Homebuyer Eligibility

In order to receive Welcome Home funding, homebuyers must meet all of the following

eligibility requirements:

• Total household income must be at or below 80% of MRB income limits, as adopted

by the appropriate state housing finance agency, for the county where the property is

located, and adjusted for family size. MRB limits for KY, OH, and TN are available at

http://www.fhlbcin.com. The income calculation will be based off of the limits in place at the

time the program opens.

• Homebuyers must contribute at least $500 of their own funds toward down payment

and closing costs (60% of these funds may be received as a gift).

Funds received from sellers, non-profit or other organizations, including state and

local government agencies, for down payment assistance grants are not considered

“gifts” and cannot be used to reduce the homebuyers’ required contribution.

Funds paid for items outside of closing, such as hazard insurance, taxes, application

fees, and other items related to the purchase are considered as part of the

homebuyer’s required contribution. Such items should be shown on the Closing

Disclosure or with other documentation.

• Applicants do not have to be first-time homebuyers (See Definitions). However, all

first-time homebuyers must complete a homebuyer counseling program. The first

paragraph of the reservation approval letter indicates FHLB’s first-time homebuyer

determination. The counseling program must be provided by, or be based on one

provided by, an organization recognized as experienced in homeownership counseling.

The counseling does not have to be provided by a HUD approved agency but must cover,

at minimum, mortgage financing, credit-worthiness, household budgeting, and home

maintenance. The FHLB does not approve or endorse any particular counseling agency or course.

Property Eligibility

• Any one to four-unit property to be used as the homebuyer’s residence is eligible for

Welcome Home assistance. However, for any property with two or more units, 85% of

the projected rent of the other units must be included in the homebuyer’s income. An

appraisal or current lease must be submitted at time of funds reservation to

document this income.

• Some manufactured housing is eligible for Welcome Home assistance. An appraisal is

required at time of funds reservation to verify eligibility. “Manufactured housing”

refers to a single-family residential dwelling built in compliance with the Federal

Manufactured Housing and Construction Standards, as amended, also known as the HUD

Code, after June 15, 1976. Manufactured homes may be built in multi-sectional or single

section units and installed on an FHA Title II permanent foundation system. In addition,

the home and lot must be taxable together as real property. For Welcome Home

eligibility purposes, a single section manufactured home must be Energy Star rated.

Welcome Home funds may not be used for any other type of manufactured or mobile

homes. Documentation verifying the above conditions have been met must be provided

and may include an FHA appraisal or an independent appraisal.

“Modular Home” refers to a home built to the State or Local Code where the home will be

located. Sectional units are built in a production facility, transported to the site and

assembled onsite. Modular homes are eligible collateral for the Welcome Home Program.

“Mobile Home” refers to a residential structure manufactured prior to the enactment of the Federal Manufactured Housing and Construction Standards, also known as the HUD

Code, on June 15, 1976. Mobile homes are not eligible collateral for the Welcome Home

Program.

• The housing assisted with Welcome Home funds must be subject to a legally

enforceable restriction in the warranty deed or restrictive covenant to the warranty

deed requiring that the FHLB be given notice of any refinancing, sale, foreclosure,

conveyance by deed-in-lieu of foreclosure, assignment of the first mortgage to the

Secretary of HUD, or change in ownership of the unit prior to the end of a five-year

retention period. Homebuyers may be required to pay back a pro rata amount of the

Welcome Home grant if the home is sold or refinanced during the five-year retention

period. The specific retention language required is available at www.fhlbcin.com.www.fhlbcin.com.

• Welcome Home may be used only in transactions which convey full title to the

homebuyer. Welcome Home may not be used with lease-purchase or land contracts.

• Welcome Home may be used for new home construction. The Welcome Home

reservation is valid until December 3, 2020 but any construction must be complete, the

first mortgage permanent loan must be closed (or the construction/permanent loan must

be converted to permanent), and funds must be requested no later than December 3, 2020.

Welcome Home funds may not be used for the construction loan financing, only the

permanent loan.

• The FHLB reserves the right to determine whether or not a property is considered

eligible.

Eligible Uses of Funds

• Welcome Home funds may be used to fund reasonable down payment and closing

costs incurred in conjunction with the acquisition of an eligible property by eligible

homebuyers.

• Welcome Home grants may not exceed $5,000 per homebuyer, as determined by the

FHLB.

• Welcome Home funds may be used in conjunction with other local, state, and

federal funding sources and with the FHLB’s Community Investment Cash Advance

programs. However, Welcome Home funds may not be used with an existing or future

award through the FHLB’s competitive Affordable Housing Program or through any of

the FHLB’s voluntary housing programs.

• A portion of the funds awarded may be used to pay for the reasonable costs of

counseling (not to exceed $300) for homebuyers purchasing Welcome Home assisted

housing if the cost is not covered by another funding source.

• Welcome Home is not intended for any purchases requiring any significant repair

or rehabilitation.

ο If more than $500 is to be escrowed for repairs from the buyer, the property is not

eligible for Welcome Home funds without the advance written approval of the FHLB

prior to closing. If the Closing Disclosure reflects an escrow for repairs and the

Member did not seek approval prior to closing the loan, funds may not be

disbursed.

ο If any funds are escrowed for repairs, the funds must come either from the seller or

from the buyer’s own funds, in addition to the required $500 homebuyer cash

contribution.

If any funds are escrowed for repairs from the buyer, Welcome Home funds will not

be disbursed until the Member certifies that:

1) All repairs were required for mortgage approval as evidenced by the appraisal;

2) All repairs have been completed; and

3) All escrowed funds have either been disbursed or released.

ο All payments from escrow funds for repairs should be made only by the Member or

closing agent and such payments should be made directly to the materials and/or

service providers. Under no condition should escrowed funds be given to the

homebuyer.

If any unused escrowed funds are released to the homebuyer, the Welcome Home

grant will be reduced by a like amount. In lieu of releasing unused funds to the

homebuyer, the unused funds may be applied as a prepayment of the first mortgage

principal.

Ineligible Uses of Funds

• Welcome Home funds may not be used for any other purposes except those

specifically stated above. Welcome Home funds may not be used to pay for significant

repairs (i.e. repairs in excess of $500), pay off consumer debt, pay off judgments, buy

down the mortgage rate, etc. If the FHLB determines that funds were used for an

ineligible expense, the grant will be reduced by the amount of the ineligible expense

unless the homebuyer brings adequate funds to the closing to meet the required $500

homebuyer cash contribution and cover the amount of the ineligible expense.

• Welcome Home funds may not be used for any loan with co-borrowers or co-signors

unless they will occupy the home as their primary residence and their incomes are

included in determining eligibility. Welcome Home funds are intended only for

homebuyers who qualify for the first mortgage based on their own merit, not relying on

others as co-signors, co-borrowers, or guarantors, and not relying on any expected but

uncertain change in job status or income or other circumstances.

• Welcome Home funds may not be used for any loan with collateral other than the

subject property. Blanket loans (loans with cars, boats, CD’s, or other property secured

as additional collateral) are not eligible.

• Welcome Home funds may not be used in transactions involving a second mortgage

provided by an individual seller. Second mortgages provided by formal organizations,

including financial institutions, Community Development Financial Institutions, housing

finance agencies, non-profit organizations, etc. are acceptable.

Reserving Welcome Home Funds

Funds will be allocated “first-come, first-served.” Members are not guaranteed any specific amount of Welcome Home funds.

Funds will be reserved only for specific homebuyers purchasing specific homes and

reservations cannot be transferred to other homebuyers or to other properties. The

Reservation Request and Request for Payment of Reserved Funding can only be submitted through the Members Only portal at http://www.fhlbcin.com.

• To request that funds be reserved for a homebuyer, the Member must:

Access the FHLB’s Member’s Only portal at http://www.fhlbcin.com.

For assistance in accessing the Member’s Only portal, please contact the Member’s Only

Administrator at your institution or contact the FHLB’s Service Desk at 800-781-

3090 (8:30 – 5:00PM ET);

Click on Housing Program Forms, Welcome Home Program and complete a

Reservation Request; and Upload and attach the following required documents to the Reservation Request form

(All documents must be uploaded as one attachment. Note: The attachment file name

should not contain special characters, such as @, &, #,*, etc.):

1) A completed, signed and dated loan application (generally a Uniform Residential

Loan Application);

2) Third party documentation for all sources of current year income for all persons,

age 18 or older, who will reside in the home. (Reference the Income Eligibility

Guide);

3) An appraisal is required if the subject property is a manufactured home.

• A Reservation Request will be denied if a fully executed loan application is not

submitted. Stating it is a phone or internet application is not acceptable. The loan

application MUST be signed.

• Do not submit documentation that is not required such as purchase contracts, W-2s, bank statements, credit reports, tax returns (unless self-employed), etc. as this slows down th review process.

• Please note that during periods of peak demand it may take four weeks to review and

approve a Reservation Request. If the information submitted is incomplete, it might take

longer. Funds are not reserved and the loan should not close using Welcome Home funds

until the FHLB has given approval.

• A homebuyer is considered “enrolled” in the Welcome Home Program at the time the

Reservation Request is received. Income eligibility will be determined based on income

documentation required at time of enrollment and will be based on the household’s

income at that time.

• The FHLB will perform a preliminary review of the Reservation Request and the

supporting documentation submitted to determine the eligibility of the homebuyer, the

availability of funds in the program, and the availability of funds for the Member. If any

of the information is incomplete, additional documentation or information may be

required and additional time will be required to process the request. A Request for

Additional Information, describing the documentation needed, will be sent to the

designated Member contact. All additional information must be scanned and emailed to

the person requesting it within five business days or the Reservation Request will be

denied.

• Written notification will be provided to the Member as to the homebuyer’s eligibility and date of reservation expiration. Submission of the Reservation Request does not

constitute a reservation of funds; funds are reserved only upon written notification

from the FHLB. The loan should not close prior to receiving a reservation approval

or Welcome Home funds may not be disbursed.

• Changes made to the purchase price, loan amount, loan type, interest rate, or loan term

after the reservation has been approved, do not require FHLB approval. All of the final

numbers will be identified when the Request for Payment of Reserved Funding is

reviewed.

Withdrawing a request

If a Member has submitted a Reservation Request and then realizes the transaction will not close, they should send an email to welcomehome@fhlbcin.com with the project number, homebuyer’s name and statement that the Reservation Request should be withdrawn.

Use the 80% limits for the Welcome Home Program.

Use the 100% limits for the Disaster Reconstruction Program.

Kentucky Welcome Home Grant Income Limits for 2020👇👇👇👇

Kentucky

County 100% limits 80% limits 1-2 Persons 3+ Persons 1-2 Persons 3+ Persons Adair $75,240 $87,780 $60,192 $70,224 Allen $75,240 $87,780 $60,192 $70,224 Anderson $68,800 $79,120 $55,040 $63,296 Ballard $62,700 $72,105 $50,160 $57,684 Barren $62,700 $72,105 $50,160 $57,684 Bath $75,240 $87,780 $60,192 $70,224 Bell $75,240 $87,780 $60,192 $70,224 Boone $81,300 $93,495 $65,040 $74,796 Bourbon $89,400 $104,300 $71,520 $83,440 Boyd $62,700 $72,105 $50,160 $57,684 Boyle $75,240 $87,780 $60,192 $70,224 Bracken $97,560 $113,820 $78,048 $91,056 Breathitt $75,240 $87,780 $60,192 $70,224 Breckinridge $75,240 $87,780 $60,192 $70,224 Bullitt $76,400 $87,860 $61,120 $70,288 Butler $75,240 $87,780 $60,192 $70,224 Caldwell $62,700 $72,105 $50,160 $57,684 Calloway $62,700 $72,105 $50,160 $57,684 Campbell $81,300 $93,495 $65,040 $74,796 Carlisle $75,240 $87,780 $60,192 $70,224 Carroll $75,240 $87,780 $60,192 $70,224 Carter $75,240 $87,780 $60,192 $70,224 Casey $75,240 $87,780 $60,192 $70,224 Christian $60,900 $70,035 $48,720 $56,028 Clark $89,400 $104,300 $71,520 $83,440 Clay $75,240 $87,780 $60,192 $70,224 Clinton $75,240 $87,780 $60,192 $70,224 Crittenden $75,240 $87,780 $60,192 $70,224 Cumberland $75,240 $87,780 $60,192 $70,224 Daviess $68,500 $78,775 $54,800 $63,020 Edmonson $75,240 $87,780 $60,192 $70,224 Elliott $75,240 $87,780 $60,192 $70,224 Estill $75,240 $87,780 $60,192 $70,224 Fayette $74,500 $85,675 $59,600 $68,540 Fleming $75,240 $87,780 $60,192 $70,224 Floyd $75,240 $87,780 $60,192 $70,224 Franklin $68,200 $78,430 $54,560 $62,744 Fulton $75,240 $87,780 $60,192 $70,224 Gallatin $97,560 $113,820 $78,048 $91,056 Garrard $75,240 $87,780 $60,192 $70,224 Grant $75,240 $87,780 $60,192 $70,224 Graves $62,700 $72,105 $50,160 $57,684 Grayson $75,240 $87,780 $60,192 $70,224 Green $75,240 $87,780 $60,192 $70,224 Greenup $62,700 $72,105 $50,160 $57,684 Hancock $68,500 $78,775 $54,800 $63,020 Hardin $67,600 $77,740 $54,080 $62,192 Harlan $75,240 $87,780 $60,192 $70,224 Harrison $75,240 $87,780 $60,192 $70,224 Hart $75,240 $87,780 $60,192 $70,224 Henderson $67,200 $77,280 $53,760 $61,824 Henry $91,680 $106,960 $73,344 $85,568 Hickman $75,240 $87,780 $60,192 $70,224 Hopkins $75,240 $87,780 $60,192 $70,224 Jackson $75,240 $87,780 $60,192 $70,224 Jefferson $76,400 $87,860 $61,120 $70,288 Jessamine $74,500 $85,675 $59,600 $68,540 Johnson $75,240 $87,780 $60,192 $70,224 Kenton $81,300 $93,495 $65,040 $74,796 Knott $75,240 $87,780 $60,192 $70,224 Knox $75,240 $87,780 $60,192 $70,224 Larue $81,120 $94,640 $64,896 $75,712 Laurel $62,700 $72,105 $50,160 $57,684 Lawrence $75,240 $87,780 $60,192 $70,224 Lee $75,240 $87,780 $60,192 $70,224 Leslie $75,240 $87,780 $60,192 $70,224 Letcher $75,240 $87,780 $60,192 $70,224 Lewis $75,240 $87,780 $60,192 $70,224 Lincoln $75,240 $87,780 $60,192 $70,224 Livingston $62,700 $72,105 $50,160 $57,684 Logan $75,240 $87,780 $60,192 $70,224 Lyon $63,600 $73,140 $50,880 $58,512 Madison $75,240 $87,780 $60,192 $70,224 Magoffin $75,240 $87,780 $60,192 $70,224 Marion $75,240 $87,780 $60,192 $70,224 Marshall $62,700 $72,105 $50,160 $57,684 Martin $75,240 $87,780 $60,192 $70,224 Mason $75,240 $87,780 $60,192 $70,224 McCracken $62,700 $72,105 $50,160 $57,684 McCreary $75,240 $87,780 $60,192 $70,224 McLean $82,200 $95,900 $65,760 $76,720 Meade $62,700 $72,105 $50,160 $57,684 Menifee $75,240 $87,780 $60,192 $70,224 Mercer $63,200 $72,680 $50,560 $58,144 Metcalfe $75,240 $87,780 $60,192 $70,224 Monroe $75,240 $87,780 $60,192 $70,224 Montgomery $75,240 $87,780 $60,192 $70,224 Morgan $75,240 $87,780 $60,192 $70,224 Muhlenberg $62,700 $72,105 $50,160 $57,684 Nelson $79,320 $92,540 $63,456 $74,032 Nicholas $75,240 $87,780 $60,192 $70,224 Ohio $75,240 $87,780 $60,192 $70,224 Oldham $76,400 $87,860 $61,120 $70,288 Owen $75,240 $87,780 $60,192 $70,224 Owsley $75,240 $87,780 $60,192 $70,224 Pendleton $97,560 $113,820 $78,048 $91,056 Perry $75,240 $87,780 $60,192 $70,224 Pike $75,240 $87,780 $60,192 $70,224 Powell $75,240 $87,780 $60,192 $70,224 Pulaski $75,240 $87,780 $60,192 $70,224 Robertson $75,240 $87,780 $60,192 $70,224 Rockcastle $75,240 $87,780 $60,192 $70,224 Rowan $75,240 $87,780 $60,192 $70,224 Russell $75,240 $87,780 $60,192 $70,224 Scott $89,400 $104,300 $71,520 $83,440 Shelby $76,200 $87,630 $60,960 $70,104 Simpson $62,700 $72,105 $50,160 $57,684 Spencer $91,680 $106,960 $73,344 $85,568 Taylor $62,700 $72,105 $50,160 $57,684 Todd $75,240 $87,780 $60,192 $70,224 Trigg $60,900 $70,035 $48,720 $56,028 Trimble $91,680 $106,960 $73,344 $85,568 Union $62,700 $72,105 $50,160 $57,684 Warren $62,700 $72,105 $50,160 $57,684 Washington $75,240 $87,780 $60,192 $70,224 Wayne $75,240 $87,780 $60,192 $70,224 Webster $75,240 $87,780 $60,192 $70,224 Whitley $75,240 $87,780 $60,192 $70,224 Wolfe $75,240 $87,780 $60,192 $70,224 Woodford $74,500 $85,675 $59,600 $68,540

If you want a personalized answer for your unique situation call, text, or email me or visit my website below:

Text/call: 502-905-3708



Joel Lobb

Mortgage Loan Officer

Individual NMLS ID #57916

American Mortgage Solutions, Inc.

10602 Timberwood Circle

Louisville, KY 40223

Company NMLS ID #1364

38.234712 -85.574855

10602 Timberwood Cir #3, Louisville, KY 40223, USA Share this: LinkedIn

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