Let the Welcome Home Program Welcome You Home!

/

While this time of year may have you pumped for chocolate hearts and shamrocks, it’s got me pumped for an entirely different reason (despite my love of chocolate) — one of my favorite programs, the Welcome Home Program of the Federal Home Loan Bank of Cincinnati, is officially back as of March 1st! And thanks to F&M Mortgage’s relationship with the FHLB, I get to help homebuyers take advantage of this truly one-of-a-kind program for yet another year!

The Welcome Home Program, a down payment assistance program that assists homebuyers in getting the funds they need prior to the closing of their new home, offers grants to fund reasonable down payments and closing costs incurred in conjunction with the acquisition or construction of owner-occupied housing by low and moderate income homebuyers. In layman’s terms, it provides free money to homebuyers who meet certain requirements. And who doesn’t love free money?

Sounds great, right? Well, there is one caveat:  This exceptional program is only available for a limited time, i.e., until the funds run out. But there’s no need to worry; in my experience, Welcome Home funds have, within the past couple years, been available through early to mid-April. But we’ve got to act fast!

Here are the details:

  1. Up to $5,000.00 is available as down payment and closing cost assistance. Please note that the grant is forgivable if the buyer lives in home for 5 years. If sold before, pay back is prorated over 60 months. 
  2. The funds are provided as a grant and therefore, no repayment is required.
  3. The borrower must have a home under contract (primary residence only) to place a reservation for the funds.
  4. The borrower must put at least $500.00 of their own money into the deal (60% of the $500.00 may be gifted).
  5. This program is available in conjunction with certain low interest rate programs such as FHA, as well as THDA, USDA and that of conventional loans – but it is not available in conjunction with repair programs such as 203K.
  6. While the borrower does not have to be a first time homebuyer, all first time homebuyers must complete a homebuyer education course as part of the requirements to receive said funding.
  7. Income limits most definitely apply (it’s basically 80% median).
  8. The income limit in Davidson County, TN, is $65,760 for 1-2 person household and $76,720 for 3+ person households.
  9. This program may take a little longer to process due to the file having to be underwritten by the FHLB in Cincinnati, resulting in an up to 45 day processing time (but it’s certainly worth it).
  10. While it may be used for new construction, the home in question must be completed by December 1, 2018.

Remember, Welcome Home funds will be available for reservation on a first-come, first-served basis beginning at 7:00 AM CT on March 1, 2018, and will remain available until all funds have been reserved.

If your client will be going into a home contract anytime within the next month or so, then it only make sense to have them take a look at the Welcome Home Program. And I can help. Let the Welcome Home Program help welcome your clients into the home they’ve always dreamed of!