First Time Home Buyers Grants ~ Hampton Roads Real Estate Ramblings

First Time Home Buyers Grants

Tuesday, May 11, 2010

Hello Hampton Roads,

For those first time home buyers who may have missed out on the $8000 tax credit, there are still other options for first time home buyers grants! Specifically, I am referring to the first time home buyer's grant offered by Federal Home Loan Bank Atlanta (FHLBank Atlanta).

FHLBank Atlanta is one of 12 district banks in the Federal Home Loan Bank System, and as of April 30, 2010 has FHP (First Time Home Buyer Program) Funds available in the amount of: $10,562,538.

FHLBank Atlanta has member banks in the state of Virginia which offer eligible buyers, on a first come, first served basis, a first time home buyer's grant up to $7,500.00 per household.

But if you are interested, you better hurry because the money ran out last year in about 4 months!

The grant is awarded on a 5:1 basis meaning that as long as eligbile home buyers contribute $1500 of their own money, they can received $7500.00 in available grant funding.

The grant money is essentially a silent second mortgage which is forgiven over a 5 year time line--1/5 of the amount is foregiven for every year that the house is the buyer's primary residence.

There are several member banks in Hampton Roads:
  • ABNB Federal Credit Union
  • Monarch Bank
  • 1st Advantage Federal Credit Union
  • BayPort Credit Union
  • Virginia Company Bank
  • Bank of Hampton Roads
  • Bank of the Commonwealth
  • Heritage Bank and Trust
  • Northern Star Credit Union, Inc.
  • Towne Bank
  • Xenith Bank
  • Bank @LANTEC

The FHP grant funds can only be for a downpayment or closing costs and must be shown on the HUD 1 settlement statement. The funds cannot be used to refund earnest money or to pay the buyer cash at closing. For more information please feel free to contact me for your housing needs and I will put you in touch with a reputable lender!


Thanks for Reading,
 
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