HOME$TART - GRANT DISBURSEMENTS

The Seattle Bank disburses grants to nearly 70 homebuyers each month. The following suggestions may help you ensure a more efficient and timely disbursement process.

When completing the 2008 Home$tart Disbursement Request and Certification form, Seattle Bank Members must ensure that:

• Before submitting a disbursement request to the Seattle Bank, the member has received an email confirming that the enrollment has been approved. Pending enrollments may be tracked online and will show “Pending income verification” in the comment field.
• Every field has a written response and every page has been submitted.
• An individual authorized by the Transaction Authorization for Funding - Community Investments Programs form has signed page four of the request.
• A homebuyer education certificate of completion and verification of matching funds has been included with the disbursement request.
• The account statement or verification of deposit shows a sufficient available current balance and is dated no more than 45 days prior to “the date requested for disbursement.”
• The account statement clearly shows the homebuyer name, account number, institution name, date and balance of funds as of that date.
• Gift funds have not been included toward the match requirement.
• The Seattle Bank may deny disbursement of H$P funds for enrolled homebuyers whose matching funds account statement shows that the homebuyer may contribute 20 percent or more toward the purchase price of the home.

Please Note: The “Date requested for disbursement” is the date that the Seattle Bank will review the request and, if all documentation is complete, transfer funds to the member’s DDA. The Seattle Bank recommends entering a date five business days prior to the “mortgage closing date.”

Post Disbursement Requirements:

HUD-1 settlement statement:

• A HUD-1 settlement statement must be submitted to the Seattle Bank within 30 days of disbursement.
• The HUD-1 must be stamped as FINAL.
• The HUD-1 must clearly identify the Home$tart grant (e.g., “Federal Home Loan Bank of Seattle grant” or “Home$tart Program grant”).
• Cash back to the homebuyer cannot exceed $250, even if the funds belong to the homebuyer (i.e., earnest money).

• A recorded deed of trust must be submitted to the Seattle Bank within 90 days of disbursement (180 days for Multnomah County, Oregon and the state of Hawaii).
• Deed of Trust and Retention Agreements must be submitted on the most current form found on the Seattle Bank Website.
• The Home$tart Deed of Trust and Retention Agreement must be recorded as a separate lien.

Please Note: Final approval of the disbursement of Home$tart funds is subject to the sole discretion of the Seattle Bank and subject to all applicable laws, rules, regulations, and policies of the Seattle Bank, as all may be amended from time to time. Participating members should advise homebuyers that the homebuyer’s receipt of Home$tart funds is not guaranteed and that there is a risk that disbursement of those funds will not be approved. The Seattle Bank is not liable for any losses or damages resulting from a failure to disburse Home$tart funds to a member or a homebuyer.

For detailed information regarding program requirements, please refer to our Home$tart and Home$tart Plus 2008 Member Policies and Procedures (pdf), the AHP Implementation Plan (pdf), or contact Lindsey Bernacchi, community programs analyst, at 206.340.8710.