RURAL FIRST-TIME HOMEBUYER PROGRAM (RFHP)

The Rural First-time Homebuyer Program (RFHP) is a down payment assistance program designed to help first-time homebuyers in rural areas purchase a home. As a Federal Home Loan Bank stockholder, Security National Bank is eligible to access RFHP funding to assist first-time homebuyers in rural areas we serve. In 2007, the FHLBank RFHP is available in two equal offerings. 

Eligible homebuyer requirements:

• No cash back at closing;
• Pay at least 15 percent of their monthly income toward their monthly housing costs;
• Have an income that is 80 percent or less of the area median, based on income of all household members;
• Purchase a home located in a rural area;
• Complete a homebuyer education/counseling program prior to receiving the funds;
• Provide a minimal down payment and
• Have an income not based on a temporary condition (such as a full-time student).

The maximum RFHP subsidy per household in 2007 is $4,000, and the maximum amount Security National Bank can request is $50,000 annually. However, due to the first-come, first-served structure of the program, Security National Bank is not guaranteed access to the maximum allowable RFHP subsidy of $50,000. Before requesting funds, the prospective first-time homebuyer must provide documentation that the buyer is RFHP-qualified and has been qualified or approved for financing to purchase a home.