banks, credit unions, and insurance companies. The Mortgage Rate Relief program is supported by $25 million in grant funds, demonstrating a substantial commitment to increasing housing affordability. Dupaco has already applied over $9.3 million of these funds to its members’ home loans since the program’s inception, and has been awarded an additional $6 million in funding for 2026 to further expand its reach.
“Programs like Mortgage Rate Relief open doors that might otherwise stay closed,” said Brian Henneger, VP, Mortgage Lending at Dupaco’s Mineral Point Rd branch in Madison, Wisconsin. “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.” This sentiment underscores the program’s focus on not only facilitating initial homeownership but too fostering long-term financial stability for borrowers.
How the Mortgage Rate Relief Program Works
The Mortgage Rate Relief program is designed to be accessible to a broad range of homebuyers. Eligibility criteria are centered around income levels, specifically targeting borrowers at or below 80% of the FHFA’s Underserved Areas Data. This data identifies areas with historically lower rates of homeownership and limited access to credit. The program provides a permanent reduction in the mortgage interest rate, offering a significant and lasting benefit to eligible borrowers.
Dan Mahlum, FHLB Des Moines Mortgage Programs Director, emphasized the alignment of the program with the organization’s mission. “This partnership strengthens our ability to support our members as they work to address housing affordability challenges and meet the needs of their customers,” Mahlum stated. The program’s structure allows for a direct and impactful reduction in borrowing costs, making homeownership more financially feasible for a wider segment of the population.
Impact and Future Outlook
The initial success of the Mortgage Rate Relief program has demonstrated its potential to address the challenges of affordable housing. The $9.3 million already allocated to Dupaco members highlights the program’s immediate impact. The additional $6 million awarded for 2026 signals a continued commitment to expanding the program’s reach and assisting even more eligible homebuyers.
Krystal Frederick, AVP, Mortgage Lending at Dupaco, noted the credit union’s dedication to personalized financial solutions. “At Dupaco, we work one-on-one with our members, uncovering ways to save them money,” Frederick said. “We’re thrilled to offer the Mortgage Rate Relief program, which can reduce mortgage interest rates for qualified homebuyers. This program strengthens our commitment to supporting our members’ financial well-being.” This individualized approach underscores Dupaco’s commitment to serving its members’ unique financial needs.
Understanding the Federal Home Loan Bank System
The Federal Home Loan Bank System, of which FHLB Des Moines is a part, plays a crucial role in supporting housing finance across the United States. FHLB Des Moines is one of 11 regional Banks that comprise the system, serving a broad network of financial institutions. These banks provide funding and other resources to their member institutions, enabling them to offer affordable housing options to their communities. The Mortgage Rate Relief program is a direct result of this collaborative effort, leveraging the resources of the FHLB system to address a critical national need.
The program’s success hinges on continued collaboration between institutions like Dupaco and FHLB Des Moines, as well as ongoing efforts to address the systemic challenges that contribute to housing affordability issues. Factors such as limited housing supply, rising construction costs, and stagnant wages all play a role in making homeownership increasingly difficult for many Americans. Initiatives like the Mortgage Rate Relief program offer a tangible step towards mitigating these challenges and expanding access to affordable housing.
Those interested in learning more about the Mortgage Rate Relief program and its eligibility guidelines are encouraged to contact Dupaco at 800-373-7600 or visit www.dupaco.com.
The next update regarding the Mortgage Rate Relief program is expected in the fourth quarter of 2026, when FHLB Des Moines will assess the program’s impact and determine future funding allocations. We encourage readers to share this information with anyone who may benefit from this valuable resource and to engage in the conversation about affordable housing solutions in their communities.