FHC Information for HLB Member Community Lenders

A stockholding HLB member community lender may participate in the First Home Club^sm (FHC) to enroll first-time homebuyers by registering for approval at anytime. Once the member is an approved FHC member participant, the member may enroll pre-qualified first-time homebuyers in the FHC on an ongoing basis. The member submits the names of the enrolled households to the HLB during designated Enrollment Periods, as announced by the HLB.

To participate in the FHC, members must satisfactorily complete the First Home Club^sm Lender's Application and submit the required attachments. Further details on the program may be explained by reviewing the First Home Club's Program Guidelines.

To enroll potential homebuyers in the FHC, the member must approve the household based on the following qualifications:

• Meet the definition of first-time homebuyer
• Gross household income is 80% or less of the area median income as defined in the Program Guidelines
• Determine if the household would qualify to obtain permanent financing from the approved member

In addition, the enrolled households must participate in the program for a minimum of 10 months and up to a maximum of 24 months. The household must also meet the following requirements:

• Open a savings account with an approved member and determine an affordable schedule of savings
• Complete an approved homebuyer counseling program
• Execute the FHC Enrollment Terms & Conditions Agreement (FHC-104)
• At closing, execute a subordinate mortgage for subsidy funds for a 5-year term

Advantages and Benefits of the FHC:

• Creates homeownership opportunities in members' communities
• Provides residential lending opportunities
• Increases banking relationships
• Increases deposits
• Fosters relationships with non-profit housing counseling providers
• Enhances public relations
• Enhances CRA credit

For further assistance call us at (212) 441-6850. You may also e-mail the First Home Club department at fhc@fhlbny.com.