What: FHLB Down payment assistance may soon be coming to your area.
Currently Where: Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia
FHLBATL.com
Who Qualifies: Anyone who earns less than 80% of the 2014 HUD median income. The 2015 median income is not available until 03/2016: https://www.huduser.gov/portal/datasets/il/il2014/select_Geography.odn
Programs: Multiple
First home buyer Program (First time home buyer means not on title in last 3 years) requires minimum $1000 investment. Grant matches $4000 for every $1000. Maximum of $5000 with $1250 investment for first time home buyer program for down payment and closing costs.
Community Program for 1st time and non-first time buyers who work: health industry, law enforcement, educators, firefighters. Minimum $1000 investment with a maximum of $7500 for down payment and closing costs.
Foreclosure Recovery available for 1st time and non-1st time buyers who purchase a FHLB foreclosed property. Minimum $1000 investment with $15,000 matching grant to pay for down payment and closing costs.
Veteran's Purchase available for US Military Veterans. No minimum investment required. Up to $7500 to be used towards down payment or closing costs. Not all Veterans qualify for the maximum loan amount due to several factors (time in service, branch served, entitlement usage) so they may need extra money for down payment.
Returning Veteran Purchase available for US Military returning from overseas or once served overseas. No minimum investment required. Up to $10,000 to be used towards down payment or closing costs.
When: Funds available 1/19/16
Requirements: 640 minimum credit score; Requires phone interview (counseling) for first time home buyer (has not been on property title for 3 years); Must pay $175 for phone counseling (paid at closing).
Caution: Uses entire income in the household, not just the person on the loan (if child works part time job, his/her income will also be included towards determining the 80% max income, even if not used to qualify for the loan).
All deposits made into bank account will be questioned. If unable to account for a deposit over $50, grant denied.
Do not give them pay stubs rather provide a full VOE.
Although loan is not always repayable (opposite of GA Dream), the loan amount is discounted 20% per year over 5 years. The grant is a second lien loan recorded and recorded as such. When calculating closing costs, be sure to find out Title fees for closing a second loan.
Allow additional 7 days for closing since TRID may cause conflicts.
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