Good news for homebuyers out there!  There is free money available to assist you with the purchase of your home.  Every year, the Federal Home Loan Bank sets aside grant money for down payment assistance for homebuyers. The program is called the Welcome Home Program.   Qualifying homebuyers can receive $5000 to put toward their down payment and active duty military or honorably discharged veterans can receive up to $7500 for their down payment.  The beauty of this program is that since it is grant money, the recipient does not have to pay it back!  It is all to help make the dream of homeownership accessible to as many as possible.  

Dayton Realtor Reminders Home Buyers The Down Payment Assistance Is Available!

The first question is:  who qualifies for the program?  There are income restrictions that vary from county to county so it is important for you to speak with a lender who is a Federal Home Loan Bank member in order to determine if you qualify.  You need to have at least $500 of your own money to put toward your down payment or closing costs.  You do not have to be a first-time homebuyer; however, if you have not owned a home in at least the last 3 years, you will be required to complete an online homebuyer class before closing on your house.  In order to apply for the grant money, you must be under contract on a house.  

 

The second question is:  what qualifies for the program?  The home can be a single-family home, condo, townhome, duplex, or up to 4 multi-unit building.  Some manufactured homes also qualify but be sure to ask your lender to make sure that it does.   This home must be your primary residence; it is not to be used for investments.  The only other requirement is that you must remain in the home for at least 5 years.  This is a legally binding agreement that becomes part of your deed when the home is purchased so if you sell sooner or the property goes into foreclosure, the Federal  Home Loan Bank will be notified.

 

The third question is:  how do I apply?  Please feel free to reach out to us and we can provide you with the names of a few lenders that are members of the FHLB and can take care of you.  Here is a brief overview of the process.  We will help you to shop for a home and once we find the right home, we will put together a purchase contract for the property.  After the contract has been negotiated and is fully executed, we will send a copy of the purchase contract to your lender.  You will make a mortgage application with the member lender and once it is determined that you qualify for the Welcome Home funds, your lender will submit an online request to reserve the funds for you.  After the Federal Home Loan Bank receives the reservation request, they will review your request and issue an approval letter.  They do advise that it can take up to 4 weeks for a response, so make sure that you give your contract closing date plenty of time in order to get this approval.  Once you receive the approval back and your mortgage loan is approved with your lender, you can schedule your home closing!

 

One word of advice...don't delay!  The funds that become available on March 1, 2021, are limited and will go fast.  Give us a call and we will help you get the process started so you don't miss out on free money!