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Home$tart plays a central role in making homeownership a reality for low- and moderate-income families in our members’ communities. Seattle Bank members and prospective homebuyers both have a role in the process.
Member Responsibilities
As sponsors of homebuyers applying for Home$tart grants, Seattle Bank members are responsible for:
- Ensuring that the homebuyer’s household income is at or below 80 percent of HUD-defined area median income, adjusted for family size. Visit the
Housing and Urban Development (HUD) Web site for income guidelines.
- Completing the 2008 Home$tart Enrollment and Certification Form.
- Completing the Seattle Bank’s 2008 Home$tart Program
Annual Income Calculation Worksheet to verify household income for every member of the household over the age of 18. Once a homebuyer is determined to be eligible to participate in Home$tart, the member must submit an enrollment and certification form within one year of the date of qualification.
- Ensuring homebuyers successfully complete Seattle Bank-approved
homebuyer education.
- Completing the 2008 Home$tart Disbursement Request and Certification Form, including providing proof of the homebuyer’s matching funds. Please note that matching funds must be the homebuyer’s own earnings. Gift funds will not be considered matching funds.
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.
- Ensuring that homebuyers do not receive more than $250 cash back at closing.
- Certifying homebuyer status on a semi-annual basis.
- Providing financial or other incentives, approved by the Seattle Bank, to homebuyers, such as reduced loan fees, credit counseling, or lower loan rates.
- Providing a HUD-1 settlement statement to the Seattle Bank within 30 days of closing.
- Providing a copy of a recorded Deed of Trust and Retention Agreement to the Seattle Bank within 90 days of closing (except for the state of Hawaii and Multnomah County in Oregon State, which are allowed 180 days.)
- Ensuring that students are not enrolled in the program if they have a reasonable expectation of being above 80 percent of area median income after graduation.
Homebuyer Responsibilities
- Provide two consecutive pay stubs or other approved income documentation for every member of the household over the age of 18 who will reside in the home to be purchased, to demonstrate that household income does not exceed 80 percent of area median income, adjusted for family size.
- Demonstrate matching funds of the homebuyer’s earnings. Gift funds will not be considered matching funds.
- Complete a
homebuyer education class that meets Seattle Bank requirements.
- Purchase a home within one year of being enrolled.
- Be a first-time homebuyer. The Seattle Bank’s definition of a first-time homebuyer is as follows: The homebuyer may not have owned a home (including a mobile home titled as real property) within the three years prior to purchasing a home with Home$tart assistance. Exceptions may be made for displaced homemakers or single parents who have previously owned a home with a spouse or domestic partner.
- Agree to place a recorded, five-year deed of trust on the house purchased. If the home is sold within five years of purchase, a pro-rata share of the Home$tart grant must be repaid by the homebuyer.
Please note: Home$tart allows participating member financial institutions to receive up to $200,000 annually. This is not a guarantee of funds, but rather the maximum amount one member can receive if there are sufficient funds available.
For detailed information regarding program requirements, please refer to our
Home$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.
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