The Federal Home Loan Bank of Cincinnati’s Welcome Home Program is offering grants of up to $20,000 starting on March 3 to fund down payment and closing costs for low and moderate-income homebuyers.
Grant funds are reserved on a first-come, first-served basis. All grants must be reserved by the FHLB member financial institution offering the mortgage.
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 (MRB) limit for the county and state where the property is located;
- Homebuyers must pay a minimum of $500 toward the purchase of the property.
- First-time homebuyers must 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 maximum interest rate for the first mortgage may not exceed 9.875 percent.
- 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.
The income limits for Boone, Campbell and Kenton counties are $83,840 for a one to two-person household and $96,416 for a household with three or more people.
“We continue to see the barriers to entering the housing market grow throughout Kentucky, Ohio and Tennessee,” FHLB Cincinnati CEO Andy Howell said in a press release. “As housing prices have increased throughout our District, saving for higher down payments and closing costs can be a challenge. A $20,000 Welcome Home Program grant can bring homeownership back within reach for many,”
Members across Kentucky, Ohio and Tennessee participate in the program. A list of eligible member institutions is available at fhlbcin.com