FHLB Cincinnati Launches Welcome Home Program with $20,000 Grants for Homebuyers
The Federal Home Loan Bank of Cincinnati (FHLB) is excited to announce the upcoming launch of its Welcome Home Program (WHP), set to open at 8:00 a.m. Eastern Time on March 3, 2025. This initiative is designed to support low- and moderate-income homebuyers by offering grants of up to $20,000. These funds can be utilized for down payment assistance and closing costs, making homeownership more accessible to a wider audience.
One of the key aspects of the WHP is its first-come, first-served basis for funding. This means that prospective homebuyers should act quickly to secure their grants, as funds may be reserved rapidly. All reservations must be processed through a member financial institution of the FHLB that is offering the mortgage. Throughout Kentucky, Ohio, and Tennessee, numerous financial institutions are participating in the program, and a list of eligible members can be found on the official FHLB Cincinnati website at www.fhlbcin.com.
Andy Howell, the President and CEO of FHLB Cincinnati, expressed the urgency of this program, stating, "We continue to see the barriers to entering the housing market grow throughout Kentucky, Ohio, and Tennessee. As housing prices have increased throughout our District, saving for higher down payments and closing costs can be a challenge. A $20,000 Welcome Home Program grant can bring homeownership back within reach for many." This highlights the significant financial challenges faced by individuals in the current housing market.
Prospective participants in the Welcome Home Program should familiarize themselves with the program guidelines:
Since its inception in 1998, the Welcome Home Program has made a significant impact with over $199 million in grants awarded to more than 39,000 households, providing a pathway to homeownership for many families. The WHP is part of FHLB’s broader Affordable Housing Program, which has allocated over $640 million toward the development of more than 91,000 affordable housing units since 1990.
The FHLB operates as a cooperative, AA+ rated bank, owned by 607 financial institutions, including banks, credit unions, and insurance companies across Kentucky, Ohio, and Tennessee. They provide members with essential financial products, and the organization’s primary goal is to promote community development through affordable housing solutions. For anyone interested in participating in the Welcome Home Program, reaching out to a member financial institution as soon as possible is highly recommended to ensure they can access this valuable assistance when the program opens.
One of the key aspects of the WHP is its first-come, first-served basis for funding. This means that prospective homebuyers should act quickly to secure their grants, as funds may be reserved rapidly. All reservations must be processed through a member financial institution of the FHLB that is offering the mortgage. Throughout Kentucky, Ohio, and Tennessee, numerous financial institutions are participating in the program, and a list of eligible members can be found on the official FHLB Cincinnati website at www.fhlbcin.com.
Andy Howell, the President and CEO of FHLB Cincinnati, expressed the urgency of this program, stating, "We continue to see the barriers to entering the housing market grow throughout Kentucky, Ohio, and Tennessee. As housing prices have increased throughout our District, saving for higher down payments and closing costs can be a challenge. A $20,000 Welcome Home Program grant can bring homeownership back within reach for many." This highlights the significant financial challenges faced by individuals in the current housing market.
Prospective participants in the Welcome Home Program should familiarize themselves with the program guidelines:
- - The combined income of all occupants of the home must not exceed 80 percent of the Mortgage Revenue Bond (MRB) limit set for the county and state where the property is located.
- - Homebuyers are required to contribute a minimum of $500 toward their home purchase.
- - First-time homebuyers must complete an approved homeownership counseling program.
- - Grants are aimed solely at those who qualify for the first mortgage based on their individual financial situation. Non-occupant co-borrowers and co-signers are not eligible.
- - The interest rate on the first mortgage should not exceed 9.875 percent.
- - Properties assisted with WHP funds will be subject to a five-year retention mechanism. This may require the homeowner to repay all or a portion of the grant if they sell or refinance within five years of their transaction closing.
Since its inception in 1998, the Welcome Home Program has made a significant impact with over $199 million in grants awarded to more than 39,000 households, providing a pathway to homeownership for many families. The WHP is part of FHLB’s broader Affordable Housing Program, which has allocated over $640 million toward the development of more than 91,000 affordable housing units since 1990.
The FHLB operates as a cooperative, AA+ rated bank, owned by 607 financial institutions, including banks, credit unions, and insurance companies across Kentucky, Ohio, and Tennessee. They provide members with essential financial products, and the organization’s primary goal is to promote community development through affordable housing solutions. For anyone interested in participating in the Welcome Home Program, reaching out to a member financial institution as soon as possible is highly recommended to ensure they can access this valuable assistance when the program opens.
Topics Financial Services & Investing）
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