It’s important for potential homeowners to know all the options available as they look to buy a house. Sometimes, the opportunity to own a home is closer than you think. That may be the case with the grant program from the Federal Home Loan Bank. Whether you’re a first-time homebuyer, civil servant or current/retired military, the FHLB grant has a plan for you. The program is available in North Carolina, Virginia and other states. And the grant money can go toward your down payment or closing costs.
Below I lay out the parameters for each loan program and who is eligible.
First-Time Homebuyer Product
You need to make a minimum $1,000 contribution to participate in a 4-to-1 grant match. That means if you put forth $1,000, you can receive $4,000 in grant funding. If you contribute $1,250, you can receive $5,000 (the max funding available).
For the loan program, a first-time homebuyer is defined as anyone who has not owned a home for three years as well as single parents and displaced homemakers who owned or resided in a home with a spouse during the last three years.
Community Partners Product
Again, you need to make a minimum $1,000 contribution to participate in a 4-to-1 grant match. That means if you put forth $1,000, you can receive $4,000 in grant funding. If you contribute $1,250, you can receive $5,000. The max funding this time is $7,500.
For the loan program, a community partner is defined as employed or retired law enforcement officer, educator, firefighter, EMS or health care worker, other first responders and non-active duty National Guard Reservists. You are not required to be a first-time homebuyer.
Veterans Purchase Product
For the third loan option, there is no minimum borrower contribution to participate. I repeat: no minimum contribution. Active or retired military can receive up to $7,500 in FHLB funding. What’s more, you can receive up to $10,000 if you’re part of the Returning Veterans Program, meaning if you have served in an overseas combat military intervention you may qualify.
You don’t need to be a first-time homebuyer to apply.
For all three loan options, the grant funding is forgivable if you stay in the house for at least five years. It’s important to note that to qualify, household income may not exceed 80 percent of the Housing and Urban Development median income limit, adjusted for family size. In simple terms, that means these loan programs come with income limitations.
As you look to buy a house in 2018 or perhaps 2019, remember these fantastic loan options and the grant funding that comes with them.