The Welcome Home Program provides a grant for qualified homebuyers with up to $5,000 of assistance toward the down payment and/or closing costs of a new home. Honorably discharged veterans, surviving spouses of service personnel, and active duty military homebuyers can qualify for up to $7,500. This is a great opportunity if you've ever dreamed of owning your first home or if you’re looking to purchase a new home!
Funds are available beginning March 1, 2021 at 8:00 a.m. on a first come, first serve basis. We recommend that you make preparations as soon as possible to take advantage of this opportunity!
Welcome Home Program Details
- Receive up to $5,000 toward the down payment, closing costs, or prepaid costs for all qualified homebuyers.
- Receive up to $7,500 for honorably discharged veterans, surviving spouses of service personnel, and active duty military homebuyers.
- Funds can be used even when the sellers are paying closing costs.
- Any funds left over can be used to pay down the principal loan balance.
- Funds can be used in conjunction with other grant fund programs.
- Funds can be used even if you have a down payment of your own.
- All funds are reserved for specific homebuyers purchasing specific homes and cannot be transferred to other homebuyers or to other homes.
- Welcome Home Program grant funds can be used with FHA, VA, THDA, USDA/Rural Housing, Home Ready, Community Investment Cash Advance, and other conventional products.
- Total household income must be at or below 80% of Mortgage Revenue Bond income limits.
- Homebuyers must contribute at least $500 of their own funds towards their down payment and/or closing costs. Up to $300 of these funds may be received as a gift
- Funds received for down payment assistance grants from sellers, nonprofit, or other organizations (including state and local government agencies) cannot be used to reduce the required contribution.
- Costs outside of closing, such as hazard insurance, taxes, application fees, and other items related to the purchase, are considered part of the homebuyer’s required contribution.
- Homebuyers must remain in the home for five years. When the home is sold at a profit, Welcome Home will prorate the funds that are required to be paid back.
- First-time homebuyers must complete a homebuyer counseling program.
- Homebuyers cannot own two homes at once. However, simultaneous closings can still qualify for the grant funds.
- Retention language must be added to the warranty deed explaining the five year retention period.
- The property must be used as the homebuyer’s primary residence.
- The property may consist of one to four units. For any property with two or more units, 85% of the projected rent of the other units must be included in the homebuyer’s income. An appraisal or current lease must be submitted when the funds are reserved.
- Some manufactured housing is eligible for Welcome Home assistance. Manufactured homes may be built in multi-sectional or single section units and must be installed on an FHA Title II permanent foundation system. The home and lot must be taxable together as real property. Single-section manufactured homes must be Energy Star-rated and documentation is required.
- Mobile homes are not eligible for the Welcome Home Program.
- Modular homes are eligible for the Welcome Home Program.
- If more than $500 is to be escrowed for buyer repairs, the property is ineligible for Welcome Home funds without advance written approval of the FHLB prior to closing.