A prospective homebuyer must:

• Be a first-time homebuyer
• Complete a homebuyer education course taught by an HPD-approved counseling agency
• Have their own savings to contribute to the down payment or closing costs
• Meet program income eligibility requirements
• Purchase a 1-4 family home, a condominium, or a cooperative for owner-occupancy in one of the five boroughs of New York City
• Pass a Housing Quality Standards (HQS) inspection before purchase
• Live in the home for at least 10 years 

Process

• Community-based counseling agencies certified by HUD and approved by HPD to participate in the HomeFirst program will promote the program through newsletters, flyers, and seminars; distribute program guidelines; and enroll consumers in Homebuyer Education classes. The counseling agencies will also certify income eligibility for the Down Payment Assistance Program, counsel consumers about program requirements, certify completion of Homebuyer Education classes, and refer consumers to participating lenders for pre-approval. Contact any one of the following HPD-approved counseling agencies.Have a household income up to 80% AMI

Upon the successful completion of the Homebuyer Education class, prospective home buyesr will receive a certificate that verifies their eligibility for the forgivable loan of up to $40,000 towards the down payment or closing costs on a new home. The certificate is valid for six months, with a subsequent six-month renewal period. After receiving the certificate, prospective homebuyers begin the path to homeownership. 

Step 1: Present the certificate of eligibility to a participating lender for pre-approval on a mortgage loan.

Step 2: After receiving pre-approval from a participating lender, consult a reputable real estate professional to identify an affordable home.

Step 4: Hire a real estate lawyer.

Step 5: Negotiate a contract of sale with the seller.

The homebuyer education counselors will be available to assist program participants throughout the home buying process. Program participants are encouraged to take advantage of this resource.

Program Administration

Neighborhood Housing Services of New York City (NHS) administers the program on HPD's behalf. As administrator, NHS works with the homebuyer and the representative from the counseling agency to:

• Request from the homebuyer copies of:
• Home buyer education certificate
• HomeFirst Certificate of Eligibility
• Bank pre-approval
• Sales contract
• Receive the HomeFirst application
• Review signed contract
• Verify eligibility of property based on location and type of property
• Verify income of mortgage applicants
• Verify eligibility of HomeFirst applicants
• Review pre-approval and verify lender is a participating lender
• Reserve funds for closing
• Receive copy of lender commitment letter
• Receive confirmation of closing date
• Release funds for closing