Down Payment Acquisition and Rehabilitation Loan

 

  • A standard loan for first-time homebuyers to acquire and rehabilitate a house. The loan can be used for down payment and post-closing repairs, or for post-closing repairs only. The goal of this program is to improve the quality of decent, affordable housing for Long Island homebuyers.
  • Household gross income must at or below 120% of the area median income based on family size.
  • Loan amounts vary between $25,000 – $50,000.
  • This is a fully amortized loan over 30 years, with interest rate varying between 3% – 3.5% depending on household income
  • The home must be used as the primary residence and the homeowner .
  • It is required that 51% of the deferred loan amount must be used for post-closing home repairs.
  • All home buyers are required to complete Community Development Corporation of Long Island (CDCLI) NeighborWorks® Homeownership Center HUD approved Home Buyer Education class and counseling.
  • The Home Buyer is responsible for obtaining an Engineer’s report and CDCLI rehabilitation staff will assist in identifying the repairs, contract with licensed and insured contractors to get the best pricing, and provide project management and oversight.
  • The home being purchased must be located in Nassau or Suffolk County, must be a co-op, condominium, single-family, or legal two-family home, and must be owner-occupied. The purchase price should not exceed $500,000.
  • The loan will be secured with a note and mortgage. The income of all household members is used to determine eligibility, but only the applicant’s income will be used to underwrite the loan.

 

Contact Information:
Homeloan@cdcli.org
(631)-471-1215 ext. 151 or 193

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