The member should ensure that each homebuyer is income eligible as defined in the Welcome Home Guide. Income eligibility is indicated by the FHLB Cincinnati approval of the Welcome Home Reservation Request. If the FHLB has not indicated approval, the loan should not close or Welcome Home funds will not be disbursed.

The Member should verify that the homebuyer’s contribution is at least $500. Items paid outside of closing can count towards this requirement (e.g., homeowner’s insurance premiums, application fees, earnest money, appraisal fees, home inspections, etc.)

The Member should ensure that all deposits made by the homebuyer toward the purchase of the home stay in the transaction. No amount of the earnest money, whether paid by cash, check, or note, can be given back to the buyer under any circumstance. No amount of earnest money paid by another party on behalf of the homebuyer can be returned to the buyer or the other party.

The Member must verify that no other debt is being paid off through the closing. It is not acceptable to pay off credit cards, loans, collections, etc., unless the borrower brings sufficient funds to closing (over and above the $500 required) to pay these items.

The Member must verify, and document, that all repairs specified in the appraisal, have been made and that all funds have been disbursed with no funds returned to the homebuyer when a repair escrow (from the buyer) is shown on the Closing Disclosure. Grant funds will not be disbursed until the FHLB receives proof of completion and funds disbursement.

The Member should ensure the first mortgage loan rate is not higher than 7.00%.

The Member should ensure the second mortgage loan rate is not higher than 10.50%. Welcome Home funds may not be used in transactions involving a second mortgage provided by an individual as seller. Second mortgages provided by formal organizations, including financial institutions, Community Development Financial Institutions, housing finance agencies, non-profit organizations, etc. are acceptable.

The Member should ensure the FHLB’s current retention language is included in the new warranty deed. The language can be included in the body of the deed or as a referenced attachment/exhibit.

If an FHA loan, the Member must have the homebuyer sign the current Welcome Home Retention Language Acknowledgement for FHA Loans form. This form should be signed on or before the day of the loan closing.

The Member should obtain a copy of the counseling certificate from all first-time homebuyers upon completion of an acceptable counseling course.

The Member should read the Welcome Home Loan Closing Instructions for Closing Agents and provide these instructions to each closing attorney/agent prior to any closing using a Welcome Home grant.

For more information on required documentation please reference the Welcome Home Guide or for assistance, please contact the Housing & Community Investment Department at (513) 852-7680 or toll-free (888) 345-2246 or email us at