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First Time Homebuyer Assistance

Gerald And Susan MolickGerald and Susan Molick enjoy the comforts of their new country home.
"I never thought we'd be able to buy a house... but with this program, it's right in your reach."

Dreaming of a cozy home of your own? Read on...
 

 

The Tompkins County Planning Department has received funding from the N.Y.S. Governors Office for Small cities to assist eligible low to moderate income households to become first-time homeowners.  To participate, applicants must either live or work in Tompkins County, and all homes purchased must be located in Tompkins County outside the City of Ithaca.

Schedule of upcoming workshops
Click here to see if you are eligible

TERMS OF ASSISTANCE: The Homeownership Program will provide basic assistance of up to 30% of the purchase price plus up to $3,750 in closing costs. The maximum financial assistance to participants is $30,000.

Financial assistance is provided as second mortgage over a term of 15 years at 3% interest. In most cases, payment on this mortgage is deferred for the first five years. Participants must provide a minimum of $1,500 or 2% of the purchase price (whichever is greater) of their own funds for the home purchase. These funds cannot be gifts, participants must demonstrate the savings. All homes purchased must be on a permanent foundation and cost no more than $150,000.00

All participants must be able to obtain a mortgage for the remainder of the purchase price from a private financial institution. There are several Tompkins County mortgage lenders which have set aside mortgage funds and created enhanced terms for the Program participants, but households must use a participating lender in Tompkins County. Most of the banks and credit unions in our area know about the program and often refer customers to us.

HOMES TO BE PURCHASED: The intention of the program is to get new homeowners off on a solid start in a manageable home.  Therefore, all homes must be in good condition at time of sale; no "handyman specials" may be purchased with Program funds.  If one or two components of the home require rehab, additional assistance may be available on a case-by-case basis.   Double-wide mobile homes on a permanent foundation; condominium, cooperative and townhouse properties may be purchased as well as single-family homes. All homes purchased through the Program will be inspected before purchase at no charge to the participant.
We do not encourage first time homebuyers to look at houses before attending the workshop. To go through the program takes three months on average, at which time the house may no longer be available. We cannot assist homebuyers who already have a purchase offer on a house prior to entering the program.

FINANCING: Program funds will be allocated in the form of second mortgage with a 15 year term at 3% interest. Payment on this second mortgage may be deferred for the first five years. Participants will be required to pay their first mortgage, taxes, insurance and other expenses based on their financial institution's policies.

COUNSELING: There is a requirement that participants receive  counseling and education about home ownership before purchasing a home through the Program. All required counseling and education sessions are free to Program participants.

PARTICIPANT ELIGIBILITY: Income limits - participating households must have an income at or below 80% of the area median income, as calculated by HUD. The current income limits are:

Household Size    Income Limits

        1                   $36,600 
        2                   $41,850 
        3                   $47,050
        4                   $52,300
        5                   $56,500
        6                   $60,650
        7                   $64,850 
       8+                  $69,050

The above figures are based on current, combined gross income of all household members age 18 or older who will live in the house. Income includes the following:

  • All full and part-time pay, including self-employment

  • Bonuses, commissions and tips

  • Dividends and interest

  • Income from rent

  • Social security benefits

  • Unemployment compensation

  • Alimony and/or child support

  • Other income

Minimum Income: Because the cost of housing in Tompkins County, a minimum annual income of $14,000 is required.

Finally, each applicant must have a credit history free from bankruptcy or serious credit problems that would make a first mortgage unobtainable from a lending institution.