posted by admin on Jan 26

Affordable Housing Program – Federal Home Loan Bank Affordable Housing Program – February 15 – April 15, 2010

The Affordable Housing Program (AHP) is a great opportunity for organizations – like Habitat for Humanity…NeighborWorks…affordable housing entities… to receive gap assistance for low to moderate income homebuyers. The program provides direct grants and subsidized loans to assist in meeting the community’s affordable housing needs.

The AHP Funds must be used to benefit households with incomes at or below 80 percent of the median income for the area…and can be used to pay closing costs or down payments…buy down principal amounts or interest rates…refinance an existing loan (provided that the equity proceeds are used for the development of AHP-eligible housing)…assist with rehabilitation or construction costs…homebuyer education and counseling costs also qualify…the funds are intended for gap financing,

Affordable housing is in great demand. Many individuals and families with good credit ratings are not able to accumulate the funds necessary to pay the down payment and closing costs associated with the purchase of a new home.

Rehabilitation of existing homes is also allowed because many homeowners, particularly those who are elderly and living on a fixed income, find themselves unable to afford the repair and maintenance of their home. Through the AHP, grant funds may be obtained to pay all or part of their rehabilitation costs.

The AHP application is only open for entry – February 15 – April 15 of each year.…get ready!!