By Stacy Swimp
For many Black American first-time homebuyers in Baltimore, owning a home feels impossibly expensive. This is a result of history: for generations, discriminatory practices prevented Black families from building wealth through property. Fortunately, the Federal Home Loan Bank (FHLBank) of Atlanta offers grants that partner with local banks to provide down payment help, directly fighting this unfair history.
Credit: Unsplash/ Scott Webb. Headshot photo : Courtesy photo
The beginning: Stabilizing America’s housing
The FHLBank System was created during the Great Depression by President Herbert Hoover in 1932 (FHLBank Atlanta, n.d.a). Back then, many banks that gave out home loans were failing. The FHLBank’s main job was to provide emergency funding to these local lenders. This kept the money flowing for home loans and helped prevent people from losing their homes.
Today, there are 11 regional FHLBanks. The FHLBank of Atlanta serves Maryland and is owned by its member banks and credit unions.
From emergency aid to community investment
The FHLBank’s role changed dramatically in 1989. A new law required every FHLBank to take 10 percent of its yearly profits and put that money into an Affordable Housing Program (AHP) This made the FHLBanks major supporters of affordable housing.
The AHP provides grants through member financial institutions. While the FHLBank grants are not exclusively for Black residents (they are open to all qualifying low-to-moderate-income first-time homebuyers), they are a crucial tool in the national effort to address the racial homeownership gap.
How these grants target the racial gap
The AHP grants act as a tool for fairness by attacking the specific money problems created by past discrimination, like redlining.
- Breaking the Down Payment Barrier: The biggest obstacle for Black homebuyers is the lack of savings for a down payment—a result of being locked out of generational wealth for decades. The AHP provides non-repayable grants (often up to $12,500 in Maryland) for down payments and closing costs. This means creditworthy Black families can buy a home without relying on family money, finally breaking the cycle of exclusion.
- Investing in Black Communities: AHP money is often directed to buyers in Qualified Census Tracts and historically underserved communities in cities like Baltimore. By sending money into these areas, the grants reverse the lack of investment caused by redlining, helping to stabilize property values and rebuild homeownership rates in Black neighborhoods.
- Protecting Family Homes (Heirs’ Property): The FHLBank Atlanta runs a fund specifically to help fix Heirs’ Property issues. This is when homes are passed down without a clear legal title, preventing families from accessing home equity. The fund helps pay for legal services to clear these titles, turning uncertain homes into secure, generational wealth.
How to find a partnering institution in Maryland
These grants are given out by local banks, credit unions, and community lenders that are members of FHLBank Atlanta. Since funds are limited and change yearly, the best way to check availability is through the official directory:
- Search the Official Directory: Go to the FHLBank Atlanta “Find a Member” page.
- Filter the List: Search by state (Maryland) and look for institutions that participate in AHP Ownership Products—these are the ones actively offering the down payment grants.
The direct link to the member search tool is: FHLBank Atlanta Find a Member Directory
These grants are transforming aspiring homeowners into property owners, fostering individual wealth and strengthening communities, one grant-assisted home at a time.
The opinions expressed in this commentary are those of the writer and not necessarily those of the AFRO.