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Eric gave a great answer let me just add a little.
It's income qualified based on the census tract of where you live. The income is based also on family size so the larger the family the more income you may have.
It's likely that FHA financing will be used but it's possible to use conventional financing if the down payment is a little larger.
Hope this helps let us know if you need more. Our allocation has been used for the year at this point unfortunately.
It does take a little longer to close these loans as the 2nd trust has to be approved out of Atlanta not by the local lender. And you must take a phone counseling class also.
Thanks,
Answer #1
The FHLB Grant (Federal Home Loan Bank) is a 4:1 ratio downpayment assistantance program that piggybacks on a traditional purchase loan.
Typically used with FHA financing, for 1st time home buyers only, this grant can be used towards your 3.5% FHA down payment requirement.
For every $1 you put into the transaction, FHLB will match with $4 to a maximum grant of $7500.
This allows an individual to purchase a property with as little at $1875 out of their pocket if their offer contract is negotiated with up to a 6% closing assistance credit as allowed with FHA from the seller.
This grant is limited to the availability of funds per lender participating in the program. Each participating lender is allocated an amount of grant funds to lend per year. Once the lender uses their allocation and/or the FHLB funds set aside for the whole program are used up, the program stops until the FHLB replenishes the program which occurs typically in the following calendar year.
This is a very brief explanation of the program and not everyone will qualify for it. For more information, call.