Down Payment Products: What's New in 2019
Changes to Program Guidelines and Forms
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DOWNLOAD CHANGES FOR 2019
Program Guideline Changes
- No new Down Payment Agreement is required for members who participated in 2018
- Home$tart® program only available to first-time homebuyers (households with at least one first-time homebuyer on title)
- Non-resident co-signers, co-borrowers, guarantors not allowed in Down Payment Program transactions
- Member cap $100,000 for each program, subject to availability of funds in general pool
- 2019 Home$tart general pool: $4,000,000 ($2,000,000 added to general pool on 7/1/19 for a total of $6,000,000)
- Maximum grant per household: $7,500
- 2019 NAHI general pool: $500,000
- Maximum grant per household: $15,000
- Home$tart Plus program not available in 2019
See Program Guidelines on the Home$tart and NAHI webpages
Reservation Process Changes - Income Calculation
- Revised Income Calculation Guidelines with new instruction regarding:
- Who to include in Household
- Income Inclusions and Exclusions
- Income documentation requirements
- Expanded instruction on Income Calculation performed by the Income Calculation Workbook
- Revised Income Calculation Workbook:
- Additional instruction conforming to Guidelines and color coding for reference in worksheets
- Household Summary now requires signature of all income-earning adult household members
- Highlighted notes section for member comments on income calculation
- Revised Certificate of Zero Income
- Revised Technical Assistance document to assist with Reservation and Disbursement process
NOTE: Households assisted in the 2019 Round must qualify per the updated Income Calculation Guidelines.
Disbursement Process Changes
- The FHLB Des Moines Certificate of Homebuyer Education form is no longer required. We will require only class certificates to document completion of homebuyer education by first-time homebuyers.
- Deed Restriction templates have been updated with FHLB Des Moines 909 Locust Street address.
- Use the updated form for all households assisted in 2019.
- Recorded Deed Restriction and executed Warranty Deed will be required at disbursement.
- Deed Restriction should be recorded as a separate lien, not recorded together with the Deed of Trust or other liens.
- Signed Closing Disclosure should be uploaded at disbursement, along with the final CD if revisions were made after signing.
- Deferred 2nd mortgages should be reported as Other Forgivable Grants on Disbursement Information Page 2.
- Revised Technical Assistance document to assist with Reservation and Disbursement process.
- Guidance provided for member lookup of Rural/Urban locations included in Technical Assistance.
Contact Information: Down Payment Products