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Workforce Initiative Subsidy for Homeownership (WISH) Program
Under the WISH Program, the Bank sets aside a portion of its annual Affordable Housing Program contribution to provide matching grants through Bank members for downpayment and closing cost assistance to eligible homebuyers who have participated in a mortgage assistance program. The WISH Program is designed to help working households in high-cost areas purchase homes near their work.
Uses
- Promote homeownership opportunities for very low-, low-, and moderate-income households
- Build and maintain relationships with new customers
- Expand the use of your institution’s financial products
- Help achieve your institution’s community investment goals
Key Advantages
- Provides up to $15,000 for each participating household, matching up to $3 for each $1 contributed by the homebuyer(s)
- Application process allocates funds for homeownership based on program eligibility, not on competitive scoring
Key Features and Guidelines
Funds Available
The Bank expects to set aside up to 10% of its annual AHP contribution each year to fund the WISH Program. The Bank will assist eligible homebuyers in the following Arizona, California, and Nevada counties:
Arizona
Apache
Coconino
Cochise
Gila
Graham
La Paz
Maricopa
Mohave
Navajo
Pima
Pinal
Yavapai
Yuma
California
Alameda
Butte
Calaveras
Contra Costa
El Dorado
Fresno
Humboldt
Imperial
Kern
Los Angeles
Madera
Marin
Mariposa
Merced
Monterey
Napa California
Orange
Placer
Riverside
Sacramento
San Benito
San Bernardino
San Diego
San Francisco
San Joaquin
San Luis Obispo
San Mateo
Santa Barbara
Santa Clara
Santa Cruz
Shasta
Siskiyou
Solano
Sonoma
Stanislaus
Sutter
Tehama
Tulare
Ventura
Yolo
Yuba
Nevada
Clark
Douglas
Washoe
Members may apply for a reservation of WISH funds for up to $400,000 from January 22, 2008, to February 22, 2008. A member may apply for an additional reservation of WISH funds for up to $50,000, subject to funds availability, until December 1, 2008, only if the member (1) applied for and received a reservation earlier in the year and (2) has fully disbursed those funds or has specifically reserved those funds for one or more homebuyers. Additional reservations will be awarded on a first-come, first-served basis.
If the Bank receives requests for WISH funds that exceed the amount set aside for the program for that year, the Bank may allocate available funds to eligible applicants in accordance with the Bank’s AHP Implementation Plan.
Applications
The Bank will accept applications from members from January 22, 2008, to February 22, 2008.
In general, applications must include:
-
Completed 2008 WISH Application for Funds Reservation
-
2008 WISH Program Application for Funds Reservation Attachment A (if applicable)
-
Executed Affordable Housing Program Direct Subsidy Agreement—Homeownership Set-Aside Program
Mortgage Assistance Program
The WISH Program makes AHP funds available through participating Bank members to qualified homebuyers who have participated in a mortgage assistance program. Mortgage assistance programs may have one or more of the following features:
- A grant or a deferred second mortgage to assist with downpayment and closing costs. Deferred second mortgages may carry interest, but the interest must be below market compared to a second mortgage of similar amount and term.
- Assistance in the form of a yearly deduction of principal and interest to be repaid at the end of the mortgage assistance period or at the sale of the property.
- A shared equity appreciation component.
- A sweat equity component that reduces the principal amount of the mortgage.
Homebuyer Eligibility
To be eligible for WISH funds, the homebuyer must meet the following eligibility criteria:
-
Homebuyer has enrolled in the WISH Program.*
-
Homebuyer has participated in a mortgage assistance program.
-
Homebuyer has paid at least 1% of the purchase price of the home from his/her own resources (including sweat equity).
-
Homebuyer has successfully completed a homebuyer counseling program.
-
Homebuyer is a first-time homebuyer, as defined by the member.
-
At the time of enrollment in the WISH Program, homebuyer meets income eligibility guidelines as published by the Bank, and is at or below 80% or less of the HUD area median income.
-
Homebuyer must open escrow on a home purchase transaction within one year of enrollment in the WISH Program.
*Enrollment in the WISH Program is not a guarantee to the homebuyer of receipt of funds.
Home Purchase Eligibility
To be eligible for 2008 WISH funds, the home purchased must be located in one of the counties designated by the Bank for a WISH fund allocation in 2008.
Use of Funds
WISH funds may only be used toward downpayment or reasonable and customary closing costs in conjunction with the purchase of housing to be used as the primary residence of the homebuyer. WISH funds may not be used by the member or the homebuyer in conjunction with projects or units receiving other subsidies from the Bank through its competitive AHP or other set-aside programs.
Disbursement of Funds
The Bank will reimburse the member after receipt of the HUD-1 settlement statement showing that the amount of subsidy requested was passed on to the homebuyer and used for eligible purposes. If the settlement statement or other closing documents show cash back to the homebuyer in the amount greater than $250, then the AHP set-aside subsidy that the Bank will reimburse to the member for the homebuyer will be reduced unless the member and the homebuyer provide sufficient documentation showing that the cash back was used for downpayment or reasonable and customary closing costs or to pay down the mortgage principal or as a credit toward the household's monthly payment on the mortgage loan.
In addition, the member must submit certain certifications and sufficient documentation prior to the disbursement of funds, including:
-
Certification that the households and units funded satisfy WISH Program guidelines and that the units are subject to a deed restriction or other legally enforceable retention mechanism that meets the requirements of applicable regulations and policies of the Federal Housing Finance Board.
-
Certification that the homebuyer is a first-time homebuyer, as defined by the member.
-
A copy of the retention mechanism securing the WISH funds.
-
Documentation verifying that the homebuyer is income eligible as stated under “Homebuyer Eligibility” above.
-
Certificate of completion of homebuyer counseling program.
-
The member must certify that the set-aside funds are being used for an eligible purpose and that the interest rate, points, fees, and other charges for all loans made in conjunction with the AHP direct subsidy shall not exceed a reasonable market rate of interest, points, fees, and any other charges for loans of similar maturity, terms, and risk.
-
A completed enrollment form.
Time Limits for Use of Subsidy
WISH Program funds that are reserved in 2008 must be used by the member to assist eligible households before March 31, 2009. Home purchase escrows opened by March 31, 2009, may be considered eligible for reimbursement.
Additional Guidelines
The WISH Program is part of the Bank’s Affordable Housing Program and is administered in accordance with the Federal Home Loan Bank Act, the applicable regulations and policies of the Federal Housing Finance Board, and the applicable requirements and policies of the Bank, including, without limit, the Bank’s AHP Implementation Plan, all as amended from time to time. Members participating in the WISH Program must execute an Affordable Housing Program Direct Subsidy Agreement—Homeownership Set-Aside Program and must meet the Bank’s standards of creditworthiness.
Last Modified: January 2008
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Workforce Initiative Subsidy for Homeownership (WISH) Program
Under the WISH Program, the Bank sets aside a portion of its annual Affordable Housing Program contribution to provide matching grants through Bank members for downpayment and closing cost assistance to eligible homebuyers who have participated in a mortgage assistance program. The WISH Program is designed to help working households in high-cost areas purchase homes near their work.
Uses
- Promote homeownership opportunities for very low-, low-, and moderate-income households
- Build and maintain relationships with new customers
- Expand the use of your institution’s financial products
- Help achieve your institution’s community investment goals
Key Advantages
- Provides up to $15,000 for each participating household, matching up to $3 for each $1 contributed by the homebuyer(s)
- Application process allocates funds for homeownership based on program eligibility, not on competitive scoring
Key Features and Guidelines
Funds Available
The Bank expects to set aside up to 10% of its annual AHP contribution each year to fund the WISH Program. The Bank will assist eligible homebuyers in the following Arizona, California, and Nevada counties:
Arizona
Apache
Coconino
Cochise
Gila
Graham
La Paz
Maricopa
Mohave
Navajo
Pima
Pinal
Yavapai
Yuma
California
Alameda
Butte
Calaveras
Contra Costa
El Dorado
Fresno
Humboldt
Imperial
Kern
Los Angeles
Madera
Marin
Mariposa
Merced
Monterey
Napa California
Orange
Placer
Riverside
Sacramento
San Benito
San Bernardino
San Diego
San Francisco
San Joaquin
San Luis Obispo
San Mateo
Santa Barbara
Santa Clara
Santa Cruz
Shasta
Siskiyou
Solano
Sonoma
Stanislaus
Sutter
Tehama
Tulare
Ventura
Yolo
Yuba
Nevada
Clark
Douglas
Washoe
Members may apply for a reservation of WISH funds for up to $400,000 from January 22, 2008, to February 22, 2008. A member may apply for an additional reservation of WISH funds for up to $50,000, subject to funds availability, until December 1, 2008, only if the member (1) applied for and received a reservation earlier in the year and (2) has fully disbursed those funds or has specifically reserved those funds for one or more homebuyers. Additional reservations will be awarded on a first-come, first-served basis.
If the Bank receives requests for WISH funds that exceed the amount set aside for the program for that year, the Bank may allocate available funds to eligible applicants in accordance with the Bank’s AHP Implementation Plan.
Applications
The Bank will accept applications from members from January 22, 2008, to February 22, 2008.
In general, applications must include:
-
Completed 2008 WISH Application for Funds Reservation
-
2008 WISH Program Application for Funds Reservation Attachment A (if applicable)
-
Executed Affordable Housing Program Direct Subsidy Agreement—Homeownership Set-Aside Program
Mortgage Assistance Program
The WISH Program makes AHP funds available through participating Bank members to qualified homebuyers who have participated in a mortgage assistance program. Mortgage assistance programs may have one or more of the following features:
- A grant or a deferred second mortgage to assist with downpayment and closing costs. Deferred second mortgages may carry interest, but the interest must be below market compared to a second mortgage of similar amount and term.
- Assistance in the form of a yearly deduction of principal and interest to be repaid at the end of the mortgage assistance period or at the sale of the property.
- A shared equity appreciation component.
- A sweat equity component that reduces the principal amount of the mortgage.
Homebuyer Eligibility
To be eligible for WISH funds, the homebuyer must meet the following eligibility criteria:
-
Homebuyer has enrolled in the WISH Program.*
-
Homebuyer has participated in a mortgage assistance program.
-
Homebuyer has paid at least 1% of the purchase price of the home from his/her own resources (including sweat equity).
-
Homebuyer has successfully completed a homebuyer counseling program.
-
Homebuyer is a first-time homebuyer, as defined by the member.
-
At the time of enrollment in the WISH Program, homebuyer meets income eligibility guidelines as published by the Bank, and is at or below 80% or less of the HUD area median income.
-
Homebuyer must open escrow on a home purchase transaction within one year of enrollment in the WISH Program.
*Enrollment in the WISH Program is not a guarantee to the homebuyer of receipt of funds.
Home Purchase Eligibility
To be eligible for 2008 WISH funds, the home purchased must be located in one of the counties designated by the Bank for a WISH fund allocation in 2008.
Use of Funds
WISH funds may only be used toward downpayment or reasonable and customary closing costs in conjunction with the purchase of housing to be used as the primary residence of the homebuyer. WISH funds may not be used by the member or the homebuyer in conjunction with projects or units receiving other subsidies from the Bank through its competitive AHP or other set-aside programs.
Disbursement of Funds
The Bank will reimburse the member after receipt of the HUD-1 settlement statement showing that the amount of subsidy requested was passed on to the homebuyer and used for eligible purposes. If the settlement statement or other closing documents show cash back to the homebuyer in the amount greater than $250, then the AHP set-aside subsidy that the Bank will reimburse to the member for the homebuyer will be reduced unless the member and the homebuyer provide sufficient documentation showing that the cash back was used for downpayment or reasonable and customary closing costs or to pay down the mortgage principal or as a credit toward the household's monthly payment on the mortgage loan.
In addition, the member must submit certain certifications and sufficient documentation prior to the disbursement of funds, including:
-
Certification that the households and units funded satisfy WISH Program guidelines and that the units are subject to a deed restriction or other legally enforceable retention mechanism that meets the requirements of applicable regulations and policies of the Federal Housing Finance Board.
-
Certification that the homebuyer is a first-time homebuyer, as defined by the member.
-
A copy of the retention mechanism securing the WISH funds.
-
Documentation verifying that the homebuyer is income eligible as stated under “Homebuyer Eligibility” above.
-
Certificate of completion of homebuyer counseling program.
-
The member must certify that the set-aside funds are being used for an eligible purpose and that the interest rate, points, fees, and other charges for all loans made in conjunction with the AHP direct subsidy shall not exceed a reasonable market rate of interest, points, fees, and any other charges for loans of similar maturity, terms, and risk.
-
A completed enrollment form.
Time Limits for Use of Subsidy
WISH Program funds that are reserved in 2008 must be used by the member to assist eligible households before March 31, 2009. Home purchase escrows opened by March 31, 2009, may be considered eligible for reimbursement.
Additional Guidelines
The WISH Program is part of the Bank’s Affordable Housing Program and is administered in accordance with the Federal Home Loan Bank Act, the applicable regulations and policies of the Federal Housing Finance Board, and the applicable requirements and policies of the Bank, including, without limit, the Bank’s AHP Implementation Plan, all as amended from time to time. Members participating in the WISH Program must execute an Affordable Housing Program Direct Subsidy Agreement—Homeownership Set-Aside Program and must meet the Bank’s standards of creditworthiness.
Last Modified: January 2008
© 2000-2008 Federal Home Loan Bank of San Francisco
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AHP