Housing & Community « First Front Door »

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, 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), 529 education accounts 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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Resources

Related Documents

• Fact Sheet
• FFD Website
• FFD Brochure (PDF)
• FFD Manual (PDF)
• Income Limits for All States (LINK)
• Funds Distribution Form (XLS)
• Participant Registration Form (XLS)
• Participating Banks
• Participating Agencies
• Enrollment Form (PDF)
• Agreement (PDF)