Supporting member mortgage lending to first-time homebuyers through down payment and closing cost assistance
The 2016 First Front Door program opened on Wednesday, March 2. More than $5.7 million has been allocated this year for down payment and closing cost assistance to help eligible first-time homebuyers. See below for more information on how to apply.
What is First Front Door?
Through First Front Door (FFD), FHLBank members can open the door for first-time homebuyers. With FFD grants, the Bank will match the qualified homebuyer’s contribution 3-to-1. For every $1 of contribution the homebuyer makes, the Bank will provide $3 in grant assistance, up to a maximum of $5,000.
FFD benefits to FHLBank members:
- Enhances first-time homebuyer products
- Improves market competitiveness
- Strengthens member underwriting
- Provides CRA credit
- Empowers first-time homebuyers, deepening banking relationships
Who qualifies for FFD funding?
Qualified first-time homebuyers can use FFD grants toward down payment and closing costs. Each prospective homebuyer must:
- Be a first-time homebuyer (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 – this includes a married couple if either has not owned a home within the past three years)
- Contribute personal funds as part of the down payment and closing costs
- Have household income at or below 80 percent of the area median income at the time of registration
- Complete at least four hours of homeownership counseling, including the topic of predatory lending, prior to the purchase of the home
- If a student, work at least 30 hours a week
- Retain the home for five years to avoid having to repay any portion of the grant – an FFD mortgage and note are required as part of the original mortgage documentation
How does FFD work?
Prospective homebuyers should visit www.firstfrontdoor.com to learn how homebuyers can qualify and apply for FFD funding. FHLBank member institutions must first enroll in FFD before offering it to potential customers. When the FFD funding round opens each year, enrolled members can then follow these steps to register homebuyers for FFD funding:
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