FHLBA Community Partners Product

Community Partners' $20,000 forgivable loan clears the $14,700 FHA minimum down payment on a $420,000 home in Charlotte, North Carolina, and leaves $5,300 for closing costs. For a teacher, healthcare worker, firefighter, or veteran buying at that price, the entire 3.5% comes from FHLBank Atlanta money that is forgiven after five years in the home.

Charlotte buyers should budget an estimated $8,500 to $12,500 for closing. Applying the $5,300 remainder cuts the buyer's share of that bill to roughly $3,200 to $7,200. Keep in mind you must contribute at least $1,000 of your own funds toward the purchase, but that $1,000 counts toward your overall closing costs.

If you also qualify for the NC Home Advantage Mortgage (up to 3% of the loan amount, or roughly $12,159 on this purchase), the combined assistance would total over $32,000, more than enough to cover your entire down payment and closing costs with funds to spare for inspection fees, moving costs, or first-year reserves.

The FHLBA Community Partners Product can be combined with state and local down payment assistance programs, but it cannot be stacked with the other two FHLBank Atlanta products (First Time Homebuyer Product or Workforce Housing Plus+) because all three draw from the same lender allocation pool. You choose the one FHLBank Atlanta product that best fits your situation.

Community Partners pairs well with state housing finance agency programs across the FHLBA district. An eligible North Carolina veteran or teacher could pair Community Partners ($20,000 forgivable) with the NC 1st Home Advantage Down Payment ($15,000 forgivable) for $35,000. That NCHFA loan replaces an NC Home Advantage Mortgage's standard 3%, so only one NCHFA benefit applies. Similar stacking exists in Georgia (Georgia Dream), South Carolina (SC Housing Forgivable Down Payment), Florida (Florida Hometown Heroes), Virginia (VHDA DPA Grant), Maryland (Maryland Mortgage Program), and Alabama (Step Up).

Community Partners can sit behind an FHA, VA, USDA, or conventional first mortgage. Contact your participating lender to confirm which specific combinations are available, as some lenders have their own restrictions on stacking. SECU does not allow FHLBank Atlanta products to be combined with their own in-house first-time homebuyer mortgage program, but that is a lender-specific restriction rather than a program-wide rule.

The biggest advantage of the FHLBA Community Partners Product is the combination of a high assistance amount ($20,000) and full forgiveness after just five years. Among the three FHLBank Atlanta homeownership products, Community Partners offers the most money and is the only one that does not require first-time homebuyer status, making it accessible to repeat buyers who are veterans, teachers, nurses, or first responders. The five-year forgiveness timeline is also relatively short compared to many state programs that require 10 to 15 years of owner-occupancy before forgiveness is complete.

On the downside, funding is limited and distributed first-come, first-served. Once your lender's $500,000 to $750,000 allocation is exhausted, you cannot access funds until the next cycle. The program is also restricted to specific occupations and military service. The 80% AMI income cap further narrows eligibility for higher earners. Buyers who qualify for Community Partners should apply early in the funding cycle (typically late February) and have a backup plan in case their lender's allocation has already been claimed. Buyers who do not meet the occupational requirements but are first-time purchasers should look at the FHLBA First Time Homebuyer Product ($17,500 forgivable), and buyers above 80% AMI should consider the Workforce Housing Plus+ ($15,000 forgivable).