2013 FHLB $5,000 Down Payment Assistance Program For First Time Home Buyers

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The 2013 FHLB $5,000 Down Payment Assistance Program For First Time Home Buyersmay be the solution for buyers whose credit is good, but may be lacking the total funds for down payment and or closing costs. Buying in the 2013 market presents challenges as many times to win a multiple offer situation the buyer will have to pay most or all of the their closing costs in order to win the offer. This is common with HUD homes.

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 down payment assistance program amount is $5,000 for 2013. FHLB provides 4 to 1 matching funds 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.

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 as we have other down payment assistance programs that have higher income limits below.

2013 Hud Income Limits Metro Atlanta

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

$37,150     $42,450      $47,750     $53,050     $57,300     $61,550     $65,800       $70,050

This program is designed for the first time home buyer or someone who has not owned a home within the past 3 years. The above income limits is for total income for the household including everyone’s income in the household.

If you income is above this limit we also have GA Dream that can provide $5,000 towards down payment assistance and $7,500 if you are a public servant, such as a police officer, fireman, school teacher or in the medical field such as a nurse. Please see my GA Dream 5,000 Down Payment Assistance Blog for more details.

Finally, we have another down payment assistance programs called the Gwinnett Homestretch Program $7,500 Down Payment Assistance program that is forgiven after 5 years. This program has the same income limits as the FHLB program.

The last program is the NSP program and this program provides from $14,500 that is forgiven after 5 years or $22,000 down payment assistance that is forgiven after 10 years. Must be first time home buyer and fall within the income requirements. This program has higher income limits, but you must buy their homes. NSP buys foreclosed homes and makes repairs and are in usually excellent shape by the time all the work is done. At that point, they are put on the market to sell. See my NSP blog for more details.

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

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

About the Author: The above Real Estate information on 2013 FHLB $5,000 Down Payment Assistance Program For First Time Home Buyers was provided by Mark Mitchell. Mark can be reached via e-correspondence at mark@markmitchellhomes.com or by phone at 404-353-0185. Also visit www.johnscreek-homes.net

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
404.353.0185
mark@markmitchellhomes.com