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First Home Club
About •
Income Guidelines •
Savings
Requirement •
Homebuyer Counseling •
Mortgage Financing •
Retention •
Apply |
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First Home
Club Enrollment Terms and
Conditions |
In order for a household to enroll in the First Home Club and become
eligible to receive a grant of up to $5,000 per household for assistance in
the down payment and closing cons towards the purchase of a home, all
applicants agree and understand that they must meet the following terms and
conditions:
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- Meet the definition of a First-Time
Homebuyer (Read the definition here).
- Household should meet the
income requirements for the First Home Club at
the time of enrollment with the bank.
- The time of enrollment is determined at
the time that the household opens the dedicated savings account with the
Bank.
- The actual household size is determined by
the number of verifiable household members (i.e.. any individuals related
by blood, marriage, or adoption, or unrelated individuals, including all
reported dependents) who will occupy the First Home Club-assisted
residence as established at the time of enrollment.
- In the event that the actual household
size changes prior to the time of closing (with either an increase or a
decrease in the number of individuals whose names will appear on the
title, closing agreements and related legal documentation). The Federal
Home Loan Bank of New York ("FHLBNY") will re-evaluate the qualifying
household size and income(s) retroactively to the time of enrollment
- The FHLBNY is responsible for ensuring
that all names, manner of title, etc. furnished by the Bank is consistent
among all closing agreements (e.g., settlement statement, note, mortgage,
etc.) and related legal documentation (e.g., contract of sale, deed.
etc.).
- Open a dedicated savings account with the
Bank and agree to systematically save a portion of the household's income
as determined below.
- Complete the homebuyer-counseling program
offered by the Bank by all Applicants/Mortgagors.
- Qualify and obtain mortgage financing from
the Bank for the purchase of a home
- Provide all necessary documentation to
determine eligibility within the Bank's first time homebuyer policy.
- Certify that all the information provided
to the Bank is true and accurate.
- Execute a Commitment Agreement with the
FHLBNY. The Commitment Agreement will be issued when the Bank has executed
the first mortgage commitment.
- Execute a legal recordable retention
mechanism document, at the time of closing which ensures that the home
remains affordable for a period of 5 years ("Recapture Period"). The
FHLBNY may request return, of a portion of the matching grant funds
awarded if the house purchased with the assistance of the matching fluids
is sold to an ineligible household (income exceeds 80% of the area median
income, adjusted for household size in which the house is located), If the
house is sold the first five years, 20%ofthe funds are forgiven each year.
- Agree that they may exercise the option to
refinance the first mortgage executed with the Bank. If it is a simple
refinance, which involves only a mortgage interest rate reduction, the
Applicant will not be required to return the matching grant funds. If the
first mortgage is refinanced and the Applicant elects to "take out" equity
during the Recapture Period, a portion of the grant funds must be
returned, but 20% of the grant funds will be forgiven each year.
- Agree to close on the purchase of a home
within the terms of the commitment Agreement.
- First Home Club funds may be used in
conjunction with other programs including other FHLBNY Affordable Housing
Program awards. The combined subsidy amount from the FHLBNY may not exceed
$20,000 per household.
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THE SAVINGS PLAN
Through personal counseling, the Bank will assist the household determine
income eligibility, whether or not the household would qualify for permanent
financing, an affordable price range for the purchase of a home, and the
total amount of savings required to cover the down payment and closing
costs. An affordable schedule of savings must be established with the
assistance of the Bank, which, if followed, would enable the household to
accumulate sufficient savings to reach an Equity Goal. The FHLBNY will match
$3 for every $1 saved by the household. The household must save in a
dedicated savings account with the Bank. The Equity Goal combined with the
grant funds of up to $5,000 will assist the household cover the down payment
and closing costs for the purchase of a home. In order to begin saving the
household must agree with the following:
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- Household must establish a systematic
savings plan
- Household must open a dedicated savings
account with the bank
- Household must make monthly deposits based
on the savings plan as determined with the Bank below
- Household may not make lump sum deposits,
which significantly exceed the schedule of savings plan
- Household must adhere to the systematic
savings plan for a minimum period of 10 months
- Household may adhere to the systematic
savings plan for a maximum period of 30 months after enrollment with the FHLBNY
- Household may withdraw savings at anytime,
which may result in ineligibility of grant
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