Homeownership Set-Aside Program
Additional Funds Allocated to HSP on Oct. 2 | Read more
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. Homebuyers should contact an FHLBank member to apply for HSP grant funds.
2023 HSP Details
- HSP round opens March 6, 2023
- Funds available: a minimum of $4.5 million
- Maximum subsidy per household: $7,500
- Minimum subsidy per household: $2,500
- Member monthly limit: Effective July 6, 2023, the member monthly limit has been removed
- Reservations will be accepted on a first-come, first serve basis, subject to member limits through November 30, 2023
High-Cost Area HSP
FHLBank is excited to announce a new HSP for High-Cost Areas. First-time homebuyers purchasing homes in high-cost areas within FHLBank Topeka's district are eligible to receive up to $15,000 per household to assist with downpayment, closing costs or eligible repairs. High-cost areas will be allocated $750,000 of the annual AHP contribution. The funds will be available on a first-come, first-served basis of $45,000 in reservations per member, per month beginning March 6, 2023.The High-Cost Area HSP is a separate program from the 2023 HSP. Member limits, reservations, disbursements, etc. cannot be combined or transferred between the two programs. All general and income HSP eligibility guidelines and rules apply to both programs.
High-cost area is defined by the Federal Housing Finance Agency as counties in which 115% of the local median home value exceeds the baseline conforming loan limit as established annually. Members that originate home loans in high-cost areas should email hsp@fhlbtopeka.com to request participation in the High-Cost Area HSP.
- High-Cost Area HSP round opens March 6, 2023
- Funds available: $750,000
- Maximum subsidy per household: $15,000
- Minimum subsidy per household: $2,500
- Member monthly limit: Effective July 6, 2023, the member monthly limit has been removed
- Property being purchased must be located in a county in which 115% of the local median home value exceeds the baseline conforming loan limit, as established annually by the Finance Agency. See qualifying counties >>>
- Household must meet all general and income eligibility guidelines
- Adams County, CO
- Arapahoe County, CO
- Boulder County, CO
- Broomfield County, CO
- Clear Creek County, CO
- Denver County, CO
- Douglas County, CO
- Eagle County, CO
- Elbert County, CO
- Garfield County, CO
- Gilpin County, CO
- Jefferson County, CO
- Park County, CO
- Pitkin County, CO
- Routt County, CO
- San Miguel County, CO
- Summit County, CO
Registration
To participate in the HSP, an HSP Member Registration Agreement (Registration Agreement) must be on file with FHLBank. Members who registered for the 2020 HSP or a subsequent round, are no longer required to register annually and will automatically be registered for the HSP funding periods.
If your institution would like to register to participate in HSP, please contact HSP@fhlbtopeka.com for registration instructions.
Message to Homebuyers
The HSP is a program offered in partnership with FHLBank members. FHLBank does not work directly with homebuyers and does not originate home loans. Homebuyers will need to contact a participating member to apply for HSP grant funds.
Education
Homebuyer education must be provided by or based on one provided by, an organization experienced in homebuyer education. FHLBank has determined that the organizations listed below meet these criteria. The homebuyer education provider must be approved by one of these organizations to be accepted for HSP. Freddie Mac-approved providers can be found in AllRegs and Fannie Mae-approved providers can be found in the Selling Guide.
- United States Department of Housing and Urban Development (HUD): http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
- National Industry Standards of Homeownership Education and Counseling: https://homeownershipstandards.org/home/Home.aspx
- Federal National Mortgage Association: http://www.fanniemae.com
- Federal Home Loan Mortgage Corporation: http://www.freddiemac.com
- Habitat for Humanity
General Homebuyer Education Requirements:
Homebuyer education must be completed within the current or previous calendar year of the purchase closing date. The date of course completion must be visible on the homebuyer education certificate.
Only one adult household member must complete the homebuyer education course and be named on the certificate.
The provider must sign the certificate if the course is taken in a classroom or face-to-face setting. The homebuyer must sign the certificate if the course is taken online.
If Homebuyer Education is taken through an online platform, such as EHomeAmerica, ensure the provider meets FHLBank Requirements. EHomeAmerica is not the Homebuyer Education provider.
FHLBank recommends the required homebuyer education course be taken prior to the loan closing.
Resources
Fourth Quarter 2023 Maximum Mortgage Rates
- First Mortgage: 9.49
- Second or Subsequent Mortgage: 11.49
Member Authorization Forms
AHP/HSP Authorization Form identifies your institution's officers, employees and/or agents who are authorized to complete and execute applications, agreements, disbursements requests, reservations, forms and other documents related to the AHP and HSP. Use the AHP/HSP Authorization Form only if your institution has NEVER submitted an AHP/HSP Authorization Form to FHLBank.
AHP/HSP Authorization Form - Supplemental allows you to designate a new authorized user to the AHP/HSP Authorization Form on file with FHLBank Topeka. Use the AHP/HSP Supplemental Form to add new authorized users for AHP/HSP Online. If you need to remove an authorized user email hsp@fhlbtopeka.com.
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