Welcome Home Grant provides homebuyers with some savings

Buying a home is expensive, but area homebuyers will have an opportunity to secure funding that could go a long way in the purchase of their new home, and all it takes is a phone call or visit.

The Federal Home Loan Bank of Cincinnati is offering grants of up to $25,000 for honorably discharged veterans, surviving spouses of military personnel and active-duty military homebuyers and between $10,000-$20,000 for all other homebuyers to assist with down payment and costs for income-eligible homebuyers through the Welcome Home Grant program.

While navigating the task of applying for funding may be intimidating for some, professionals at Killbuck Savings Bank can help prospective buyers to get headed in the right direction, where homebuyers may apply and qualify for a mortgage loan to utilize the grant.

“We at KSB are very excited to be offering the program again this year as we have for the last 20 years,” said Michelle Snow, KSB vice president/retail lending manager. “This program is designed for home purchases either to a first-time homebuyer or a repeat buyer if it will be their primary residence.”

A homebuyer would be eligible for the Welcome Home Grant by meeting several guidelines: the total income for all occupants of the home is at or below 80% of the Mortgage Revenue Bond limit for the county and state where the property is located, a fully executed (signed by the buyer and seller) purchase contract on eligible property is in hand, the homebuyer has at least $500 of their own funds to contribute toward the down payment and/or closing costs, and the first-time homebuyer (typically anyone who has not owned a home in the past three years) completes a satisfactory homebuyer counseling course prior to the loan closing.

In addition, the property must be the homebuyer’s primary residence and must be a single-family, townhome, condominium, duplex, multi-unit (up to four family units) or qualified manufactured home.

Participants will be required to complete homebuyer counseling, if they are first-time homebuyers, with a local program offered through OSU Extension with a cost of $50. The program will go through Kate Shumaker of the OSU Extension.

“I have startup packets if counseling with Kate,” Snow said, adding a borrower also can use Freddie Mac CreditSmart Homebuyer U at creditsmart.freddiemac.com, which is an online class that will supply a homeowner with a certificate of completion, which is required and to be turned in with the funding request.

All of these regulations can be a daunting task to sift through, which is why Snow said calling on professionals to help homebuyers through the process can make things much easier to understand and give them a leg up on how to prepare prior to the time the funds are released.

“People can call in, but we prefer sitting down face to face to lead them through the process so they can fully understand everything involved,” Snow said. “We like the personal touch, and many people in our communities appreciate that.”

KSB has mortgage loan originators at all of its area banks.

Funds will be available for reservation on a first come, first served basis beginning at 8 a.m. on March 1 and will remain available until all funds have been reserved. Homebuyers must apply with a member institution, and according to Snow, they should do so as soon as the grant program begins.

“We suggest those interested jump on this unique opportunity quickly because the funds should go fast,” Snow said. “This program is available to any new homeowner in Ohio, and when it starts March 1, there is such a short window of opportunity because it is a significant amount of money and it always goes quickly, so any interested homeowners should act quickly before all of those funds get gobbled up.”

In order to be eligible to receive the grant, homebuyers in Coshocton, Holmes, Knox, Tuscarawas and Wayne counties must have a limited income of around $72,000 for one or two persons living in the home. For three or more, the income limit is no more than $83,000-$84,000, depending in which county the homebuyer lives.

Killbuck Savings Bank mortgage lenders can be found on the company website at www.killbuckbank.com. Parties wishing to make an inquiry may call a KSB mortgage loan officer at 330-276-4881.