As Keystone State REALTORS© know, first-time homebuyers represent the cornerstone of a community. Building equity in a first home empowers individuals and families to build wealth for future life events – including moving up in the housing market – while contributing to a community’s property values, stability and social life.

In 2006, 43 financial institutions across Pennsylvania are offering another reason for first-time homebuyers to transition from renting to owning.

As member-owners of the Federal Home Loan Bank (FHLBank) of Pittsburgh, these community banks, savings and loans and credit unions are participating in the First Front Door (FFD) program that provides down payment and closing cost assistance for first-time homebuyers with incomes at or below 80 percent of their area’s median income. This year, more than $6 million in First Front Door funding is available – on a first-come, first-served basis – through FHLBank members to serve at least 1,000 homebuyers.

Under First Front Door, an individual is considered a first-time homebuyer if he or she has not owned a home within the past three years, or owned a home only while married but not as a single person within the past three years. Homes that qualify for purchase with FFD assistance include single-family homes, townhomes, duplexes, condominiums and modular units.

Up to $5,000 available per homeowner

Through its participating members, the FHLBank contributes three dollars for every one dollar contributed by the homebuyer, for a maximum of $5,000 per recipient, based on need. Member banks must make measurable concessions to the affordability of the house such as waived or reduced fees or points or below-market rates. Approval of participant paperwork is completed by the FHLBank within seven business days, as is funding disbursement.

The homebuyer must successfully complete homeownership counseling, which addresses topics such as creditworthiness, household budgeting and home maintenance. Buyers must also receive counseling on predatory lending. Further, the homebuyer must live in the new home for at least five years in order to keep the full amount of the grant.

REALTOR® contacts

To bring a first-time homebuyer into First Front Door, or to learn more about the program, contact your local participating financial institution. A complete list of program participants can be found at www.firstfrontdoor.com.

Created by Congress in 1932, the 12-member FHLBank System uses private capital distributed through member financial institutions to assure reliable, low-cost credit for housing and community development. Working with REALTORS©, homebuilders and other community partners, the FHLBanks serve as a catalyst to build thriving neighborhoods.