The Equity Builder
Program (EBP) provides members with grants to assist home
buyers earning no more than 80 percent of the area median
Eligible EBP Uses of EBP Grants
Members can use EBP grants to:
- Provide down-payment and closing-cost assistance.
- Pay rehabilitation costs associated with acquisition.
- Pay the approved home-buyer-counseling organization
for the cost of home-buyer counseling, up to a maximum of $500 per household.
In addition, any of the above can be used in conjunction
with home buyer's savings through an Individual
Development Account (IDA) or matched-savings program.
EBP grants may not be used to create
a principal, interest, taxes, and insurance (PITI)
reserve; to pay the costs of prepaid life insurance
premiums; to reimburse home buyers for earnest deposits; to
return cash back to a buyer at the closing in excess
or in conjunction with an Affordable
Housing Program subsidy awarded to the same borrower
for the same transaction.
To receive EBP funding, members must agree to:
- Work with an experienced home-buyer counseling agency
to offer buyers homeownership education/counseling.
- Originate the buyers' first mortgages using conventional fixed-rate or adjustable-rate mortgages. EBP-eligible adjustable-rate mortgages must have an initial interest-rate period of five years or greater. Maximum interest rate caps are 2 percent annually and 6 percent lifetime.
- Provide buyers with concessions or other special
incentives in connection with the mortgage financing,
including waived or reduced fees, a reduced interest
rate (a rate below that for a standard, conventional
market-rate mortgage), relaxed underwriting standards
or downpayment assistance, or other cash contributions
made by the member at closing.
- Certify, prior to disbursement, to a household's
eligibility for the program and that the funds will
be used for eligible purposes.
Please see the EBP
Application Manual and the EBP Enrollment/Disbursement Manual for more information.