Question 1

Do I have to pay back the FHLB down payment assistance grant?

Accepted Answer

It depends on the program. The Workforce Housing Plus+ grant ($15,000) requires zero repayment. It’s a true grant with no strings attached. The Set-Aside ($17,500) and Community Partners ($20,000) grants carry a five-year retention period. If you sell or vacate the home within five years, you may owe back a prorated portion. After five years, the obligation is fully forgiven.

Question 2

What is the FHLB income limit for 2026?

Accepted Answer

It depends on two things: where the property is located and how many people are in your household. FHLB uses Area Median Income (AMI) thresholds that vary by region.For example, in the Baltimore Metro area, a single person can earn up to $109,560 and still qualify for the Workforce Housing Plus+ program, while a family of four can earn up to $156,360. The DC Metro area limits are roughly 25% higher at $137,760 for a single person and $196,680 for a family of four.If your income falls below 80% of AMI, you may qualify for the larger Set-Aside ($17,500) or Community Partners ($20,000) grants. Contact the Downs Mortgage Group to verify your exact eligibility based on your county and household size.

Question 3

Can I use FHLB grants with an FHA, VA, or Conventional loan?

Accepted Answer

Yes. FHLB grants are compatible with most standard loan types, including Conventional, FHA, VA, and USDA loans. They can even be applied to purchase-rehabilitation loans, such as the FHA 203(k). The grant funds are typically applied at closing to reduce your loan amount, cover closing costs, or fund your down payment.

Question 4

Do I have to be a first-time homebuyer to get an FHLB grant?

Accepted Answer

Not for all programs. The Workforce Housing Plus+ ($15,000) and Community Partners ($20,000) programs are available to both first-time and repeat buyers. Only the Set-Aside product ($17,500) requires that you haven’t owned a home in the past three years.

Question 5

How long does the FHLB grant process take?

Accepted Answer

From application to funding, the process typically takes 2 to 4 weeks. FHLB reviews applications in about 7 to 10 business days. Once approved, they issue a 45-day Conditional Commitment, during which you complete any required counseling and prepare for closing. Pre-funding documentation must be submitted at least 3 business days before your closing date. The Downs Mortgage Group manages the full timeline so you know exactly what to expect at each step.

Question 6

What happens if FHLB grant funding runs out?

Accepted Answer

FHLB allocates a fixed pool each year and distributes it on a first-come, first-served basis through member institutions. Each lender receives a limited allocation ($500,000–$750,000 per offering period). Once it’s gone, you must wait until the next funding cycle. This is why we recommend starting the eligibility process early, before you go under contract.

Question 7

How do I find a lender that offers FHLB grants in Maryland, DC, or Virginia?

Accepted Answer

Not all lenders are FHLB member institutions, and many that are do not actively promote the program. You need to work with a lender that has an active FHLB allocation and experience managing the application process. John Downs and the Downs Mortgage Group at Vellum Mortgage are FHLB participating lenders serving Maryland, DC, and Virginia. Contact us to check your eligibility and confirm current funding availability.

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