Expanding Homeownership Opportunities through FHLB Grants

Buying a home can feel out of reach for many individuals and families, especially when it comes to saving for a down payment and closing costs. Even if you can afford a monthly mortgage payment, saving up the money for a down payment and closing costs can feel like a monumental hurdle. 

Andrews Federal has programs available to help with homeownership, especially for first-time homebuyers. Through the FHLB program, homebuyers can access funds to help with closing costs and/or down payment, so they can move from dreaming about a home to signing the papers and sealing the deal. 

How Andrews Federal Works Can Support Homebuyers with Grant Funds

Andrews Federal is part of the Federal Home Loan Bank System, a nationwide network of banks created to support housing and community development. Financial institutions within the FHLB system are provided funds they can use to offer housing assistance to qualified homebuyers. Some of the grant funds are available to both first-time homebuyers (defined as people who have not bought a home in three years) as well as to other homebuyers who may already own or have purchased property in the past. 

Buyers who qualify for a grant may be able to use the financial assistance for: 

• Down payments

• Closing costs

• Homebuyer education expenses

• Other eligible home purchase costs

You may even qualify for special “hometown heroes” bonuses for working in a field that supports others - such as the medical field, education, police, firefighters or other first responders. The best way to determine what you qualify for is to reach out to our mortgage team directly. 

How the Homebuyer Grant Program Works

The process for homebuying grants can be different depending on the situation, especially as the mortgage process can be complex. However, generally, you can expect the following steps: 

1. You apply for a mortgage. 
   Once we have your application information, we can determine whether you meet the eligibility requirements for a loan and whether you may qualify for any additional support.

2. The lender submits a request for assistance through the FHLB program.
   As your lender, we will reach out to the FHLB program and see what funds are available for you. Funding is limited and typically distributed on a first-come, first-served basis, so applying sooner may make it more likely that you get support with your down payment/closing costs. 

3. If approved, the assistance is applied to the home purchase.
   Funds are usually applied at closing to help reduce your out-of-pocket costs.

In many cases, FHLB assistance is provided as a grant that does not need to be repaid, provided certain occupancy and program requirements are met.

Who May Benefit From the Program?

FHLB housing assistance programs are designed to help low- to moderate-income homebuyers, as well as certain first-time buyers.

You may benefit from this program if you:

• Are purchasing your first home

• Meet income eligibility guidelines

• Need help covering down payment or closing costs

• Plan to use the home as your primary residence

If you’re not sure whether you might qualify, reach out to our mortgage lending team. We can walk you through the process and ensure you are getting access to all available options that could bring down the total upfront costs associated with homebuying. 

Turning Homeownership Goals Into Reality

Homeownership is an important financial milestone and a powerful way to build long-term stability. Andrews Federal Credit Union is committed to helping members move closer to their homeownership goals, and to providing resources that put homeownership within reach for more people. 

If you’re thinking about buying a home, now may be the perfect time to explore your options. Reach out to our mortgage team today to get started.