First Home Clubsm ("FHC")
The FHC was launched by the HLB in 1995 to offer an incentive for households with incomes at or below 80% of area median income to save towards the purchase of a new home. The FHC provides down payment and closing cost assistance by granting four dollars in matching funds for each dollar saved in a dedicated account (up to $7,500 in matching funds) to an eligible first-time homebuyer purchasing a home through one of our approved members.
The potential homebuyer must meet the following preliminary qualifications in order to participate in the FHC:
- Meet the Definition of First Time Homebuyer
- Reside and purchase their home within HLB's district area (New Jersey, New York, Puerto Rico and the U.S. Virgin Islands)
- Gross household income is 80% or less of the area median income as defined in the Program Guidelines
- Open a dedicated savings account with an approved member and agree to save systematically on a monthly basis for a period of 10-24 months
- Complete an approved homebuyer counseling program
- Execute the FHC Enrollment Terms & Conditions Agreement (FHC-104)
- Obtain mortgage financing from the member
- At closing, execute a subordinate mortgage for subsidy funds for a 5-year term
By offering the FHC in your institution, you can increase your deposits and mortgage originations and enhance your public relations and your CRA credit.