NEW ROCHELLE, NY – Are you a New Rochelle resident interested in buying your first home and might be interested in help with that down payment?
First-time home buyers in New Rochelle can now get help through a new down payment assistance program recently approved by City Council. The city will begin offering eligible home buyers up to 19% of the price of a single-family home, provided buyers can match at least 1% of their own funds and meet additional criteria.
“Expanding affordable housing and home ownership opportunities is central to New Rochelle’s vision of a growing diverse city where people from all walks of life are welcomed and provide pathways to put down roots in the community. community and move forward,” said City Manager Charles Strome. “The First-Time Home Buyer Down Payment Assistance Program is another example of the City’s commitment to residents and why New Rochelle, with its rich culture, vibrant downtown and its beautiful neighborhoods, is such an attractive place to live.
The First-time Home Buyer‘s Down Payment Assistance Program is designed for potential buyers of single-family homes, co-ops and condos valued up to $494,000. Eligible income is as follows:
- people earning an average of $71,400
- couples earning an average of $81,600
- families of 3 earning an average of $91,800
- families of 4 earning an average of $102,000
- families of 5 earning an average of $110,150
- families of 6 earning an average of $118,300
Applicants must purchase and occupy the home as their primary residence for five years, after which zero-rate loans will be forgiven.
The initiative was launched this month and will help make the American dream of homeownership a reality for local low- and middle-income households and will also address the racial wealth gap faced by communities in across the country.
Home ownership is widely considered the number one asset to accumulating wealth for most Americans. According to a recently released report by the National Association of Realtors, home ownership across the country continues to grow at its highest level since the Great Recession. However, in New York, black ownership (35%) and Hispanic ownership (28%) are both significantly lower than white ownership (66%).
“Our city is only as strong as the people who call it home and that’s why New Rochelle prioritizes innovative initiatives like this that are elevated through inclusivity,” the commissioner said at the development Adam Salgado. “We are proud of all of our residents and have an ongoing, long-term commitment to the people and diversity that make up New Rochelle.”
New Rochelle is launching a comprehensive outreach campaign to engage the community and spread news of the new program, including a dedicated website and social media campaign, in addition to town hall-style forums and community events for those who wish find out more and apply.
A forum for industry professionals will be held April 26 at City Hall and another for the general public will be held May 11 at the New Rochelle Public Library.
Funding for the program came from a combination of local and federal money through the US Department of Housing and Urban Development’s HOME program and the New Rochelle Affordable Housing Fund.
Additional eligibility for applicants are:
- a resident of New Rochelle
- a first-time buyer (cannot have owned a home in the 3 years preceding the purchase of a residence with HOME financing); requirement waived for US military veterans who have a DD-214, verifying honorable service.
- complete a mortgage counseling/education workshop at a HUD-certified nonprofit housing agency.
- buy a lead-free paint house in New Rochelle; a lead-based paint inspection will be performed for all homes built before 1978.
- occupy the purchased property as your principal residence
- pass a Housing Quality Standards Inspection before receiving HOME funding.
- must not enter into a contract of sale before having obtained a buyer’s certificate.
- pay, out of own funds, at least one percent of the purchase price on account.
- have a documented minimum annual family income of $40,000 and be able to obtain a mortgage
Applications can be obtained from the New Rochelle website website.