2025 Mortgage Grant Program

TurnKey Mortgage Grants Provide Up To $15,000 In Assistance to Home Buyers

Union State Bank (USB) is currently offering qualifying home buyers mortgage assistance grants of up to $15,000.00. The grants are made possible through USB’s partnership with Federal Home Loan Bank (FHLBank) Topeka and their “TurnKey” suite of products. TurnKey includes multiple grant programs designed to address the challenges of attaining homeownership in the Midwest.

Federal Home Loan Bank Topeka is part of the nationwide Federal Home Loan Bank System, created to provide financial institutions with the resources to support housing and community development. The Topeka branch serves financial institution members like Union State Bank, in Colorado, Kansas, Nebraska, and Oklahoma. FHLBank does not work directly with homebuyers.

“For more than 25 years, FHLBank Topeka has provided down payment and closing cost assistance to very low, low and moderate-income first-time homebuyers as part of our commitment to making housing accessible and affordable,” according to FHLBank’s website. “We are proud to support the dream of homeownership and partner with our members to build communities and change lives.”

Union State Bank participates in two of FHLBank’s TurnKey programs, the Homeownership Set-aside Program (HSP) and the Homeownership Possibilities Expanded (HOPE) program. USB acts as a conduit, providing access to the resources and benefits offered by FHLBank. USB mortgage experts work with qualified homebuyers, submit documents to FHLBank and, if approved, USB provides grant funds to the homebuyer at loan closing.

Grant funds may be used for down payment, closing cost assistance and qualifying home repairs. Grant requirements mandate that at least one adult household member complete a homebuyer education course, provide proof of household income, and HSP grant applicants must be first-time home buyers. All of Union State Bank’s mortgage officers are trained to assist home buyers in understanding and completing the grant requirements.

“These programs give buyers a head start and can be used instead of draining their savings,” explained Marcene Carstensen, Union State Bank’s VP of Mortgage Loans.

The HSP grant program is limited to low to moderate income first-time home buyers, providing up to $15,000.00 per grant. Homebuyers must earn at or below 80% of the area median income to qualify. FHLBank has reserved $15.9 million in HSP grant funds for 2025.

“The HSP is a great program for first-time homebuyers with low to moderate income. The process to apply is simple, and funds don’t have to be paid back if the buyer maintains ownership of the home for five-years,” explained Carstensen.

The HOPE program is designed to provide up to $12,500 to low- and moderate-income homebuyers. The HOPE program removes the first-time home buyer requirement and allows for an household income limit of at our below 150% of the area median. FHLBank has reserved $4.9 million in HOPE grant funds for 2025.

“By reducing upfront costs, these grants empower buyers who may have the income to afford monthly payments but struggle with the initial hurdle of down payments and closing costs,” said Victoria Hemphill, Union State Bank’s Mortgage Processing and Servicing Manager. “It’s about more than just financing, it’s about providing opportunity, stability, and a pathway to long-term community growth.”

Union State Bank continues to accept applications for both TurnKey grant programs. Interested individuals can learn more about the TurnKey programs on Union State Bank’s website, www.MyUnionState.Bank, or by visiting their closest USB branch.