The Raccoon Valley Bank bought the mortgages Friday on three Perry houses as part of the Greater Des Moines Habitat for Humanity Building Blocks Loan Sale Program.
Tod Ellis, chief credit officer for the Raccoon Valley Bank in Perry, said the bank bought the mortgages for $250,000.
“It’s a donation in kind in perpetuity because these mortgages that are made to folks who qualify are at no interest,” Ellis said. “So we basically are funding the mortgages that will allow Habitat to reuse that money to build new houses. Instead of just using monthly payment money, which would take a long time because they’re 30-year mortgages, we basically buy those for no interest, and then they get to use that money to do other projects.”
Rob Nye, director of finance for the Greater Des Moines Habitat for Humanity, said the generous support of lenders such as the Raccoon Valley Bank makes Habitat’s ongoing work possible.
“Without their gracious help, it would take us 20 years to get the money back to build another house,” Nye said. “By their buying that mortgage, we can now go out and build three more houses and help three more people. So it’s a tremendous help to us and a tremendous help to the people out there who are trying to get into a house.”
Omar Padilla, outreach director for the Dallas County Habitat for Humanity, said another Habitat house is under construction in Perry at 1716 Vine St. Once built, the house will be similarly sold to a qualified low-income family, who will buy by means of an affordable mortgage of the kind the Raccoon Valley Bank bought Friday.
Nye said people who buy Habitat for Humanity houses “are very, very motivated to stay in their home.” Habitat homes bring stability to neighborhoods, he said.
“Our pride,” Nye said, “is what it does to a neighborhood when you have, number one, a nice quality, good house there, and then number two, once people buy a house, they stay put. The Des Moines schools have something like a 30 percent turnover. Imagine being a teacher with 30 percent turnover or students who every time they move it increases their likelihood of dropping out. But once they buy a home, they’re set. The community and family impact usually of people getting into homes is tremendous.”
Friday’s purchase of the mortgages follows the Raccon Valley Bank’s $15,000 donation to Dallas County Habitat for Humanity in September.
“Our owners, directors and employees strongly support the continued work of Dallas County Habitat for Humanity,” Raccoon Valley Bank President and CEO Terry Nielsen said in September. “Our bank plans to be a sustaining part of these efforts for years to come.”
