Callaway Bank offers home ownership grants
Thursday, August 22, 2013
Local rural home buyers may have a second chance at obtaining a grant toward covering down payments and closing costs on new homes.
The Callaway Bank has received $15,000 in grant money from the Federal Home Loan Bank of Des Moines to aid first-time home buyers. This is the second year the bank has received the grant.
An applicant can be awarded up to $2,500, with up to $1,000 extra supplemented by the bank. The bank will give up to six grants.
To receive grant assistance, applicants must be first-time buyers and meet several requirements. Because the grant is intended to assist middle- to lower-income families, an income limit is in place. For a one- to two-person household, income must not exceed $47,760, and for a household of three or more the income must not exceed $54, 920.
In addition to the income limit, the house to be purchased must be located in a rural area and approved by the U.S. Department of Agriculture.
Currently, most properties located in Callaway and Boone counties will qualify, with the exceptions of Columbia and Jefferson City.
But Fulton may no longer be considered a rural area by the Department of Agriculture as of Oct. 1, according to Rick Gohring, market president for The Callaway Bank. As long as the home-loan process has begun and the application for the grant has been approved, however, buyers will be in the clear.
“We’ll work very hard to get in under the deadline,” he said. “The loans will need to be in progress by then, and [applicants] should be fine.”
In addition to these requirements, recipients must take a financial literacy course, which will be available in Columbia or online, and agree to stay in the home for 5 years or they may face a recapture of some of the grant money.
Gohring encouraged potential home-buyers to contact Chris Boettcher, a Columbia-area real estate lender for The Callaway Bank, or Brian Hughes, a Fulton-area lender at the Fulton branch of the bank for information and to get the application process started.
“This is an excellent opportunity — take advantage of this grant money,” Gohring said.
For more information, call the Callaway Bank at 573-642-3322.
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