Frequently Asked Questions for Housing Counseling Agencies

The Lift Up Homeownership program provides enhanced down-payment and closing-cost assistance to first-time homebuyers earning no more than 120% of the area median income, as defined by the U.S. Department of Housing and Urban Development (HUD). Through Lift Up Homeownership, grants are made to eligible homebuyers who either meet FHLBank Boston’s definitions of first-generation homebuyer or person of color. Lift Up Homeownership is one of three homeownership assistance programs offered by FHLBank Boston.

FHLBank Boston defines a first-time homebuyer according to regulation 42 U.S.C. §12704(14). In addition, at least one adult borrower must complete first-time homebuyer education/counseling from an organization approved by FHLBank Boston. Please refer to FHLBank Boston’s list of approved agencies.

FHLBank Boston defines a first-generation homebuyer as first-time homebuyers who self-certify that (i) the parents and/or legal guardian of at least one borrower does not currently own a home in the United States and has not previously owned a home in the United States, or (ii) at least one borrower has aged out of foster care.

No. The entire household does not have to be first-generation homebuyers. However, at least one adult who is a borrower on the first mortgage loan application must be a first-generation homebuyer as defined by FHLBank Boston.

FHLBank Boston defines a person of color for participation in Lift Up Homeownership as Black, American Indian/Alaska Native, Hispanic, Asian, or Native Hawaiian/Pacific Islander. Homebuyers will be required to self-certify their race or ethnicity by completing a self-certification form provided by FHLBank Boston. Individuals who do not self-certify their ethnicity or race will not be eligible to participate in this program.

No. The entire household does not have to be persons of color. However, at least one adult who is a borrower on the first mortgage loan application must be a person of color as defined in FHLBank Boston’s written plan.

The borrower or co-borrower only needs to self-certify as Black, American Indian, Alaska Native, Hispanic, Asian, or Native Hawaiian/Pacific Islander. However, they can select all that are applicable.

Special Purpose Credit Programs (SPCPs) are allowed under the Equal Credit Opportunity Act (ECOA) and implementing Regulation B of the Consumer Financial Protection Bureau. These laws allow lenders to establish programs that address special social needs and increase access to the credit markets based on a written plan. The written plan must include the class of people the program is designed to benefit, set forth procedures and standards, and establish the period the program will run for or be evaluated. Considering recent guidance from HUD stating that ECOA-compliant SPCPs generally do not violate the Fair Housing Act (FHA), this SPCP will allow FHLBank Boston’s members to legally provide targeted assistance to people of color without violating ECOA, the FHA, or other overlapping antidiscrimination laws.

An eligible homebuyer, as defined in FHLBank Boston’s written plan, can receive up to a $50,000 grant.

No. This contribution must be $1,000 of the homebuyer’s own funds and not a gift or gift of equity. This contribution must be evidenced on the executed purchase and sales agreement or addendum. The homebuyer may receive an additional gift or gift of equity in the transaction; however, these sources of funds will not be considered the homebuyer’s own contribution.

Eligible properties are owner-occupied, primary residences purchased in New England and include one- to four-family homes, townhouses, condominiums, cooperative housing units, and manufactured housing deeded as real estate.

Yes. The Lift Up Homeownership program grant can be used to buy down a homebuyer’s interest rate by purchasing discount points (capped at 2%).

Yes. The Lift Up Homeownership program procedurally operates like the EBP and HOW, including determining income eligibility, enrolling eligible homebuyers, requesting disbursement of grant funds, and monitoring. The Lift Up Homeownership program differs in that it is a SPCP, governed by separate procedures, disclosures, and retention documents. Please refer to the program Procedures and the homeownership assistance programs income calculation guidelines.

No. The income-eligible homebuyer must work with a member financial institution that is approved to offer Lift Up Homeownership. Please contact the Housing & Community Investment Team ​to see which financial institutions are approved to participate in the program.

Homeownership education/counseling agencies should direct a first-time homebuyer to a member financial institution participating in the program. The member financial institution will work with the first-time homebuyer to determine eligibility with the program’s requirements, complete the required documentation, and apply for first mortgage financing. The homebuyer education/counseling agency is not required to determine eligibility with the program’s requirements.

The Lift Up Homeownership grant cannot be layered or combined with FHLBank Boston’s EBP, HOW, or Affordable Housing Program. If a homebuyer meets the Lift Up Homeownership requirements, they can layer the grant with local, state, federal, and other down-payment assistance programs outside of FHLBank Boston.

The Lift Up Homeownership grant is forgivable after five years from the closing date, subject to complying with the program’s affordability provisions. Homebuyers will be required to sign a subordinate mortgage and note securing the affordability provisions. In the event of a sale, transfer, assignment of deed, or refinancing prior to the end of the five-year period, FHLBank Boston will conduct a repayment calculation based on net proceeds and the homebuyer’s capital investment in the property, to determine if funds are due to FHLBank Boston. In the event of a refinancing, FHLBank Boston will permit the Lift Up Homeownership grant to be subordinated at its sole discretion. Please work directly with all grant recipients before contacting FHLBank Boston’s Housing and Community Investment Team.