Thanks to a new program, first-time homebuyers in Long Island will soon be able to buy a home with a down payment as small as 1%. The Community Development Corporation of Long Island announced a partnership with the Housing Development Fund to offer SmartMove New York, a down payment assistance loan product.
“We are proud to partner with HDF Connects to offer greater opportunity to people on Long Island to achieve their dream of owning a home,” said Marianne Garvin, president and CEO of CDCLI Funding Corporation.
In order to qualify for the SmartMove Loan, eligible first-time homebuyers must receive counseling from an approved partner agency, such as CDCLI and fulfill education requirements. Once counseled, they may choose to apply for the down payment assistance loan from HDF Connects.
Through participation in the SmartMove Loan, home buyers are able to put down as little as 1% of the purchase price toward their first home. If the purchaser qualifies, they will receive down payment assistance for up to 19% of the purchase price, through a 20-year second mortgage loan at a low fixed rate. The loan eliminates the need for private mortgage insurance.
The program will help bring total mortgage payments in line with a family’s budget by offering a second mortgage at a low fixed rate. When combined with a first mortgage that also meets industry standards for sound lending, borrowers can save thousands of dollars over the life of the loan.
The purchaser’s first mortgage must be provided by Citibank (C) or People’s United Bank (PBCT), the current participating lenders on Long Island.
“We have long known of the need for products like SmartMove New York in Long Island,” said Joan Carty, president and CEO of HDF Connects. “And we are happy to partner with CDCLI to help New Yorkers purchase their first home, and enjoy the benefits that come with owning a home.”
