First Time Homebuyer Grant Money available in Richmond, VA

The FHLB grant program for lower income first time homebuyers.  This program provides a 4 to 1 matching subsidy for borrower’s own funds up to $7,500 per qualified borrower.  Program details are below:
·        4 to 1 matching funds up to $7,500K.  For example, a borrower who uses $1,875 of their own funds can be matched with the full $7,500 grant
·        Single parents & displaced homemakers who were on title to marital property within last 3 years still qualify as first-time homebuyers
·        Owner occupant only (non-occupant coborrowers ok AND they do not count toward household income limits)
·        Single family dwelling only (condos and townhouses OK)
·        US citizens and permanent resident aliens eligible
·        Minimum $1,000 borrower contribution (gift from family OK for matching)
·        Funds cannot be used for discount points or cash back to borrower at closing (including refund of EMD).  Any excess would be applied to principal or payment
·        Can be used in concert with other programs such as HOME, VHDA, FHA, USDA
·        Available annually until “set-aside” funds are exhausted
·        The grant/matching is in the form of a forgivable 2nd mortgage.  Maximum combined loan-to-value 105% (108% for VA and USDA)
·        Homebuyer counseling required (after purchase contract and loan application)
·        Income to be included in calculation includes “received regularly” child support, social security, and other periodic payments
·        5 year retention agreement (recapture) – If the home is sold within 5 years with a gain on the sale, the pro-rata match must be repaid, unless the home is sold to another moderate-income household
·        Unborn children qualify toward household size
HOUSEHOLD income limits for this program (80% of area median) are (as of 4/26/11):
1 person -   $41,400      2 persons -  $47,300      3 persons -  $53,200
4 persons -  $59,100      5 persons -  $63,850      6 persons -  $68,600