First-Time Homebuyer Grants Available for Service Members

July 29, 2011 (Chris Moore)

The Pentagon Federal Credit Union Foundation is providing grants of up to $5000 for eligible Service Members who are first-time homebuyers through the Dream Makers Program.

Eligibility requirements are simple and require the following:

– You’re Military (Active Duty, Reserve, National Guard or Veteran), a Department of Defense employee or a Department of Homeland Security employee.

– You’re a first-time home buyer, or you have not owned a home for the last three years, or you have lost your home through divorce or disaster.

– The gross household income, including allowances, that you use to qualify for your mortgage loan is:

     •A maximum of $55,000 per year, or
     •A maximum of 80% of your community’s median income based on your family size

To determine your community’s median income based on family size, click here.

If you meet the requirements, there are four steps to take in order to get a grant.

1. Decide the amount of money you will contribute to your mortgage financing. There is a $500 minimum requirement that you must contribute but Dream Makers will match that three to one up to a maximum of $5000.

You must put a minimum of 3 percent down to qualify for the grant, that includes your contribution and the amount of your grant.

2. Fill out the application. You can fill out the application online here or you can download the form here. You can submit your application before you select a home or a mortgage company.

3. A representative from the Foundation will contact you to help you coordinate the grant paperwork with your lender.

4. You must attend a home-buying education seminar in your area. To get a list and time of upcoming seminars and locations, click here.

The following restrictions apply:

– You must own the home for five years from the time of purchase. If you sell before the five years are up, the grant must be repaid on a sliding scale.

– If you sell your home because of a permanent change of station (PCS) or transfer by your government job before the five years are up, you do not have to repay the grant. If you are PCS’d or transferred and keep the home, you may rent it while you serve in your new duty station.

– Your mortgage must be a 30-year, fixed-rate loan, maximum of 97% financed, i.e. you made a down payment of 3%.

– The property must bye a 1-4 family unit dwelling including townhomes and condominiums.

Repayment schedule if you sell your home before five years for any reason other than the ones listed above:

100% before year one is up
80% before year two is up
60% before year three is up
40% before year four is up
20% before year five is up
No repayment after 5th anniversary

And finally…the Dream Makers Contribution chart:

Your Contribution

Foundation Grant

Total for Closing & Down Payment

$500

$1,500

$2,000

$1,000

$3,000

$4,000

$1,500

$4,500

$6,000

$1,667

$5,000

$6,667

$2,000

$5,000

$7,000

$3,000

$5,000

$8,000

$5,000

$5,000

$10,000

$10,000

$5,000

$15,000

Tags: Pentagon Federal Credit Union Foundation, Army, Air Force, Navy, Marines, Active Duty, Reserves, National Guard, Veteran, Homeland Security

Source:
Pentagon Federal Credit Union Foundation