COLUMBUS, Ohio–Telhio Credit Union is reporting that through its participation in the “Welcome Home Program” with the Federal Home Loan Bank of Cincinnati it was able to secure $180,000 in funds for a total of nine members.
The $1.4-billion Telhio noted the Welcome Home Program (WHP) enables prospective homebuyers to apply through select financial institutions to receive up to $20,000 in reserved funds toward a downpayment and/or closing costs.
“Since its inception in 1998, the WHP has disbursed $199 million on behalf of more than 39,000 households,” Telhio said in a statement. “Telhio’s joint involvement in this effort underscores its mission to be the heart the community’s financial wellbeing and a trusted partner for growth and prosperity, ushering in new generations of homeowners that allow local communities in central and southwest Ohio to thrive.”
Market Fluctuations
As the housing market fluctuates, Telhio said the demand for low- and moderate-income properties is steadily rising.
“Saving for initial costs toward a new home is a barrier that can impede many individuals and families from taking their first step into homeownership,” the 68,000-member credit union said. “The $20,000 WHP grant brings this potential back within reach for many people.”
It noted funds were tapped out just a day and a half after becoming available, marking the shortest in the program’s history. Grant funds are based on a first-come, first-served basis until all funds have been reserved.
“We were thrilled to extend our services through the Welcome Home Program and impact the lives of these new homeowners,” Telhio Credit Union President Derrick Bailey said in a statement. “Alleviating some of the costs associated with the homebuying process reinforces our goals of building support for the community we’ve served for the past 90 years.”
The Qualifications
To qualify for a WHP grant, individuals had to:
- Have a total income at or below 80% of the Mortgage Revenue Bond (MRB) limit for the county and state where the property is located.
- Pay a minimum of $500 toward the purchase of the property.
- Complete a homeownership counseling program, if a first-time homebuyer.
- Qualify for the first mortgage based on their own merit. Co-signers and non-occupant co-borrowers are not permitted.
- Not exceed the maximum interest rate of 9.875% for the first mortgage.
