The Community Development Corp. of Long Island (CDCLI) Funding Corp. has partnered with the Housing Development Fund (HDF) to allow first-time home buyers in Long Island, N.Y., to apply for SmartMove New York, a down payment assistance loan product 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 qualified, 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 – eliminating the need for private mortgage insurance, says CDCLI.
In order to qualify for the SmartMove Loan, eligible first-time home buyers 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.
As high housing costs can make it hard for first-time home buyers to save for a down payment, SmartMove New York loans help bring total 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 avoid paying for mortgage insurance and can save thousands of dollars over the life of the loan, notes CDCLI.
"With our NeighborWorks America and lender partners, CDCLI is investing in the American Dream of homeownership. We believe our efforts will result in many more families buying their first home on Long Island," says Marianne Garvin, president/CEO of CDCLI Funding Corp.
The purchaser's first mortgage must be provided by Citibank or People's United Bank, the current participating lenders on Long Island.