● Loan Term: 10 years for loan less than or equal to $40,000 or 15 years for loans greater than
$40,000.
● Interest Rate: 0%
● Loan Amount: The formula for determining the HomeFirst loan amount is the lesser of 20% of
the purchase price of the home or $100,000.
● Income Eligibility: Borrower’s household income eligibility must be maintained up until the
property closing. The HPD Loan Servicer re-verifies household income before issuing an
approval and prior to closing.
● Down Payment Requirement: A minimum down payment (or contract deposit) of at least 3%
of the purchase price is required.
● Minimum Equity Requirement: The borrower is required to have sufficient savings to contribute
towards the down payment or closing costs and make a contract deposit from their own funds. At
least, 1% of the borrower’s own savings must be contributed towards the purchase. Between 2 –
6 months of Principal, Interest, Taxes, and Insurance (PITI) mortgage payments in borrower’s
reserve is recommended.
Note: VA loans or other loans approved by HPD, which require no down payment are
exempted from this requirement.
● Residency Requirement: HomeFirst loan recipients must agree to be the principal owner-
occupant and continuously occupy at least one unit in the home purchased as his/her primary
residence for a period of 10 consecutive years following the receipt of the down payment
assistance loan if the loan is less than or equal to $40,000 or for 15 consecutive years if the loan
is greater than $40,000. The enforcement mortgage recaptures funds in the event of a compliance
default. The HomeFirst loan amount is forgivable upon continuous occupancy of the home in
accordance with the “Owner Occupancy Requirements” as defined below:
The owner must reside and sleep in not less than one dwelling unit in the home for not less than
two-hundred and seventy (270) days per year (unless on active military duty, whereby each day
spent away from the dwelling unit while on active military duty, shall be counted as a day spent in
the dwelling unit for the purpose of this requirement), not lease any residential portion of the home
(except that, if the home contains multiple dwelling units, the homebuyer may lease the dwelling
units not occupied by the homebuyer, but not for transient occupancy), identify the home as their
sole address/residence on any tax return, voter registration, driver’s license or other permit to
operate a motor vehicle, and other document stating their address or residence, not own or lease
other residential property in, or within a 100 mile radius of, New York City (any residential property
acquired through inheritance must be sold within one year from the date it was acquired), and
annually complete and submit to HPD an owner occupancy certification..
● Fees: A non- refundable application processing fee of $1,500 payable to the HPD Loan
Servicer is required. Note: Payment is collected parts and must be made either by US Postal
Service money order or certified check and made payable to: Neighborhood Housing Services of
New York City or submitted through an electronic or online payment system utilized by NHS
NYC. Refer to the HomeFirst Loan Application Form for complete payment instructions.
● Cancellation/Withdrawal: The HPD Loan Servicer or HPD may withdraw, cancel, recapture or
refuse to make the loan if any of following occurs: (i) the mortgage lender refuses to close the
mortgage loan for any reason, (ii) the borrower is found not to be in compliance with
requirements of the Program, (iii) either the down payment assistance loan amount or the total
combined HOME subsidy on an HPD-sponsored property (i.e. property constructed, rehabbed or
otherwise subsidized by HPD), exceeds the HUD Maximum Per Unit Subsidy Limits, or (iv)
information provided by the borrower, mortgage lender or counseling agency during the
application process has been falsified or found to be substantially incorrect.
● Expiration: The loan approval expires one hundred twenty (120) days from the date of award.
Any extension of the loan approval is at the discretion of the loan servicer and/or HPD.