‘Welcome Home’ Grant, Back Again! 2012
Ok, so it appears that my old post from 2010 on the Welcome Home Grant is still getting the bulk of the traffic from search engines!!! – So I hope this one finds everyone just as well because like any program there are some slight changes this year. Read on and email me at firstname.lastname@example.org with questions!
Great news for 2012 home buyers. Not only are interest rates at record lows (never to be seen again in our lifetime) but the “Welcome Home Grant” is being offered again this year at selected banks. Funds will be available for distribution starting MARCH 1st but do not wait. YOU CAN STILL WRITE YOUR PURCHASE CONTRACTS NOW and your bank will reserve funds for you!!! Funds are only available until they run out which typically happens each year around mid to late May but in 2012 things are different. Instead of each lending instituton getting a designated pool of money, this year it is a free for all until all of the money is gone. This will surely cause a quicker dissolve of the available funds this time around.
One common question that I often get…where is this money coming from? Each and every year the money has been distributed by the 12 Federal Home Loans Banks. These banks are U.S. government-sponsored banks that provide stable, on-demand, low-cost funding to American financial institutions. For more information on them see their wiki page.
Here is a general rundown of the program and how you can qualify:
Welcome Home Grant 3.5% Down Payment Assistance from selected banks – not just for first time home buyers!
- Assistance not to exceed $5,000 – must go toward downpayment assistance. Can not be used to cover closing costs or pre-paid items.
- Seller CAN pay closing costs and pre-paid items
- FHA or VA loan (although some banks this year are offering a conventional loan option)
- Borrower must have $500 of their own funds towards out of pocket
- Borrower cannot get cash back at closing—even earnest money—try and keep earnest money low ($500)
- Closings can take up to 4 weeks depending on demand—no rushes
- Borrower home buyer counseling is required – you should take classes from your lender’s preferred vendor after you have applied for your loan
- You do not have to be a first time home buyer
- Funds cannot be reserved until there is a contract
- Income limits for Butler, Clermont, Hamilton, and Warren Counties:
- 1-2 people – no more than $56,320
- 3+ people – no more than $64,768
Team Annett Office