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Federal Home Loan Bank Downpayment
Assistance funds are available. Gateway
Bank Mortgage has been allocated
$1,000,000.00 in funds for downpayment
assistance. Guidelines include:
Downpayment/FHP Assistance:
- The maximum amount of downpayment
assistance per household is $10,000.
- The minimum borrower contribution is
$500.
- Each dollar of a borrower's cash funds
for downpayment and closing costs can be
matched by the FHLB funds with $5.00 of
assistance.
Example: Borrower funds: $500 - FHP
Funds $2500
Borrower Funds $1000 -
FHP Funds $5000
Borrower Funds $2000 -
FHP Funds $10,000
- Funds may be used for downpayment and
closing costs/prepaids only.
- Funds MAY NOT be used to reimburse
earnest money, pay discount points or pay
cash to the borrower at closing
Eligibility:
- First time Homebuyer - has not owned a
home in the past 3 years
- Must complete Homebuyer Counseling
- Owner Occupied, Single Family
Residences Only
Income:
- Borrower must have income at or below 80%
of the median income (adjusted for family
size) for the area in which the property is
located.
- Income must be reported for all Household
members (regardless of whether they are a
borrower on the loan application)
- Minimum Front End (Housing Ratio)
25%
- Borrower must submit two current and
consecutive pay stubs
- A verification of employment is required
in addition to the pay stubs
- Self Employed Borrowers must provide 2
years of tax returns
- Overtime, Commission, Bonus will be
calculated by a two year average
- Attached Income Worksheet provides
additional details
Assets:
- Contribute at least $500 in cash.
- Gift funds from a family member are
allowed as borrower's contribution (must
provide a notarized affidavit of gift)
At time of Application:
- Borrower to sign the First Time Homebuyer
Certification
- Borrower to schedule the Homebuyer
Counseling (with Genworth Mortgage
Insurance)
At
time of Initial Set Up and Underwriting:
- Upon verification that the borrower meets
the qualifying criteria the Credit Analyst
should submit the Pre-Funding Request to
FHLB
- The Pre-Funding request should not be
requested earlier than 30 days prior to the
estimated closing date.
- Processing time for the request may take
up to 20 business days
Eligible
Investors/Programs
-
-
Must meet FHA program requirements
- Must meet My Community Mortgage or
Homepossible guidelines
- I have not checked all investor
websites. If you have a loan you would like
to lock with one of our other investors,
please contact me so I can research their
programs/products.
- Eligible Investors include: Bank of
American, Citi and Chase (Fixed Rate FHA
Only) |
