For those of lower income and those who are dependent upon assistance programs, the dream of homeownership may be achieved through additional subsidies and innovative financing, as embodied in our Voucher Homeownership Program. This program enables families to achieve healthy and sustainable homeownership.
Participants in this program come from CDCLI’s existing Housing Choice Voucher Rental Assistance and/or Family Self Sufficiency Programs, as well as families receiving rental assistance from housing authorities in Nassau and Suffolk counties who partner with CDCLI on this program. Each household is evaluated in accordance with their income so that a maximum of 30% of their monthly gross income goes toward payment of principal, interest, taxes, and insurance payments (PITI). They obtain a mortgage for an amount they can afford through a conventional or FHA-insured lender. The difference between the conventional mortgage amount that the applicant can afford and the purchase price of the home, less the down payment, determines the amount of a second mortgage provided by CDCLI Funding Corporation, our non-profit affiliate which is a Community Development Financial Institution (CDFI). Each participant also receives services from CDCLI’s NeighborWorks® HomeOwnership Center, where families learn about budgeting, money and credit management, information about a variety of mortgage products, how to locate and negotiate the purchase of a house, and home maintenance. In addition, families are provided with a resource list for down payment assistance programs and houses being developed by CDCLI and other non-profits and municipalities that utilize state and/or federal subsidies to reduce the purchase price.