Transcript Slide 1

Rural First-time Homebuyer Program (RFHP)
• Awards grant funds to stockholders to help low- and
moderate-income, first-time homebuyers purchase a
home in a rural area
• Maximum RFHP subsidy per household in 2009 is
$4,000
• Maximum amount per stockholder = $50,000 in March
and April. Due to the first-come, first-served structure of
the program, members are not guaranteed $50,000.
RFHP funded home
Member Registration
• There will only be one agreement form this year and it is
for all of the set aside programs: RFHP, TOP and
disaster related assistance
• FHLBank notifies member banks of funds available
• Members must submit agreements in order to submit
disbursement requests
• No registration deadlines; Set aside agreements will be
accepted from members at any time during the year.
• Agreements must be signed by an authorized signer
Rural First-time Homebuyer Program
• The maximum per member is increased by $25,000
each month beginning May 1 through August.
• There will be six monthly offerings of RFHP funding in
2009. The total RFHP allocation for the year will be
divided among the six periods. Disbursement periods
will open the first day of the month beginning in March
and ending in August this year.
RFHP Criteria
• First-time homebuyer with income (documented and
qualified by FHLBank Topeka guidelines) < 80% MRB
limits
• Home must be primary residence and located outside the
urbanized area of the central city of MSA
• Minimum of $500 down or documented sweat equity, no
cash back received
• Mandatory homebuyer education
• Set aside funds can only be requested by institutions that
are members of FHLBank. The lender must be the
member institution, USDA or a bona fide nonprofit housing
organization.
Eligible Uses of RFHP funds
• Down payment
• Closing costs
• Homebuyer education fees or rehabilitation costs
associated with purchase of home
• Rehabilitation costs for owner-occupied homes in
federally declared disaster areas to address disaster
related damage
• New construction to replace homes in federally
declared disaster areas
• Can only be used in conjunction with first mortgage
loans originated by FHLBank members
New for 2009
• Closing Costs – Points cannot exceed 1.5% and lender
fees cannot exceed 2.5% of the total loan amount
New in 2008
• No reservations (More than a third of approved
reservations in 2007 were not used)
• Rehabilitation of owner-occupied homes damaged in
federally declared disaster areas
• Waiver of first-time homebuyer requirement for homes
being rebuilt in a federally declared disaster area
Disaster Area Repair Assistance
• Set aside funds can now be used in rural federally
declared disaster areas
• Household does not have to be first-time homebuyer
• Set aside funds must be used for costs related to
damage associated with disaster and new construction
of homes in a federally declared disaster area
• Use Disaster Related funds request form on our
website for owner-occupied rehab. Use regular RFHP
funds request form for new construction.
Rural Location
• Rural = located outside of the urbanized area of the
central city of a Metropolitan Statistical Area (MSA)
• Examples of ineligible communities: Lincoln and
Omaha
$500 Down Payment or Equivalent
• Down payment
• Equity contribution (ex. lot on which new house was
built or sweat equity contributed through a self-help
housing program)
• Costs paid outside of closing
– provide documentation of cost of appraisal, loan
application, inspections, etc. if POCs are not shown
on HUD 1
• Gifts cannot be used as part of the $500 down payment
• Documented Sweat Equity – Self-help and Habitat
programs
Mandatory Homebuyer Education
• Complete “acceptable” homebuyer counseling program prior to
disbursement, including training provided by:
– HUD-approved Housing Counseling Agency
– FHLBank approved
– State Homebuyer Education Association Certified (ex. REACH,
OHEA)
• Provide certificate of completion or name of training agency
• Training based on a recognized homebuyer education program
• FHLBank Topeka prefers classroom counseling, though phone or
web-based training may be satisfactory depending on the
circumstances. A list of classes for each state is available on our
website.
Using RFHP to Pay Counseling Costs
• RFHP funds may be used to pay for counseling costs
only when:
– Incurred in connection with counseling of homebuyers
who purchase an RFHP-assisted unit
– Costs have not been covered by another source,
including the stockholder bank
Funds Disbursed
• Credited to stockholder demand-deposit
account
• Stockholders must disburse to eligible
households within 60 days after receiving set
aside funds.
Retention Period
• 5-year retention secured by lien requires:
– Notice of any sale or refinancing of the unit during
that period
– If sold, repayment of a pro rata share of the subsidy
upon sale, reduced by 1/60 per month for every
month the RFHP-assisted borrower owned the unit
or sale to an RFHP-qualified buyer
– If refinanced, FHLBank will subordinate its position
to the first lender
Targeted Ownership Program (TOP)
• Awards grant funds to stockholders to help first-time
homebuyers that have a disabled household member to
purchase a home.
• Funds up to $4,000 per qualified homebuyer.
• Cannot be used for RFHP or AHP assisted households.
• There will not be a separate TOP offering this year. All
set aside programs will begin March 1.
TOP Criteria
Same as RFHP except:
• TOP funds can be used in urban and rural
areas.
• Need proof of disability – social security
payment that shows individual is disabled or
medical documentation from physician.
• Disability means a physical or mental
impairment that substantially limits one or more
of the major life activities of an individual.
Changes to 2009 AHP Program
• One round of AHP for 2009 with a submission
deadline of May 1, 2009.
• Maximum amount of AHP in 2009 - $350,000.
FHLBank Topeka’s Housing and Community
Development Staff – 866.571.8155
• Chris Imming, Director and First VP, ext. 6029
– Dawn Harris, HCD Assistant, ext. 6030
• Mark Ward, Operations and Community Programs Manager, ext. 6037
– Noelle St. Clair – Community Dev. Specialist, ext. 6033
– Casey Howard, Compliance Specialist, ext. 6237
• Michele Carter, AHP Homeownership Supervisor, ext. 6032
– Utika Scales, HCD Specialist, ext. 6035
• Jeff Ragsdale, AHP Rental Supervisor, ext. 6034
– Amy Apitz, HCD Specialist, ext. 6031
RFHP/TOP information available at www.fhlbtopeka.com