Light shining through the keyhole of a wooden door with a bright house visible through the hole.

Empowering Homeownership With TurnKey

Union State Bank has partnered with Federal Home Loan Bank Topeka to offer the new Turnkey suite of mortgage assistance programs. Designed to provide down payment and closing cost assistance to low and moderate income homebuyers, the 2024 grant programs provide up to $15,000 for qualifying individuals throughout the Midwest.

“In today’s economy every dollar counts. It’s important to understand your budget and where you can put your dollars to their best use.  Receiving grant funds can help our borrowers get into their dream home more quickly, and without quite as much strain on their wallet,” said Brittany Welch, Union State Bank’s Chief Credit Officer.

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, playing a vital role in fostering homeownership and economic growth in the region.

Recognizing that saving for a down payment can be a significant barrier to homeownership, the Turnkey program provides assistance to qualified borrowers who may have the financial capacity to make monthly mortgage payments but struggle to accumulate a substantial down payment.

“Buying a home, especially the first time, can be stressful. 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 Turnkey suite of programs include the Homeownership Set-aside Program (HSP) for first-time home buyers, HSP+ for designated high-cost and difficult development areas, and the Homeownership Possibilities Expanded (HOPE) program for either first-time or experienced homebuyers.

“Traditionally, we’ve offered the HSP grant program to our applicants that qualify as first-time home buyers to provide funds for down payments and closing costs.  Now, we will also be able to offer the HOPE program, which does not require the applicants to be first time home buyers and increases the income limit allowable for applicants to qualify, said Welch. “The HOPE program is meant to reach a wider group of potential borrowers.”

Beyond individual homeowners, the Turnkey program contributes to community development by stimulating the housing market and fostering economic growth. By promoting homeownership, the program has a ripple effect on local economies, creating stable and vibrant communities.

“These programs are important in today’s housing market as many potential buyers are opting out of the market. These grants give them the opportunity to make a larger downpayment, pay closing costs and make needed repairs,” said Brenda Butters, Mortgage Loan Officer with Union State Bank.

To take advantage of the Turnkey Mortgage Program, interested individuals should connect with a member financial institution affiliated with the Federal Home Loan Bank of Topeka. These institutions act as conduits, providing access to the resources and benefits offered by the program.

“When looking at financing options a home buyer should consider banks like USB that offer grant programs to give them a leg up on their down payment and closing costs, which will, in turn, lower their loan amount and monthly payments for the life of the loan. The best way to work through this is by finding a local lender that you trust, and who can provide you with the best option for your financial situation,” Welch said.

The Turnkey program exemplifies a commitment to making homeownership a reality for a diverse range of individuals and families. By addressing common barriers such as down payment and closing cost requirements, the program paves the way for more people to achieve their dream of owning a home. As Federal Home Loan Bank Topeka and their member partners like Union State Bank continue to foster community development and financial inclusivity, the Turnkey program stands out as a beacon of opportunity in the world of affordable housing.

About Union State Bank: Founded in 1908, Union State Bank has banking locations serving communities of Arkansas City, Newton, Udall, Winfield, and Wichita in Kansas and in Bartlesville and Edmond, Oklahoma. Union State Bank offers a full range of electronic, deposit and cash management services, as well as business and agriculture, commercial real estate, construction, mortgage, residential and consumer loans. Member FDIC. Equal Housing Lender, NMLS# 412388