Senior Loan Officer
$5000 Welcome Home Grant Kentucky
$5000 Welcome Home Grant Kentucky
Text or call phone: (502) 905-3708
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Welcome Home Program
This is only a brief overview of the Welcome Home Program. Complete details, limits, requirements, definitions, and guidelines are contained in Attachment H of the 2017 AHP Implementation Plan and in the 2017 Welcome Home Guide.
What is the Welcome Home Program?
The Welcome Home Program (WHP) offers grants to fund reasonable down payments and closing costs incurred in conjunction with the acquisition or construction of owner-occupied housing by low- and moderate-income homebuyers. The grants are limited to $5,000 per homebuyer and Members are subject to an aggregate limit of $200,000 per offering. All funds are reserved for specific homebuyers purchasing specific homes and cannot be transferred to other homebuyers or to other homes. Welcome Home funds will be available for reservation on a first-come, first-served basis beginning at 8:00 AM ET on March 1, 2017, and will remain available until all funds have been reserved.
Who Can Use the WHP?
The FHLB has established a set-aside of Affordable Housing Program (AHP) funds to help create homeownership. These funds are available to Members as grants to assist their mortgage loan applicants in the home buying process. This is our most widely used program, ideally suited to the needs of community lenders and their customers.
What are the Program Requirements?
Below is an abbreviated list of program eligibility requirements:
- 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. The FHLB has an Income and Affordability Workbook to assist in determining household income eligibility.
- Homebuyers must contribute at least $500 of their own funds towards down payment and/or closing costs.
- WHP applicants do not have to be first-time homebuyers. However, all first-time homebuyers are required to complete a homeownership counseling program.
- WHP grant funds are intended only for homebuyers who qualify for the first mortgage based on their own merit. Co-signors and co-borrowers are not allowed unless they will occupy the home as their primary residence and their incomes are included in determining eligibility.
- WHP grant funds may be used in conjunction with other local, state and federal funding sources and with the FHLB Cincinnati’s Community Investment Cash Advance Programs.
- The Member who reserves the WHP funds must originate the first loan, but the loan may close in the name of a third party.
- The interest rate for the first mortgage may not exceed 7.25 percent.
- The interest rate for the second mortgage may not exceed 10.75 percent.
- Only second mortgages provided by formal organizations, community development financial institutions, housing finance agencies, non-profit organizations, etc. are acceptable.
All eligible property assisted with WHP funds is subject to a five-year retention mechanism (Retention Agreement), 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.
How Do I Apply?
Reserving WHP Funds
Homebuyers must apply with one of our Member institutions. Click here to search our Member Directory.
Members may reserve funds via the Welcome Home Program link through the FHLB’s Members Only portal by submitting an online Reservation Request with supporting documentation. Instructions for accessing Members Only may be found here.
The FHLB will perform a preliminary review of the Reservation Request and the documentation submitted to determine eligibility of the homebuyer, availability of funds in the program, and availability of funds for the Member. If any of the information is incomplete, additional documentation or information may be required. Note: The Reservation Request will be denied upon receipt if a fully executed loan application is not included.
Written notification will be provided to the Member as to the homebuyer’s eligibility. Submission of a Reservation Request does not constitute an approval of funds. Funds are reserved only upon written notification of approval from the FHLB.
Please allow four weeks for the FHLB to review the Reservation Request and supporting documentation.
Disbursing WHP Funds
Welcome Home funds will only be disbursed after closing. The FHLB has some general guidance and specific instructions that Members and Closing Agents should use in closing mortgages using Welcome Home funds. Funds will be disbursed only to the extent they are required to fill the gap for down payment, closing costs, and counseling fees.
Members may submit a Request for Payment of Reserved Funding with supporting documentation via the Welcome Home Program link through the FHLB’s Members Only portal. Submission of a Request for Payment of Reserved Funding is not an approval of funds disbursement. Once the Request for Payment of Reserved Funding has been reviewed and approved, funds will be disbursed to the Member.
In the event the FHLB determines that funds were used for an ineligible expense, the grant will be reduced by the amount of the ineligible expense unless the household brings adequate funds to the closing to cover the amount of the ineligible expense. Under no circumstances will cash back to the homebuyer be permitted.
Please allow four to six weeks for the FHLB to review the Request for Payment of Reserved Funding and supporting documentation.
Additional Information and Technical Assistance
Documentation requested by the FHLB must be emailed to email@example.com. Any documentation requiring an original signature must be mailed to:
Welcome Home Program
P.O. Box 598
Cincinnati, OH 45201-0598
For more information or assistance, please contact the Housing & Community Investment Department at (513) 852- 7680 or toll-free (888) 345-2246 or email us at firstname.lastname@example.org.
For assistance with Members Only, please contact the Service Desk at 800-781-3090.
Approved Foreclosure Intervention/Default Counselors and Legal Aid Directory
Complete List of agencies, contact information, and the counties they serve
Better Business Bureau
The Better Business Bureau offers the “Reliability Report” which serves as a business report card. Consumers are encouraged to check the report before they do business with an unfamiliar company.
Kentucky Cabinet for Health and Family Services
Food stamps, health care, Medicaid, child care assistance, child support, heating and utility assistance.
Kentucky Department of Financial Institutions
The state’s Department of Financial Institutions supervises the financial services industry.
Beginning January 1, 2009, all mortgagees shall provide the “Notification to Homeowners of the Kentucky Homeownership Protection Center” document to all Kentucky borrowers, as required by KRS 286.2-020. This form is available to download by going to http://www.kfi.ky.gov/nondepository/khpc.htm.
Consumers can call to check background and license status of their loan officer, file a complaint or to report fraud.
U.S. Department of Agriculture-Rural Development Office
Information on how to buy a home and avoid foreclosure as well as financial calculators and budgeting tools.
Calculators and tools: http://www.freddiemac.com/corporate/buyown/english/calcs_tools/
Federal Trade Commission
Consumer protection, information and complaint procedures.
Main site: www.ftc.gov/
Credit repair facts: www.ftc.gov/bcp/conlin/pubs/credit/repair
Annual Credit Reports
Credit reports, credit fraud protection and credit dispute information.
Credit reports, credit fraud protection and credit dispute information.
Internal Revenue Service
For Individuals: 1-800-829-1040
For Businesses: 1-800-829-4933
For Hearing Impaired: 1-800-829-4059 (TDD)
Hours of Operation: Monday through Friday, 7 a.m. to 10 p.m. local time (Alaska & Hawaii follow Pacific Time)
The Kentucky Homeownership Protection Center works with counseling agencies to provide foreclosure prevention and intervention counseling services to Kentucky residents. If you are in danger of foreclosure or need budgeting and credit help, contact the Protection Center. A representative will call you to schedule an appointment with a counselor in your area at no cost to you.
Some areas of Kentucky have 2-1-1 service which you can call for additional services. Where available, 2-1-1 can help locate the services you need including food, utilities, medical care, toiletries, household items, furniture and security deposits for rental units.
The Salvation Army
The Salvation Army may have funding available to assist homeowners who are behind on their mortgage payments. Visit the Salvation Army Web site to find a location near you.
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2011 Welcome Home Program
Frequently Asked Questions
Q. How are funds reserved?
A homebuyer applies for a mortgage through one of the Federal Home Loan Bank of
Welcome Home Reservation Request, loan application, and pertinent income
documentation to the FHLBank. Funds are reserved on a first-come, first-served
A homebuyer may receive Welcome Home grant funds up to $5,000 to be used for
the Welcome Home round.
Please allow a minimum of four to six weeks from the time the Reservation Request
email@example.com. Please state the
are the approval letters not coming to me?
. Each Member may only have one contact person. We use the information on the first
particular person to be the contact, please let us know via email at
federal funding sources?
. Yes. However, Welcome Home funds may not be used with an existing or future
The MRB income limits can be found on our website at http://www.fhlbcin.com or at the
80% of the MRB income limits.
All Welcome Home approvals are valid until December 1, 2011.
I send in my Reservation Request or after I have received an approval letter?
. A Reservation Request and approval are only valid for the property originally
Member should withdraw the original Reservation Request and submit a new online
Reservation Request with the updated property address or requested grant amount.
The four to six week review period will begin again upon resubmission.
No. Welcome Home funds are intended to only assist homebuyers who qualify for
not relying on any expected but uncertain change in job status or income.
The Welcome Home funds are disbursed to the Member after the loan has closed.
an online Funding Request, a copy of the fully executed HUD-1, the final signed
Truth-in-Lending for all repayable mortgages, and a copy of the warranty deed
containing our 2011 retention language to the FHLBank. Please allow four to six
weeks for it to be reviewed and for funds to be disbursed.
If you do not need the entire amount of the approved grant, you may apply the
the HUD-1. No cash back may be given to the homebuyer and no earnest money may
The HUD-1 may have shown payoff of debt, return of the earnest money deposit, or
. No. However, at least one-third of Welcome Home funds must be reserved for firsttime
No. It is the Member’s responsibility to set their fax machine or email to print a
unless it has been at least four weeks since you sent it. A status report will be sent to
the Member contact every Friday.
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Yes. However, the manufactured home must be built on a permanent chassis,
least 24 feet wide. Additionally, the home and lot must be taxable together as real
property and the home must be built to the Manufactured Home Construction and
Safety Standards (HUD Code). A copy of the appraisal is required at time of funds
Depends. If income is from employment, we require two consecutive YTD pay stubs
require the most recent two years’ signed federal tax returns. More information on
documenting income can be found in our Welcome Home Guide, which is available
Yes. However, if the repair escrow is greater than $500 and is held from the buyer’s
should send the FHLBank a copy of the appraisal showing all repairs were required
and the estimated amount of the repairs. The FHLBank staff will review the request
and email the Member contact with a response. Note: We expect the Member or
their closing agent to hold the escrowed funds and to disburse them upon presentation
of acceptable receipts and/or invoices. If the repair escrow is held from the seller, no
pre-approval or documentation is required.
have been completed?
The Member must submit an inspection showing all repairs have been made, copies
returned to the homebuyer.
Can they have cash back?
If all escrowed funds are not used, the balance should be applied to the first mortgage
used their own funds to set up the repair escrow account, and they did not use all
those funds, they may have their remaining funds back as long as they have the
minimum $500 in the transaction. If the HUD-1 shows the homebuyer only had the
minimum $500 in the transaction, and they did not use all of the escrowed funds, the
balance must be applied to the first mortgage as a principal reduction or the Welcome
Home grant will be reduced.
The 2011 Welcome Home Guide is available on our website at http://www.fhlbcin.com