Through First Front Door (FFD), FHLBank Pittsburgh (Bank) will assist with closing cost and down payment assistance by matching a qualified homebuyer’s contribution 3-to-1. For every $1 of contribution the homebuyer makes, the Bank 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. Homebuyer contributions can take the form of savings, a gift, a tax refund, an inheritance or any other funds accumulated by the homebuyer. Contributions may not include another grant or forgivable loan. Funds are available on a first-come, first-served basis until all funds are exhausted. FFD grants are provided by the Bank through a network of participating member institutions.
Eligible Properties Qualified first-time homebuyers can use FFD grants toward closing costs and down payment assistance on eligible properties that are intended as the primary residence of the homebuyer at the time of program enrollment. These properties include single-family homes, townhomes, condominiums and modular units. Manufactured homes may be eligible if they are permanently affixed to a site. Investment properties are not eligible for FFD assistance.
Homebuyer Eligibility Requirements
Each prospective homebuyer must:
- Be a first-time homebuyer (which means you have not owned a home within the past three years, or owned a home only while married but not as a single person within the last three years – this includes a married couple if either has not owned a home in the past three years).
- Contribute personal funds as part of the down payment and closing costs.
- Have an income at or below 80 percent of the area median income at the time of FFD program enrollment and not have assets in excess of $50,000 (excluding retirement accounts).
- Not be a student working less than 30 hours per week.
- Complete at least four hours of homeownership counseling from an approved counseling agency prior to the purchase of the home. Counseling must include the topic of predatory lending. Approved counseling agencies have received accreditation from one of the following organizations:
- The U.S. Department of Housing and Urban Development (HUD)
- National Industry Standards
- Your State or State’s Housing Finance Agency (to find their approved counseling agencies, check their website).
- A participating member institution that is offering the FFD program.
- Online counseling provided by eHome America Homebuyer Education and Certification.
- Pay at least 15 percent of monthly household income for principal, interest, taxes and insurance (PITI).
- NOT receive more than $250 cash back at loan closing.
- Obtain a first mortgage from a participating member institution.
- Retain the home for five years from the loan closing date 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 moves or sells the home before the five-year retention period expires, a prorated portion of the grant may need to be repaid.
Contact Us for more information on how to take advantage of this great program!
