2012 FHLB $5,000 Down Payment Assistance Program

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Is buying a new home something you would do now if you had the 3.5% down payment for an FHA Loan, money for home, radon and or pest inspections? Many foreclosure sellers will set a cap on the percentage of the closing costs they will agree to pay for the buyer. Sometimes buyers have a good game plan, but don’t account for some of the costs associated with buying a home.

The Federal Home Loan Bank, otherwise known as the FHLB, is not a government program; rather, its members are made up of regional and community banks from Georgia, Alabama, Florida, Maryland, Washington DC, and the Carolinas.

FHLB has updated its down payment assistance program and has reduced the FHLB down payment assistance program amount from $7,500 to $5,000 for 2012. FHLB  provides matching funds, 4:1 for first time home buyers or someone that not owned a home in three years.  Funds can be used for down payment and/or closing costs for low to moderate income home buyers.

Each bank, or member, is allocated $1 million dollars to use towards down payment assistance to help low to moderate income level families purchase a own a home. Not all banks offer this program and funds are on a first come first serve basis so when the funds will run out, they are gone.

The buyers is the above video closed in December of 2011 and were able to get $7,500 towards down payment that the FHLB down payment assistance program offered in 2011.

Program Highlights: 

  • Buyer’s minimum contribution is $1,000.00
  • FHLB program will match buyer’s contribution 4-to-1 up to $5,000.00
  • Funds can be used for down payment, closing costs and or pre-paids
  • Income limits do apply as income must be at or below 80% of the HUD AMI limits
  • Program is for first time home buyers or if you have not owned a home in 3 years
  • Buyer must occupy the home for 5 years, after 5 years the total amount is forgiven
  • Money is interest free, and every year you remain in the home, 20% of the down payment is forgiven
  • Only available for primary residence purchase transactions
  • Earnest money and upfront appraisal fees count toward home buyer contribution
  • Available for homes listed for resale and new construction
  • No additional underwriting or extra time to process

The following grid shows the general income guidelines to qualify for the FHLB program.  This grid should not discourage you if you feel you do not fall within these guidelines. Your situation is unique to you and we encourage you to contact us today and find out how we can help you.

2012 Hud Income Limits Metro Atlanta 

1 person    2 person    3 person    4 person    5 person    6 person    7 person    8 person

$38,850     $44,400      $49,950     $55,450     $59,900     $64,350     $68,800       $73,200

This program is designed for the first time home buyer or someone who has not owned a home within the past 3 years. We have other down payment assistance programs such as the Gwinnett Homestretch Down Payment Assistance Program contributes up to $7,500 that is forgiven after 5 years.

It is easy to apply so please contact me today and we can provide you with more detailed information and help you get started.

Mark services the following Northeast Atlanta cities: Alpharetta, Roswell, Milton, Woodstock, Dunwoody, Suwanee, Buford, Duluth, Dacula, Grayson and Lawrenceville Georgia.

Copyright © By Mark Mitchell 2010 * FHLB $5,000 Down Payment Assistance Program For First Time Home Buyers *

Are you thinking about buying or selling your home? We would love to help! Give us a call or email us today to get started!

Mark Mitchell, Realtor