Home$tart - Program Requirements

    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$tart grants, Seattle Bank members must ensure that their homebuyers are qualified for the program, enroll their homebuyers in the program, request disbursement of Home$tart funds for their enrolled homebuyers, and ensure compliance with the terms of the Home$tart Program.

    In addition, members must provide the homebuyers they enroll with financial or other incentives, approved by the Seattle Bank, such as reduced loan fees, free credit reports, or lower loan rates. Incentives must be offered exclusively to Home$tart customers. General services offered to all customers will not be considered eligible Home$tart incentives.

    Qualifying the Homebuyer:

    • Ensure that the homebuyer’s household income is at or below 80 percent of HUD-defined area median income, adjusted for family size. Please visit the Housing and Urban Development (HUD) website for income guidelines.
    • Complete the Seattle Bank’s Home$tart Program Annual Income Calculation Worksheet (xls) to verify income for every member of the household over the age of 18. Please refer to our Income Calculation FAQ for advice regarding the fastest and most efficient way to calculate income and enroll homebuyers.
    • Ensure that homebuyers who are using co-signers to qualify for a mortgage are not enrolled.
    • Ensure that the homebuyer successfully completes a Seattle Bank-approved homebuyer education course prior to requesting disbursement.

    Enrolling the Homebuyer in the Home$tart Program:

    • Complete and submit a Home$tart Enrollment and Certification Form (pdf) within one year of the date of qualification (i.e., the date a household is determined to be eligible to participate in Home$tart). The Seattle Bank will critically analyze homebuyers or adult members of the household who are students to ensure that they do not have a reasonable expectation or knowledge that upon graduation they will have income substantially above the Home$tart income limit.

    Request Home$tart Disbursements for Enrolled Homebuyers:

    • Complete the Home$tart Disbursement Request and Certification Form (pdf) and provide a household account statement to demonstrate the account balance requirement. The account balance must comprise the homebuyer’s own earnings. Gift funds will not be considered part of the household account balance. The Seattle Bank may deny disbursement of Home$tart funds to an enrolled homebuyer whose account statement shows that he/she may contribute 20 percent or more towards the purchase of the home.
    • Ensure that the homebuyer’s mortgage is affordable and the rate, interest, points, fees, and other charges will not exceed a reasonable market rate for a loan of similar maturity, term, and risk. The Seattle Bank may deny disbursement of Home$tart funds to an enrolled homebuyer who is estimated to pay 35 percent or more of his/her monthly gross income towards principal and interest payments.

    Ensure Homebuyer Compliance:

    • Provide a final, signed HUD-1 settlement statement to the Seattle Bank within 30 days of disbursement, ensuring that the homebuyer does not receive more than $250 cash back at closing.
    • Provide a recorded Seattle Bank Deed of Trust and Retention Agreement to the Seattle Bank within 90 days of disbursement (Exception: Homes purchased in Multnomah County, Oregon, or located in the state of Hawaii are permitted up to 180 days to provide a recorded Seattle Bank Deed of Trust and Retention Agreement).
    • Certify homebuyer status on a semi-annual basis.

    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.

    Homebuyer Responsibilities
    • Qualify as a first-time homebuyer. Home$tart homebuyers may not have owned a home (including a mobile home titled as real property) within the three years prior to purchasing a home with Home$tart assistance. Exceptions may be made for displaced homemakers or single parents who have previously owned a home with a spouse or domestic partner.
    • Demonstrate that household income does not exceed 80 percent of area median income, adjusted for family size. This requires that the homebuyer 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.
    • Demonstrate an account balance made up of the homebuyer’s and/or co-buyer’s earnings. Gift funds will not be considered toward the account balance requirement.
    • Complete a homebuyer education course that meets Seattle Bank requirements.
    • Purchase a home within one year of being enrolled in the program.
    • Agree to place a recorded, five-year deed restriction on the home to be purchased by signing and recording a Seattle Bank Deed of Trust and Retention Agreement. 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.

    For detailed information regarding program requirements, please refer to our Home$tart and Home$tart Plus Member Policies and Procedures (pdf), or contact Community Programs Analyst Craig Horton (206.340.2436).