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IDEA Program: Frequently Asked Questions
Who can submit an application for IDEA Program funds? Bank member institutions may submit applications for IDEA Program funds. Top
What are the basic eligibility requirements for households receiving IDEA Program funds?
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How may IDEA Program funds be used? Subsidy must be used only toward downpayment or closing costs in connection with the purchase of a housing unit to be used as the homebuyer's primary residence. Top
When should the member send a disbursement request to the Bank to be reimbursed for the IDEA subsidy? Disbursement requests must be received by the Bank within four months of the date that the homebuyer closes on the purchase transaction. Any outstanding documentation for the submitted disbursement request must be received by the Bank within four months from the date that the Bank receives the disbursement request. If the Member does not comply with these deadlines, the Bank reserves the right to decline the reimbursement of subsidy to the member. Top
When can IDEA Program funds be disbursed to a qualifying household? The Bank will reimburse the member after receipt of the closing statement showing that the amount of subsidy requested was passed on to the homebuyer. In the event there is cash back to the homebuyer in an amount greater than $250, the subsidy will be reduced unless the member and the homebuyer provide sufficient documentation showing that the cash back was used to pay down the mortgage principal or for downpayment or reasonable and customary closing costs or as a credit toward the household's monthly payments on the mortgage loan. In addition, the following certifications and documentation need to be submitted by the member prior to the disbursement of funds:
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How many IDEA Program dollars are available to a qualifying household? The Bank will provide up to $15,000 per household, matching up to $3 for every dollar saved by the homebuyer. Top
Can IDEA Program funds be used together with other Affordable Housing Program (AHP) subsidy for owner-occupied units? No, IDEA subsidies cannot be used in conjunction with AHP projects or units receiving other subsidies from the Bank through the competitive AHP or the Workforce Initiative Subsidy for Homeownership (WISH) Program, our other set-aside program. Top
When are applications for IDEA Program funds due to the Bank? Application deadlines and materials are typically posted on the Bank's website at the beginning of the year. Top
What is the allocation of funds for the program? Each year, the Bank expects to set aside a percentage of its annual AHP contribution to fund the IDEA Program. Top
What will happen if the demand for IDEA funds exceeds the amount of funds available? In any funding year, if the Bank receives requests for IDEA funds that exceed the amount set aside for the program for that year, the Bank will allocate available funds to eligible applicants in accordance with the Bank's AHP Implementation Plan. Top
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