Home$tart Reservation and Disbursement Approval Assistance
posted on Monday, July 1, 2019 in Affordable Housing
Note: This post was last updated on 6/29/2020
During the initial round of reservation requests for Home$tart funds earlier this year, the Community Investment team identified the top three challenges to successful and speedy processing. As you go through the process of reserving funds and requesting the disbursement after closing your loans, take a closer look at these common errors:
At Reservation Submission
1. Homebuyers who are separated/divorcing must be divorced or legally separated for 12 months at the enrollment date (with supporting documentation) in order to exclude the partner who is leaving the household. Without this qualification, that individual must be included in the Household Summary and the income calculations.
2. Complete information regarding child support, alimony or other monetary disbursements for each workbook. Additional supporting documentation may be required as the file is reviewed.
At Disbursement Submission
3. All first-time homebuyers named on title must complete their education course prior to closing. Course certificates are now required at reservation submission as of April 1, 2020. Course certificates for all first-time homebuyers named/added on title must complete their education course prior to closing and submit at disbursement for final verification.
Home$tart Program Reminders
$100,000 Member Cap is not a Guarantee of Funds
No member may reserve more than $100,000 in 2020 and not all interested members will reach their cap before the funds are fully reserved.
Pre-qualification of homebuyers does not guarantee funding
Home$tart funds are not guaranteed unless they have been reserved and approved. A purchase agreement is required to be able to submit a reservation request.
Using Home$tart funds with the MPF® Program
Participating Financial Institutions (PFIs) with eligible households planning to utilize Home$tart funds should not lock in MPF loans unless their reservation of Home$tart funds have been approved.
Our team of Down Payment Analysts can help you with any questions.
800.544.3452 ext. 2400
“MPF” is a registered trademark of the Federal Home Loan Bank of Chicago.