First-Time Home Buyers Federal Home Loan Bank (FHLB) Grant

Mar 13, 2023 | Core Bank, Real Estate

Ready to buy a home, but you are not sure you can afford it? For many of us, envisioning our dream home is easy, but figuring out how to finance it is usually what keeps it from coming true. Here is some good news –  the FHLB Grant program can help you achieve homeownership. First-time homebuyers (or anyone who has not owned a home in the past 3 years) can be eligible to receive up to $7,500 in grant money to cover down payment and closing costs through Core Bank. Depending on your income, location, occupation, or ownership status, you could qualify for grant money.

Reservations for this grant are accepted on a first-come, first-served basis, starting on March 6th, and subject to member limits through November 30, 2023, up to $4.5 million in allocations as long as the buyer meets qualified household income limits. The minimum subsidy is $2,500 and the maximum is $7,500. Money is fully forgivable after 60 months and little to no down payment is required. There must be a purchase contract to submit for the reservation of funds.

One of the many reasons to buy a home is that it is a large way to build wealth and gain financial stability. To support future homeownership opportunities, we are proud of the partnership with the FHLB to offer these grant funds to be used toward a borrower’s down payment or closing costs.

The FHLB was passed and enacted in 1932 and provides funds to local financial institutions for them to lend to a customer in the form of a mortgage. The structure of the FHLBanks is important because it ensures local banks have access to funds to be competitive and offer a variety of loan programs to buyers.

Get your application for pre-approval in now so you can be ready for the spring season of house hunting. While there will be competition for move-in ready homes with 2023 prices, you may not see the same crowds that packed open houses in 2021 and 2022. Every month going by is another month that a home can appreciate in value. Let us help you with the home mortgage process so you can own your first home and achieve the American dream. Core Bank’s team of lenders are committed to helping you achieve your dreams, whether you’re ready to buy, build or refinance your home. Contact someone from our team and apply today!