“What we liked best about the HSP was that we could take advantage of current market interest rates, not special established interest rates, which can push first-time homebuyers out of the loan.”
Dana Ezell | Republic Bank & Trust | SVP, Director of Mortgage Administration
FHLBank Topeka sets aside funds annually within the Affordable Housing Program (AHP) to assist very low, low-, and moderate-income first-time homebuyers.
The Homeownership Set-aside Program (HSP) provides down payment, closing cost and repair assistance to first-time homebuyers earning at or below 80% of the Area Median Income (AMI) for households purchasing or constructing homes in Colorado, Kansas, Nebraska and Oklahoma. The HSP is provided to households as a forgivable grant with a five-year retention period.
This program is a partnership with FHLBank members. Members work with qualified homebuyers, submit documents to FHLBank, provide the grant funds at closing and request reimbursement of the funds after closing.
2020 HSP Details
- HSP round opens March 2, 2020.
- Funds made available: a minimum of $7.2 million
- Maximum subsidy per household: $5,000
- Minimum subsidy per household: $2,500
- Reservations will be accepted from members on a first-come, first-served basis, subject to member limits, through Nov. 30, 2020, pending availability of funds. Disbursement requests must be submitted by members to FHLBank within 90 days of reservation approval.