New Construction (Grant 18A08) $396,000 (40 units at $9,900 per unit).
In order to start the qualification process, please refer to the FHLB New Construction Checklist.
Prequalification: Upon completion of the home please submit those items detailed and in the format requested in the pre-qualification section of the Checklist. Prequalification items include detailed construction costs, income verification and the appraisal. Once pre-qualified, we will advise that you can proceed with closing.
Post-closing: After the homeowner has closed on their mortgage, please submit the remaining items listed in the Checklist including copies of all closing documents, a copy of the recorded Deed Restriction, the Closing Disclosure, and the $990.00 processing fee.
Disbursement: Upon receipt of all necessary documentation, the project will be submitted to the FHLB for their review and payment. The disbursal process can take up to two months, depending on the number of files submitted and questions on file documentation by FHLB.
1. All Greater Minnesota affiliates are eligible
2. New construction only (no rehab)
3. Eligible homeowner income: Earns up to 80% Area Median Income (see HUD Income Limits by County)
4. Repayment: Each $9,900 grant is secured with a Deed Restriction on the homeowner’s property that is forgiven monthly over five years
5. Total mortgages plus the deed restriction cannot exceed appraised value
6. Projects must be pre-qualified prior to homeowner closing
7. Processing Fee = $990.00
8. The Federal Home Loan Bank of Des Moines requires that 20% be built for disabled or elderly households.
FHLB New Construction Application Materials