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 member banks.
The potential homebuyer must meet the following preliminary qualifications in order to participate in the FHC:
- Meet the Definition of First Time Homebuyer
- Meet the Income Guidelines (Families with incomes at or below 80% of the area median income)
- Complete an approved Homebuyer Counseling Program
- Agree to make systematic deposits into a dedicated savings account with the member bank for a period of 10-24 months
- Agree to sign, at the time of closing, a 5-year subordinate mortgage with the member bank in the amount of the subsidy funds
By offering the FHC in your institution, you can increase your deposits and mortgage originations and enhance your public relations and your CRA credit.