| The
homebuyer grant program of the FHLBank of Pittsburgh
Through First
Front Door, the FHLBank will assist with closing cost and down payment
by matching a qualified homebuyer'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. To receive the full $5,000, a homebuyer would need to
contribute $1,667.
Participant
contributions can take the form of savings, a gift, tax refund,
inheritance or any other funds accumulated by the homebuyer. Contributions
may not take the form of another grant or forgivable loan.
Funds are available now on
a first-come, first-served basis until all funds are exhausted.
First Front Door money is provided by the FHLBank through a network
of nearly 60 banks.
Eligible
Properties
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, duplexes, condominiums and modular units.
Homebuyer
Eligibility Requirements
Each prospective
homebuyer must:
- Be a first-time
homebuyer (which means they have not owned a home within the past
three years, or they owned a home only while married but not as
a single person within the last 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. To check for
all states (use low income limit) click here.
- Complete
at least 4 hours of homeownership counseling from a participating
counseling organization, 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 cash back at loan closing.
(Buyers paying <15% for PITI may still qualify, but a more
thorough assessment of need is required.)
- Obtain a
first mortgage from a participating
bank.
- 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. If the homebuyer sells or moves from the home before
the five-year retenion period expires, a prorated portion of the
grant may be recovered and repaid to the FHLBank.
| How
First Front Door Works |
| Prospective
homebuyer calls or visits a participating member bank or asks
housing counseling agency or REALTOR® for referral |
 |
Participating
bank and homebuyer complete registration form and gather income
verification documentation |
 |
Participating
bank submits completed registration and income verification
documentation to the FHLBank |
 |
Within
10 business days, the FHLBank notifies participating bank of
registration approval and FFD amount or requests additional
information or documentation |
| |
 |
Within
6 months, prospective homebuyer attends and completes homeownership
counseling, buys home with participating bank providing a first
mortgage and advancing eligible grant amount |
 |
Participating
bank submits disbursement request with required documents
to the FHLBank within |
 |
FHLBank
disburses funds to participating bank |
|