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First Time Homebuyers

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$500 First Time Homebuyer Education Course Credit

In an effort to promote financial education to First Time Homebuyers regarding Home Ownership, Happy State Bank, a division Centennial Bank, is offering a $500 Lender Credit to qualified First Time Homebuyers who purchase a primary home and complete a eligible Homebuyer Education Course. Reference the provided list of eligible First Time Homebuyer Education Courses. Course eligibility is subject to change. Please contact a Happy State Bank Mortgage Loan Originator to confirm course eligibility.

Program Details

  • Eligible borrowers to receive a $500 Lender Credit.
  • Only one FTHB Education course credit applied per loan (not per borrower).
  • Subject to applicable lending program rules including, but not limited to, minimum contribution and maximum interested party contribution requirements.
  • Credit provided at closing on Closing Disclosure. Borrower cannot receive cash back at closing and the credit cannot be applied to principal.
  • Can be used in conjunction with Affinity or Home Builder Borrower Incentive Programs.
  • Applicable to applications received on or after 10/1/22, but prior to 12/31/22.

Eligibility

The First Time Homebuyer Education Course Credit is available to those who meet the following guidelines:

  • At least one Occupying Borrower has not owned a home in the past 3 years. LoanSafe report must reflect no prior Home Ownership in the past 3 years. URLA Part 4, Section 5a, must indicate “NO” ownership in the last 3 years.
  • At least one Occupying Borrower completes a Homebuyer Education Course and provides a copy of their Certificate to a Happy State Bank Mortgage Loan Originator prior to final underwriting approval.
    • Eligible Homebuyer Education Courses include HUD, FHLMC, FNMA or Happy State Bank, a division of Centennial Bank.
  • The program is only available to borrowers who meet Happy State Bank’s underwriting guidelines.
  • Borrower receiving credit must occupy residence.
  • Only applicable to Purchase transactions.
  • A borrower who is a displaced homemaker[1] will be considered eligible if they had no ownership interest in a principal residence except for owning a residence with his or her spouse or residing in a residence owned by his or her spouse.
  • A single parent[2] will be considered eligible if they had no ownership interest in a principal residence except for owning a residence with his or her spouse or residing in a residence owned by his or her spouse.
  • A borrower who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.
  • When a borrower did or still does own a Second Home or Investment Property for beneficiary purposes or that was inherited, they are required to provide one of the following:
    • VOR documenting they have been renting elsewhere
    • Utility bills in their name showing they’re paying utilities at their current place of residence

Additionally:

  • For Beneficiary Owners, they are required to provide one of the following:
    • Letter of Explanation from the property owners listed on the deed verifying the borrower has been living there rent free and is on the deed for beneficiary purposes
    • Letter of Explanation from the property owners listed on the deed verifying the borrower has not been living there, and is on the deed for beneficiary purposes
  • For all inherited properties:
    • Personal Representatives Quit Claim Deed to document inheritance transfer
  • For displaced homemakers and single parents: MLO to document eligibility with a memo to the file.
  • For principal residence not permanently affixed to a permanent foundation: MLO to provide satisfactory documentation, such as personal property title and/or other tax records.

[1] A displaced homemaker is an individual who has been providing unpaid services to family members in the home and who has been dependent on the income of another family member but is no longer supported by that income.

[2] Single parent means an individual who is unmarried or legally separated from a spouse and has custody or joint custody of one or more minor children.

Exclusions

  • Borrowers who have owned a home in the past 3 years and Eligible Borrowers who have not completed a qualifying First Time Homebuyer Education course and have not provided the Certificate to a Happy State Bank Mortgage Loan Originator. Non-occupying First Time Homebuyers are ineligible. Refinances are ineligible.

 

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