WELCOME HOME GRANT
Up to $5000 Grants to Home Buyers for Down Payment & Closing Costs
Dear Ohio Realtors and Home Buyers,
We are ready to begin our annual down payment assistance program from the Federal Home Loan Bank of Cincinnati ("FHLB").
Funds will be available for reservation beginning March 1, 2011.
Q. What is it?
The $200,000 in funds from the Welcome Home Program are utilized to assist low to moderate income home buyers (see chart below for limitations) for the acquisition of their primary residence.
The $5,000 down payment grant may be used in conjunction with a Conforming Fannie Mae, FHA, VA, OHFA or any other first mortgage fixed rate and fully amortizing ARM products provided that the requirements of the Welcome Home program are met. If a buyer stays in the home for more than 5 years, the grant is forgiven.
The money is reserved on a first-come, first-served basis so we need to move quickly! Based on previous years, grant funds will run out by early June. You must be in contract before the closure date.
Q. How can it be used?
- Down payment assistance
- Closing costs assistance
- Homebuyer counseling (not to exceed $300.00) if a first-time homebuyer. The buyer is not required to be a first-time homebuyer
Q. How can't it be used?
- The Welcome Home funds cannot be used for purpose of repair or rehabilitation
- Grants funds cannot be used to payoff debt
- Non-owner occupants and co-signers are not allowed
Q. How does my buyer qualify?
Homebuyers must contribute a minimum of $500.00 toward down payment and closing costs; $300.00 may be received as a gift. First-time home buyers must take an approved counseling course
Q. What are the income limitations?
Total Household Income cannot exceed the income limits. Total household income includes anyone living in the home 18 year of age or older (regardless if they are a borrower on the loan).
Income limits based on Household Size.
|
County |
1-2 Persons |
3-4 Persons |
|
Franklin |
$54,880 |
$63,122 |
|
Delaware |
$54,880 |
$63,122 |
|
Licking |
$54,880 |
$63,122 |
|
Fairfield |
$54,880 |
$63,122 |
|
Pickaway |
$54,880 |
$63,122 |
|
Madison |
$54,880 |
$63,122 |
|
Union |
$58,800 |
$67,620 |
Buyers will also have to sign a "Certificate of Zero Income" for all adults in the home verifying that they don't have any income, as the income is based on all adults intending to live in the home.
Q. Does the Grant even need to be paid back?
The funds do not have to be paid back but there is a retention requirement of five (5) years from the date of the recording of the deed. If the property is sold and there are any net proceeds received by the owner (seller), a pro rata amount of the Welcome Home subsidy must be repaid to the FHLBank.
Q. What is the time frame to reserve funds?
Funds can be reserved once a home is in contract. If can take 4 to 6 weeks for approval. Contracts should be written for 45 to 60 days.
If you or a client could take advantage of this program please do not hesitate to contact me.
Michael Reeve
Vice President, Residential Lending
First Bexley Bank
614-682-5252 Office
614-899-0361 Fax
FBB Mortgage Loan Group: 2641 Oakstone Drive, Columbus, Ohio 43231
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