Down Payment and Closing Cost Assistance Loan

A low-interest rate loan, for down payment and closing cost assistance, is available for first-time homebuyers to avoid Private Mortgage Insurance (PMI) and whose income is no greater than 120% of the area median income (AMI) based on family size (see chart below). The loan may be for up to $75,000 and is subject to program underwriting guidelines. Funds from CDCLI can be combined with borrowers’ own funds for up to 20% financing to avoid PMI. Eligible borrowers must have a commitment for a fixed rate first mortgage through an NYS-approved lender. All borrowers are required to complete CDCLI’s NeighborWorks Home Buyer Education Program.

The interest rate is fixed (3%, 3.25%, & 3.5%), set according to loan size, and subject to change. The maximum term of the loan cannot exceed the term of the first mortgage financing. The home must be owner-occupied, and the property type must be a co-op, condominium, single-family, or legal two-family located in Nassau or Suffolk County.

The purchase price cannot exceed $500,000. Total combined loan-to-value (including all sources of secondary financing) must not be greater than 105% of the appraised value. All loans will be secured with a mortgage, and the income of all household members will be used to determine eligibility. There is a $120 nonrefundable application fee.

Nassau and Suffolk County AMI 2021
Family Size 1 2 3 4 5 6 7 8
120% AMI $109,116 $124,704 $140,292 $155,880 $168,350 $180,821 $193,291 $205,762

AMI is established by HUD and changes every year. If you believe your household income is over the threshold when accounting for family size, please do not make your own individual underwriting decision. Please call our office to talk to a loan officer.

Contact Information
Residential Lending
631-471-1215 x 151
homeloan@cdcli.org

CDCLI Funding Corporation is a Community Development Financial Institution, certified by the U.S. Treasury Department. CDCLI is recognized by NeighborWorks America as an “exemplary organization.” We are a HUD approved housing counseling agency and a chartered member of NeighborWorks America.

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