Homebuyers

If you are a household impacted by a federally or state declared disaster area in Kentucky, Ohio and Tennessee and wish to apply for Disaster Reconstruction Program (DRP) funds to purchase or construct a new home, please follow the steps below:

  • File a claim with your homeowner’s insurance company;
  • Contact an FHLB member. You may locate a member by searching the Member Directory.
  • Provide the following information to your FHLB member within 48 months of the date of the disaster declaration:
    • Evidence of your insurance claim and any insurance payments received;
    • Evidence you resided in a census tract, Metropolitan Statistical Area (MSA), or County that has been declared a federal or state disaster (i.e. bank statement, pay stub, or utility bill showing the address);
    • Evidence your primary residence sustained significant damage or was destroyed;
    • Proof of income eligibility; and,
    • A copy of the fully executed purchase contract, construction contract, or written estimate of cost to build.

At this point, the member financial institution will process your mortgage application and apply to the FHLB for DRP funds on your behalf. There does not have to be a mortgage loan but if a mortgage is needed to fill the funding gap, the loan must be from the member, Small Business Administration, Habitat for Humanity, or State Housing Finance Agency. The FHLB will review the request and notify the member of our decision within two weeks.

Members

If you are a FHLB member with an applicant, impacted by a federally or state declared disaster area in Kentucky, Ohio and Tennessee, who wishes to apply for DRP funds to purchase or construct a new home, please follow the steps below:

  • Originate the homebuyer’s first mortgage, if applicable. (Note: the loan may be originated by the member, Small Business Administration, Habitat for Humanity, or State Housing Finance Agency);
  • Determine the household’s income and complete the Certification of Household Income Eligibility form;
  • Obtain a copy of the fully executed purchase contract, construction contract, or estimate of  cost to build;
  • Submit the Reservation Request and supporting documentation within 48 months of the date of the disaster declaration via the Disaster Reconstruction Program link through the FHLB’s Members Only portal;
  • Close the transaction and provide the grant funds at closing;
  • Submit the Funding Request and supporting documentation via the Disaster Reconstruction Program link through the FHLB’s Members Only portal.

Sponsors

Sponsor participation on an acquisition/new construction project is optional. An applicant may apply directly to an FHLB member.

If you are a sponsor with an applicant, impacted by a federally or state declared disaster area in Kentucky, Ohio and Tennessee, who wishes to apply for DRP funds to purchase or construct a new home, please follow the steps below:

  • Collect verification the household resided in a census tract, Metropolitan Statistical Area (MSA), or County that has been declared a federal or state disaster;
  • Collect insurance information from the household on insurance claims filed, as well as the results of those claims or collect a written statement from the applicant if they did not have homeowner or rental insurance;
  • Collect household income information; and,
  • Refer the household to an FHLB member within 48 months of the date of the disaster declaration. You may locate a member by searching the Member Directory.

 

Note:  *An applicant/homeowner cannot be reimbursed for expenses already incurred and/or paid.  If the member gives funds directly to the applicant/homeowner, they will be required to pay it back to the FHLB.