Thank you for your interest in the Lackawanna Housing Development Corporation’s (LHDC) First-Time Homebuyer Assistance Program.

If you decide to apply, please complete all required information within this application and compile the required income and eligibility documents listed on the last page of this application packet (Exhibit “A”). LHDC will only accept completed applications with 100% of documentation submitted.

Once you have completed the application and gathered all required documents, please call our office at (716) 823-5124 to schedule a meeting to submit your application. During this meeting, LHDC will go over the approval process, eligibility requirements, homebuyer education standards, lender coordination, and all program restrictions.

Program Overview

This program assists first-time homebuyers — defined as individuals or households who have not owned a home within the past three (3) years — in purchasing an owner-occupied 1- or 2-unit home in the City of Lackawanna.

Eligible applicants must meet moderate-to-low income limits and have less than $15,000 in total net assets (not including retirement accounts).

Funding for this program is provided by the New York State Division of Homes and Community Renewal (HCR) Office of Affordable Housing Corporation (AHC).

Program Benefits

This Program can provide up to a $30,000 deferred loan for the purchase and rehabilitation of one (1) or two (2) family homes in the City of Lackawanna. The loan is funded by the New York State Affordable Housing Corporation (AHC) and secured by a mortgage.

General Requirements

1. Maximum gross family income of 80% of area median income (combined assets of no more than 25% of the unsubsidized sale price of the home). *See Income Eligibility based on HUD guidelines*
2. Must attend a Homebuyer Education class.
3. Must be able to contribute $1,500 or 2% of the purchase price towards down payment and closing costs, whichever is greater.
4. Must be able to secure a first mortgage at an acceptable market interest rate, with taxes and insurance escrowed.
5. The home must be approved by LHDC. The homeowner must agree to spend at least 51% of the grant funds ($15,300) on rehabilitation costs, as determined by LHDC. Rehab must be completed within 6 months of closing.
6. Must live in the home for ten (10) years to receive the full benefit of the subsidy.
7. Must carry Homeowners Insurance naming the NEW YORK STATE AFFORDABLE HOUSING CORPORATION as an additional insured.

Steps to Home Ownership

1. Pre-qualify for a mortgage from a reputable lending institution.
2. Complete the LHDC application to determine eligibility.
3. Once approved, begin your search for a home with a real estate agent (approximately 60 days).
4. LHDC will inspect the property and determine the scope and cost of rehabilitation.
5. Applicant signs the rehabilitation agreement.
6. Sign the purchase offer (with LHDC approval, or include a contingency for LHDC approval).
7. Submit a mortgage application within seven (7) days of acceptance of the purchase offer.
8. Close on the house (approximately 45 days).
9. LHDC will provide the homeowner with bid documents.
10. Solicit a minimum of three (3) bids for rehabilitation within 30 days of closing.
11. Complete the rehabilitation within six (6) months of closing.

Important Program Rules

• All contracts of sale, mortgage agreements, and closing documents will be between you and the lender or seller.
• No purchase offer or contract may be executed using program funds prior to written authorization by LHDC.
• LHDC does not assign lenders, real estate agents, attorneys, or property inspectors. However, a resource directory may be provided to assist applicants during the homebuying process.

If you have any questions or concerns regarding this program, please contact us at (716) 823-5124.

We look forward to assisting you in your goal of becoming a homeowner!