Eileen Phelps, Sr. vice president and chief services officer of Credit Union of America (CUA), announced this week that CUA has been approved and is ready to offer grants to first-time homebuyers through the Federal Home Loan Bank’s Homeownership Set-aside Program. If ownership of the home is kept for at least five years the homeowner then has no responsibility to pay the funds back to the program. Not all financial institutions are approved for this program. Those approved, like CUA, are limited on how many grants are offered per month.
“This subsidy program is a great way for lower-income, first-time home buyers to increase or even make a down payment,” said Real Estate Lending Manager Ernest J. Warren. “The funds can also be used to cover closing and/or prepaid expenses. Helping with these initial costs can put low-income homeowners on a path to financial success by having a home where their hard-earned income is building equity, rather than going to rent.“