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Housing
& Community « First Front Door »
The homebuyer grant program of FHLBank Pittsburgh
is still a wonderful way for first-time homebuyers
to realize the dream of homeownership:
- First-time homebuyers may receive up to $5,000
in cash for down payment and closing costs.
- The registration process makes applying easy.
- Approvals are made in 10 business days or
less.
- Homeownership counseling minimum is still
4 hours.
Through First Front Door, FHLBank member financial
institutions, housing counseling agencies, REALTORS®,
community-based organizations and others with a stake
in homeownership can open the door for first-time homebuyers.
This critical grant helps strong, worthy buyers achieve
an American dream they may have never before thought
possible.
How much may a homebuyer receive?
Through First Front Door, the FHLBank will match the
qualified buyer’s contribution 3-to-1, based
on the buyer’s need. For every $1 of contribution
the buyer makes, the FHLBank will provide $3 in grant
assistance, up to a maximum of $5,000.
Who qualifies for First Front Door funding?
Qualified
first-time homebuyers can use First Front Door grants
toward down payment and closing costs on owner-occupied
homes. These include single-family houses, townhomes,
duplexes, condominiums and modular units.
Each prospective homebuyer must:
- Be a first-time homebuyer (which is defined
to be an individual who has not owned a home within
the past three years or owned a home only while married
but not as a single person within the past three
years).
- Contribute personal funds as part of the
down payment and closing costs.
- Have an income at or below 80% of the area
median income at the time of First Front Door registration.
- Complete at least 4 hours of homeownership
counseling prior to the purchase of the home, including
the topic of predatory lending.
- Pay at least 15% of their monthly household
income for PITI (principal, interest, taxes and insurance),
NOT contribute more than $15,000 to the purchase
of the home, and NOT receive more than $250 cash
back at loan closing. (Buyers paying <15% for
PITI may still qualify, but a more thorough assessment
of need is required.)
- Retain the home for five years in order to
keep the full amount of the grant. A second mortgage
and note are made part of the original mortgage documentation.
Note: The following individuals are not eligible for
grants:
- Those
with assets with a market value greater than $30,000,
excluding IRAs, 401(k) and other similar retirement
accounts.
- Those who are students with no income
or only part-time income.
How does a prospective homebuyer apply for funds?
To participate, a qualified homebuyer must secure
a grant from an approved FHLBank of Pittsburgh member
bank.
To apply, a prospective homebuyer:
1. Calls the contact person from a list of participating
banks or housing counseling agencies at www.firstfrontdoor.com.
2. Visits a participating bank and requests a First
Front Door grant.
Next, the member bank:
1. Completes the registration form and collects
participant income documentation. Registration forms
may be downloaded from the right-hand column above.
2. Sends the completed registration form and income
documentation to Federal Home Loan Bank of Pittsburgh,
Community Investment, 601 Grant Street, Pittsburgh,
PA 15219-4455.
Approvals of complete registrations will be made in
10 business days or less. An approved homebuyer has
6 months to complete homeownership counseling and purchase
a home, with the member bank providing the first mortgage
and advancing the eligible grant amount.
Once the homebuyer’s First Front Door registration
is approved, the participating member must work with
the homebuyer to secure additional documentation and
provide it to the FHLBank prior to receiving grant
disbursement. For a full list of documentation, see
the First Front Door program
manual for 2008.
How does First Front Door benefit
member banks?
First Front Door can:
- Help place existing bank customers into new
homes, helping these families and individuals to create
important wealth-building equity.
- Add new bank customers,
who may make additional investments (savings accounts,
money markets, CDs) or who may in the future require
other loans for big dreams – like college educations,
cars or home improvements.
- Positively influence the
bank’s CRA rating.
- Stabilize the bank’s
local community by boosting homeownership rates and
adding dollars to the tax base.
How does First Front Door benefit housing
counseling agencies?
First Front Door can:
- Help housing counseling agencies
place strong candidates into homes by securing additional
funds for down payment and closing costs.
- Assist in building
stronger relationships between housing counseling
agencies and the banking community.
- Provide even more incentive for first-time
homebuyers to engage housing counseling agencies
since homeownership counseling is required to receive
grant funds.
How does First Front Door benefit others?
First Front
Door can:
- Help other housing-focused organizations
and industries (such as REALTORS®) fulfill their
mission by providing needed resources to assist worthy,
qualified homebuyers.
- Offer an opportunity for fellow
housing providers to build meaningful and lasting
partnerships with the banking and housing counseling
communities.
- Enable
housing advocates from all disciplines to provide
essential services that in turn provide meaningful
change in our communities.
For more information…
Visit www.firstfrontdoor.com or contact the FHLBank’s
Community Investment Department at 1-800-288-3400,
x2826, or 412-288-2826.
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