The Federal Home Loan Bank of Cincinnati and Fahe are offering a new program in Kentucky and Tennessee for first-time homeowners. The bank has allocated $3 million in grants to each state for the Rise Up Program.
Damon Allen is Senior Vice President and Chief Marketing and Community Investment officer of the bank. He said all 11 Federal Loan Banks across the country are required by congress to give ten percent of their earnings for community projects. He said the Federal Home Loan Bank of Cincinnati chooses to give 15 percent to programs like Rise Up.
“The goal of Rise Up is to increase home ownership amongst first generation home buyers. And we do that by providing a $25,000 grant that could be used for down payment assistance, closing cost, etc. So, it helps lower the barrier of entry,” said Allen.
The program has an income limit of 120 percent of an applicant’s county HUD-defined Multifamily Tax Subsidy Project Income Limit.
Officials said last year the bank tested the program in Columbus, Ohio, dispersing $5.6 million in down payment assistance, helping 224 households become first-time homeowners.
Allen said there are limits to what the money can be used for.
“We don’t allow any of our subsidies to be used on mobile homes. However, we do allow it to be used on manufactured module or factory-built housing,” Allen said. “However, if you are going to do that it has to be permanently attached to a fixed foundation and it has to be taxed and tilted as real estate.”
More information on the grant, applications, and other programs offered by the bank are all variable at fhlbcin.com.