Welcome Home Program Opens March 2January 30, 2020
The FHLB is pleased to announce the Welcome Home Program (WHP) opens at 8 a.m. ET on March 2, 2020. The WHP offers grants to fund down payment and closing costs for low- and moderate-income homebuyers purchasing or constructing a primary residence. Grant funds will be reserved on a first-come, first-served basis until all funds have been reserved.
Honorably discharged veterans and active duty military personnel may receive grants up to $7,500. New for 2020, homebuyers who are a member of the United States National Guard, Military Reserves, or a surviving spouse of military personnel may also be eligible to receive grants up to $7,500. All other qualifying homebuyers may receive grants up to $5,000. Please reference the Welcome Home Guide for complete program details.
Below is an abbreviated list of the program guidelines:
- The total income for all occupants must be at or below 80 percent of the Mortgage Revenue Bond limit for the county and state where the property is located;
- Homebuyers must contribute at least $500 of their own funds towards down payment and/or closing costs;
- All first-time homebuyers are required to complete a homeownership counseling program;
- Grant funds are intended only for homebuyers who qualify for the first mortgage based on their own merit. Co-signors and non-occupant co-borrowers are not permitted;
- The interest rate for the first mortgage may not exceed 7.50 percent; and,
- All eligible property assisted with WHP funds is subject to a five-year retention mechanism, which may require the household to repay all or a portion of the subsidy, if the home is sold or refinanced within five years from the closing of the transaction.
This is our most widely used program, ideally suited to the needs of community lenders and their customers. Since its inception in 1998, the WHP has disbursed $159 million on behalf of more than 32,500 households.
Please contact the Housing and Community Investment Department at 888-345-2246 with any questions.