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Understanding the key differences between two homeownership assistance programs.

First State Bank Nebraska’s partnership with the FHLBank plays a crucial role in promoting affordable homeownership in our communities with the Homeownership Set-Aside Program (HSP) and the Homeownership Possibilities Expanded Program (HOPE). These programs aim to provide assistance to homebuyers and address the challenges of attaining homeownership.

Homeownership Set-Aside Program

The Homeownership Set-Aside Program (HSP) is designed to provide financial assistance and support low- and moderate-income individuals purchase their first home. The program allocates a portion of the FHLBank’s annual funds specifically for this purpose. These funds are distributed through member financial institutions, like First State, allowing them to offer grants or subsidized loans to eligible homebuyers.

Key features of the HSP:

• Applications open March 4, 2024
• Income must be at or below 80% of the Area Median Income (AMI)
• Maximum subsidy per household: up to $15,000
• A Down payment as low as 3%, plus closing costs is required. HSP grant funds can be used to help with these costs.
• HSP is provided to households as a forgivable grant with a five-year retention period

Homeownership Possibilities Expanded Program

On the other hand, the Homeownership Possibilities Expanded Program (HOPE) focuses on expanding homeownership opportunities for individuals and families that do not traditionally receive support but need assistance with down payment, closing costs or eligible repairs. This program is not limited to first-time homebuyers.

Key features of HOPE:

• Applications open March 4, 2024
• Income must be at or below 150% of the Area Median Income (AMI)
• NOT limited to first-time homebuyers
• Maximum subsidy per household: $12,500
• A HOPE subsidy is provided to household as a forgivable grant with a five-year retention period

Both the Homeownership Set-Aside Program and the Homeownership Possibilities Expanded Program reflect First State’s commitment to fostering affordable and inclusive homeownership. While the former focuses on assistance for first-time homebuyers, the latter extends the reach to those who may not be first-time homebuyers but still require assistance. Understanding the nuances of these programs is essential for aspiring homeowners as it allows for informed decision-making based on individual circumstances and needs.

If you are in the market for a new home and would like to learn more or find out if you qualify for one of these programs, reach out to a First State mortgage expert or apply online and we’ll walk you through the process.

Please note: the HOPE subsidy cannot be subordinated in the event of refinancing or obtaining additional liens. Subject to credit approval. Subject to terms and conditions of the FHL Bank’s Homeownership Possibilities Expanded Program and the Homeownership Set-Aside Program, including borrower eligibility requirements. Reservations are accepted on a first-come first-served basis, subject to limits through November 29, 2024. If program guidelines are not met, the subsidy may need to be repaid.