FHLB's popular down payment assistance program offers grants
to low- and moderate-income homebuyers
CINCINNATI, Jan. 24, 2025 -- The Federal Home Loan Bank of Cincinnati's Welcome Home Program (WHP) will open at 8:00 a.m. ET on March 3, 2025. The WHP offers grants of up to $20,000 to fund down payment and closing costs for low- and moderate-income homebuyers.
Grant funds will be reserved on a first-come, first-served basis until all funds have been reserved. All grants must be reserved by the FHLB member financial institution offering the mortgage. Members across Kentucky, Ohio and Tennessee participate in the program and a list of eligible member institutions is available at www.fhlbcin.com. If interested in the program, prospective homebuyers are encouraged to reach out to an FHLB member financial institution as soon as possible to begin the process.
"We continue to see the barriers to entering the housing market grow throughout Kentucky, Ohio and Tennessee. As housing prices have increased throughout our District, saving for higher downpayments and closing costs can be a challenge. A $20,000 Welcome Home Program grant can bring homeownership back within reach for many," said Andy Howell, President and CEO, FHLB Cincinnati.
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.
Since its inception in 1998, the WHP has disbursed $199 million on behalf of more than 39,000 households. The WHP is part of the Federal Home Loan Bank of Cincinnati's Affordable Housing Program, which has disbursed over $640 million in subsidies towards the creation of more than 91,000 units of affordable housing since 1990.
About the FHLB
The FHLB is a AA+ rated wholesale cooperative bank owned by 607 member financial institutions, including commercial banks, thrifts, credit unions, insurance companies and community development financial institutions in Kentucky, Ohio and Tennessee. The FHLB provides members access to products and services (primarily Advances, which are a readily available, low-cost source of funds, purchases of certain mortgage loans from members, and issuance of Letters of Credit to members) and a competitive return through quarterly dividends on their capital investment in the FHLB. The FHLB funds these products and services by raising private-sector capital from member-stockholders and, with the other Federal Home Loan Banks (FHLBanks) in the FHLBank System, issuing high-quality debt in the global capital markets. The FHLB also funds community investment programs that help its members create affordable housing and promote community economic development.
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