Federal Home Loan Bank Affordable Housing Program First Time Homebuyer Assistance for Sumner County

Caldwell State Bank and SCKEDD have received a grant agreement from the Federal Home Loan Bank of Topeka to provide an affordable housing program for first time homebuyers in Sumner County.

Rules and Guidelines:

• Maximum number of homebuyers that can be helped is 15.
  
• Maximum amount available per household:  $4.250.00 to be used for down payment assistance/closing costs/rehabilitation.
  
• Down payment required from buyer:  $500.00 minimum.
  
• Homebuyer education:  Buyer must attend a one-day class conducted by Mennonite Housing, or Community Housing Services in Wichita, prior to closing.  Next date for Mennonite Housing's class is November 19, 2005.
  
• Restrictions:  Buyer and spouse cannot have owned a site-built house within the past thirty-six months.
  
• Exceptions to thirty-six month rule: 

  a.   If the person owned a mobile home, that does not count as “owning a house.” 

  b.   If the homebuyer is a single parent with custody of minor children, and owned a home that had to be sold due to a divorce, that does not count as “owning a house.” 

  c.   If the buyer is a “displaced homemaker” who left a home due to a divorce and has obtained employment again, that does not count as “owning a house.”

  
  

• Restrictions on number of bedrooms and/or disabled person living in the family:  8 of the 15 homebuyers have to purchase a home that has at least 3 bedrooms, or there has to be a disabled person living in the household.
  

• Income rules that apply to this program:
  

  12 of the 15 households can’t have annual incomes greater than:

  1-2 persons                                           $28,325         

  3 or more persons                                 $32,574

  2 of the households can’t have annual incomes greater than:

  1-2 persons                                           $33,990         

  3 or more persons                                 $39,088

  1 household can’t have an income greater than:

  1-2 persons                                           $45,530         

  3 or more persons                                 $52,118

Realtors and lenders will be responsible for pre-qualifying the buyers and determining what type of loan the homebuyer can quality for.

SCKEDD will coordinate homebuyer education.  A SCKEDD inspector will inspect the house and will furnish a detailed report to the homebuyer that will include a written opinion about all major systems.  If there is an imminent health and safety problem then a recommendation regarding rehabilitation will be provided, along with a specification that can be used to obtain bids.  SCKEDD will oversee obtaining bids for all rehabilitation work and will inspect all completed rehabilitation before payment can be made to a contractor.

In addition, homebuyers will be required to apply for the Kansas Weatherization Assistance Program.  Grant funds for weatherization work will be used after the homebuyer occupies the house.

Note:  a home can be purchased that has flaws, or deterioration, but the intent of Caldwell State Bank and SCKEDD is to use the FHLBTopeka Affordable Housing Program funds to cure any major health and safety problem.  Typical repairs are:  replace a worn or leaking roof; install new plumbing or replace a failing sewer line; upgrade electrical service by installing a new entrance from the pole along with a new main electrical panel; and install a new heating system.

Caldwell State Bank and SCKEDD may refuse to use FHLBTopeka Affordable Housing Program funds if the dwelling is dilapidated.

Download a Federal Home Loan Bank Affordable Housing for First Time Homebuyers Assistance for Sumner County application here.

For More Information Contact:

Michael West, Program Manager
Email: mike@sckedd.org

316-262-7035
209 E. William, Ste. 300
Wichita, Kansas 67202-4012