Pay attention if your dream has been to buy a house, but you need a financial boost to achieve it. HomeFirst’s Down Payment Assistance Program now offers up to $ 100,000 to help low-income New York City residents who are in the process of purchasing a home for the first time.
But the good thing about the program is not only the generous help, as the city could forgive loans to certain beneficiaries under specific criteria.
The city’s Housing Preservation and Development Department (HPD) announced on Monday the expansion of the program, which more than doubled the financial assistance available to home buyers.
The expansion meets one of the goals of the Where We Live NYC fair housing plan, which aims to increase the amount of affordable housing available to low-income New Yorkers, particularly in underserved neighborhoods.
HomeFirst financial assistance can be used for down payments or closing costs to purchase a home for up to four families within the five boroughs. Applicants must earn up to 80% of the area median income.
The program is funded by the United States Department of Housing and Urban Development (HUD) and administered by the New York City Neighborhood Housing Services (NHS).
Participants must complete a homebuyer education course and contribute their own savings toward the purchase, as well as live in the home for 15 years to receive full loan forgiveness benefits through the program.
Since its launch in 2004, HomeFirst has helped more than 3,000 residents across the city become homeowners.
ABOUT HOMEFIRST
The HomeFirst Down Payment Assistance Program offers qualified homebuyers up to $ 100,000 toward the down payment or closing costs of a 1-4-family home, condo, or cooperative in one of the five boroughs of the New York City.
REQUIREMENTS
- This will be the first time you buy a home
- Complete a homebuyer education course taught by an HPD-approved counseling agency
- Contribute your own savings to contribute to your down payment or closing costs.
- Meet the income requirements of the program
- Make a minimum down payment of 3% towards the purchase of the house, and 1% of the contract deposit must come from the buyer’s own funds
- Those looking to purchase a 1-4 unit family home, condo or cooperative for owner occupancy in one of New York City’s five boroughs qualify
- Pass a Home Quality Standards (HQS) inspection prior to purchase
- Live in the home for at least 10 years if the loan received is less than or equal to $ 40,000, or 15 years if the loan is greater than $ 40,000
- Have a maximum family income of up to 80% AM
Open here to verify income.
PROCESS
Upon successful completion of the Home Buyer Education class, the prospective buyer will receive a certificate verifying that they meet the criteria for a forgivable loan of up to $ 100,000 for a down payment or closing costs on a new home. The certificate is valid for six months, with a subsequent renewal period of six months. After receiving the certificate, prospective home buyers can start the process.
Step 1: Present the certificate to a participating lender for pre-approval of a home loan.
Step 2: After receiving pre-approval from a participating lender, consult a licensed real estate professional to identify an affordable home.
Step 3: Hire a real estate attorney.
Step 4: Negotiate a sales contract with the seller.
Open here to locate organizations that can help you in the five boroughs, plus you can get more information about the process.
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