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Homebuyer Grants

Empowering Homebuyers: FHLB's HSP and HOPE Grant Programs

The Homeownership Set-aside Program (HSP) and Homeownership Possibilities Expanded (HOPE) programs are scheduled to begin accepting applications on March 4, 2024.
 
With inflation, interest rates, and the cost of housing on the rise, buying a house can seem out of reach for some.  In an effort to promote affordable housing and community development, Flatwater Bank is again partnering with the Federal Home Loan Bank of Topeka (FHLBank Topeka) to offer two programs.  The Homeownership Set-aside Program (HSP) and Homeownership Possibilities Expanded Program (HOPE).  It’s important prospective homebuyers understand both programs and how they may assist their homebuying process.  Both of these grant programs are designed to assist with down payment, closing costs and eligible repairs.  A borrower must have a property identified prior to securing the grant funds. 

The HSP program is specifically targeted for first-time homebuyers.  The maximum subsidy for a household is $15,000 with the minimum subsidy being $2,500.  The household income must be at or below 80% of the area median income.  A homebuyer education class is required upon approval for the grant funds. 

The HOPE program is NOT limited to first-time homebuyers but is rather meant to help close the gap for homeowners that traditionally do not receive the support provided with the HSP Grant Program.  The maximum subsidy for a household is $12,500 with the minimum subsidy being $2,500.  The household income must be at or below 150% of the area median income.  A homebuyer education class is not required. 

March 29, 2024 Update:  As of this date, the maximum limit for HOPE funds allocated has been met.  If you think you may qualify for this program, contact us to be put on a contact list in the event additional funds become available.

Income limits and other restrictions apply to both programs, and acceptance to both programs is on a first-come, first-serve basis, subject to qualification.  Homeowners interested in either program can contact our mortgage department at 308-537-7181 to discuss if they qualify.

Flatwater Bank is an Equal Housing Lender, NMLS# 1091285 Member FDIC
First-time home buyer is defined as ALL borrowers, co-borrowers and co-owners of the transaction, who do not own and are not investors in another residence, and who wish to purchase a home that will be their primary residence.

In addition, the homebuyer(s) must meet any one of the following criteria:
  • Have had no ownership in a residence during the prior three-year period ending on the date of purchase of the property;
  • Have only owned a residence not permanently affixed to a permanent foundation in accordance with applicable Regulations;
  • Has only owned a property that was not in compliance with State, local or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure; or
  • Is a household displaced as a result of a Federally Declared Disaster (as designated by FEMA) within 24 month of grant application.
Household includes ALL individuals who currently, or will, occupy the house or residence. Including:
  • Non-borrowing adults and children
  • Children and adults that will occupy the residence at any time during the year
Households must agree to use the subsidies to pay for down payment, closing cost, homebuyer education, or allowable repairs in connection with the household's purchase of a home to be used as the household's primary residence.

Allowable repairs: A subsidy may be used to pay for rehabilitation including, but not limited to accessibility, roof, electrical, plumbing, sewer, mechanical, foundation or other structural, windows, doors, floor coverings, wall repair, paint, or hazardous material remediation.

Ineligible Rehabilitation/Repair Costs: A subsidy cannot be used to pay for rehabilitation including, but not limited to construction/repairs of a detached garage or outbuilding, household repair labor (sweat equity), luxury items (i.e., landscaping, hot tubs, swimming pools).