FHLB DM ASSISTANCE PROGRAM

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					                                                            FHLB-DM ASSISTANCE PROGRAM
                                                               10A08 GRANT APPLICATION
                                                                                 CHECKLIST OF REQUIREMENTS
                                                                    For RURAL and URBAN areas in Greater Minnesota
                                                                                    **NEW CONSTRUCTION ONLY**

AFFILIATE NAME
HOMEOWNER(S) NAME(S)
ADDRESS OF HOME
CLOSING DATE


  ABOUT THE FHLB GRANT: The Federal Home Loan Bank of Des Moines (FHLB-DM) offers an “Affordable Housing
  Program” designed to assist in the development of affordable housing for low-income households. HFH-MN applies for
  this funding and administers this program on behalf of all affiliates in the state. There is $495,000 available for 55 homes
  under the 10A08 grant. Funding is available on a first-come, first-served basis.
  All grant application materials are available online at: http://www.hfhmn.org/affiliatesPages/fhlbgrants.html


 PRE-QUALIFICATION MATERIALS
Please submit Exhibits A, B, and C to HFH-MN approximately two (2) weeks prior to your closing with the
homeowner to start the “pre-qualification” process. If you have any concerns or questions regarding eligibility, feel
free to contact Jenni Ebert to review the pre-qualification guidelines.

       EXHIBIT A: CONSTRUCTION COST WORKSHEET AND ITEMIZED SPREADSHEET
       Please use the Exhibit A Construction Cost Worksheet to categorize all costs of the home (cash and inkind).
       The Guide to Cost Categories will assist you in completion this. Also provide a supporting spreadsheet
       preferably from the affiliate’s accounting system with a detailed accounting for all cash expenditures, plus
       in-kind materials, in-kind professional labor and land costs. The spreadsheet should include the names of all
       professional contractors that provided labor and materials for the home, paid or in-kind. All professional
       contractors (plumbing, heating, electric, etc.) must be licensed by the State of Minnesota.
        Construction Cost Worksheet
        Itemized cost spreadsheet (including in-kind material and in-kind professional labor)
        If land was donated, please provide a copy of the warranty deed documenting the donation

       EXHIBIT B: INCOME VERIFICATION The verification of family income is a very important element of
       qualifying for funding. Homeowner income cannot exceed the Program Income Guidelines. The affiliate
       must independently verify the family’s income. In order to assure compliance, the Calculation of Income
       Worksheet and all sources of income verified in writing, must be submitted. ALL SOURCES OF INCOME,
       EARNED AND UNEARNED, MUST BE VERIFIED FOR ALL HOUSEHOLD MEMBERS AGE 18+.
       The Calculation of Income Worksheet Instructions will assist you in completion of the form. Please submit
       the following:

        DRAFT of Calculation of Income Worksheet (to be signed by partner family and affiliate at closing)
        Homeowner and Property Data Worksheet

                                                              -1-
     (Income Verification Continued)

      Habitat for Humanity homebuyer application
      Federal Tax return and W2s for year the family was selected by your affiliate (first 4 pages)
      ONE of the following must accompany the tax return:
              o Written employer verification of income letter (a sample is available) **PREFERRED**
              o Two months of pay stubs with sufficient data to determine Year-To-Date income
        Child support verification from 3rd party (i.e., the County)
        SSI / disability payment 3rd party verification
        If applicable, to document self-employment income, please provide two years of Tax Returns and
         corresponding Schedule C’s.
        Any other applicable cash income source must be verified.


     EXHIBIT C: APPRAISAL
     A copy of the market value property appraisal is required.


MATERIALS TO SUBMIT AFTER THE CLOSING
     EXHIBIT D: FIRST AND SECOND MORTGAGES AND NOTES
     Please include a copy of the signed and recorded first, second, and third (if applicable) mortgages and
     mortgage notes. Do not send original notes.

****PLEASE NOTE, the total mortgages and deed restriction can not exceed the appraised market value.****

     EXHIBIT E: RECORDED DEED RESTRICTION
     Please include a COPY of the recorded Deed Restriction (please keep originals for your files). Be sure you
     are using the most current version, which displays 10A08 Deed Restriction in the footer.

     EXHIBIT F: PURCHASE AGREEMENT
     Homeowner and affiliate have signed a Purchase Agreement. A standard form Purchase Agreement is
     available for your use.

     EXHIBIT G: HUD-1 CLOSING STATEMENT
     Use of a HUD-1 Closing Statement is required. Homeowner and affiliate must sign a HUD-1detailing
     sources and uses of funds to acquire the home. Please include the amount of the ALL mortgages and the
     $9,000 FHLB Deed Restriction.

     EXHIBIT H: PRIVACY NOTICE
     Homeowner has signed the privacy notice. Please keep originals for your records.

     EXHIBIT I: $675 PROCESSING FEE
     A check in the amount equal to 7.5% of the total FHLB grant ($675) made payable to Habitat for Humanity
     of Minnesota is attached to this Application as EXHIBIT I. The fee is designed to help cover the costs of
     applying for and administering funding of this program.

           Questions? Contact Jenni Ebert at 612-331-4439 ext 4 or Jenni@hfhmn.org.
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