We again have access to the FHLB fully forgivable loan!
The FHLB forgivable loan is a down payment assistance program that can provide the funds needed for down payment for those qualified buyers in Ankeny, Des Moines, Urbandale and as well as the entire state of Iowa . This program provides $5000 to be used as down payment or to help with closing costs. Contact me at 515-327-9938 for more information on this new down payment assistance program and to see if you qualify.
Here are some highlights:
Income calculations: Click here to use the income calcualtor Click Red box: Click Here for FY 2017 IL Documentation Then select your State & County. Make sure to watch your family size. You are looking at the last row (80%). FHLB’s grant goes by # of people. So if you have 1 person in Polk county—max income is $46,050 annually.
There are no payments on these loans, and they prorated and are forgiven after 5 years.
Max Purchase Price: $250,000.
Limited Funds: LSB receives $250,000 in funds from this program annually. The program is for the entire country and there is also a cap on the funds in the pool for the nation. The program will run out before the end of the year. Unlike IFA, the funds are not allocated until the borrower is fully approved by FHLB. They do not have a registration type of holds on the funds.
Time for FHLB Approval: You MUST allow adequate time for the review of these files by FHLB. They do not allow rushes. Last year we found the turn times be about 3-5 business days. The income figures and documents must be complete and the income must compute on the FHLB worksheet to be under the limit. FHLB places more emphasis on current pay vs historic. So do not assume borrower is under based on last years tax returns! I am happy to calculate this for you to be sure your client qualifies.
Forms to be signed: Program requires the finalized worksheet, confirmation of borrower’s education class +completion of the class & non-working spouse form (if applicable) to all be signed and submitted PRIOR to approval.
Dorothy Mathis is happy to have this new down payment assistance program available to help buyer get into a new home. For more information on this program or how to qualify contact Dorothy at 515-327-9938.