The Office of
Strategic Planning, through its neighborhood based partners, will administer and implement the Down Payment and Closing Cost Assistance (DPCC) / First Time Home Buyers Program. The City receives CDBG
funds from the federal Department of Housing and Urban Development and uses these funds to provide assistance to first time homebuyers. Loan funds will be issued through the City of Buffalo
Urban Renewal Agency. Applications must be submitted to the Office of Strategic Planning not less than eight weeks before the projected closing date
The goal of the DPCC / First-Time homebuyer’s Program is to expand home-ownership opportunities by providing financial assistance to low and moderate income first-time homebuyers
for closing costs related to the purchase of their first home. Funds are provided as an interest-free conditional grant/loan with a five-year term that is secured by a second mortgage
on the property. You need not make any monthly payments toward this loan unless your home is sold, or transferred before the end of the term. In those cases, the full amount of the
loan will have to be repaid. If you reside in the property as your principal residence for the full five years, and meet all other program obligations, at the end of the five-year term, the
loan will be forgiven.
- The applicant must be
an income-eligible first-time homebuyer, that is, an individual and his or her spouse who have not owned a home during the three-year period prior to purchase of a home (see Definitions,
- The property must be
an eligible one-family dwelling located in the City of Buffalo that is in generally good condition with no major housing code violations or lead based paint hazards that must be
verified as seller occupied.
- Verification of
household income must be supplied. To qualify, applicant households must meet the federal income guidelines for low income households.
No application will be processed until all necessary, required documents for the program are submitted to the Office of Strategic
Planning Division of Housing staff.
Financial Assistance Limits
Funding will be provided as a deferred payment, zero percent interest
(0%) loan/conditional grant of up to $5,000.00. If the purchaser resides in the home for the full five-year term of the loan, the loan will be forgiven and no repayment is required. The
assistance will be available to income-eligible homebuyers obtaining mortgage financing for the purchase of a home. The property to be purchased must be located within the legal limits of the City of
Eligibility of Property to
- Type of
Property: The home to be purchased must be a single
family seller occupied (owner-occupied) home, situated on a parcel of land to be owned and occupied by the purchaser as their primary residence. Home should not have been transferred within 24 months
of this transaction.
- Condition of
Property: The property to be purchased must be in good
condition, not in need of repairs and should be in compliance with both federal Housing Quality Standards and City of Buffalo Housing Codes. Any lead based paint hazards must be addressed by
the seller and a clearance test must be completed to ensure compliance with applicable federal requirements.
Value: Pursuant to federal regulations, the sales price
of the property to be purchased cannot exceed the HUD Homeownership Value Limits for an existing one-family house in the Buffalo area. The property value limit for 2017 as per the applicable
regulations is $140,000.00 (one-family).
- Location: The property to be
purchased must be located:
- within the legal
limits of the City of Buffalo and,
- outside the
established 100-year floodplain.
- Other Program Parameters
- BURA will provide up to 50% of the down payment required
by the lender for the low or moderate-income homebuyer on condition that at least $500 of his/her own money has been invested toward the purchase of the property.
- Taxes and insurance must be paid through an escrow account
with the mortgage lender.
- The applicant must qualify for a mortgage loan with a
mortgage financing institution.
- The Division of Housing will provide for the loan closing
for the DPCC Program funds.
- If substantial work is required to bring a property
into compliance with local codes, the purchase will not qualify for assistance through the OSP Down Payment and Closing Cost Assistance Program. In such cases, the purchase, closing costs and
partial rehab financing may be financed under an existing lender sponsored program such as the 203K or other program.
- A visual assessment analysis for deteriorated-lead
based paint must be completed by a certified evaluator for each property considered for the program. Any identified hazards must be addressed in accordance with the federal regulations at 24
CFR Par 35 (Lead-based Paint Poisoning Prevention in Certain Residential Structures).
homebuyers must attend the homebuyers workshop/seminar offered through a HUD certified homebuyer training program, including programs available through Belmont Housing Resources of WNY (884-7791),
the Urban League (854-7625), West Side Neighborhood Housing Services (885-2344) and HomeFront (856-2952).
- Purchasers who have completed home buyer training provided
through an qualified agency during the twelve month period prior to the date of the contract of sale will not be required to repeat the training, but must submit a copy of the certificate issued by
the certified agency.
- Prospective homebuyer
must qualify as a “first time homebuyer”, specifically:
A First-Time Homebuyer
is defined as an individual and his or her spouse who have not owned a property during the three-year period prior to purchase of a home with assistance to be provided under the DPCC program.
The term includes any individual who is a displaced homemaker, or single parent.
An individual who, while married, owned a home with his or her spouse or lived in a home owned by his or her spouse during the previous three year period,
- is an
- has not worked
full-time full-year in the labor force for a number of years but has, during such years, worked primarily without remuneration to care for the home and family; and
- is unemployed or
underemployed and is experiencing difficulty in obtaining or upgrading employment, and
- the prior residence
was awarded to the spouse or required to be sold as part of the divorce settlement
An individual who, while married, owned a home with his or her spouse or lived in a home owned by his or her spouse during the previous three years, AND -
- is unmarried or
legally separated from a spouse; and
- has one or more minor
children for whom the individual has custody or joint custody, or
- is pregnant,
- the prior residence
was awarded to the spouse or partner or was required to be sold as part of the divorce settlement
Closing Costs Covered
· Funds may be used to pay for the down payment assistance and the reasonable and customary closing costs defined in 24 CFR 92.602, including reasonable and necessary costs incurred by the homebuyer with the traditional financing of single family housing acquisition. These costs include, but are not limited to costs to process and settle the financing for purchase of a home, such as private lender origination fees, credit report fees, fees for title evidence and insurance, fees for recordation and filing of legal documents, attorney’s fees, mortgage application fees, appraisal fee, mortgage insurance, filing fees, adjusted city and/or county property, water and sewer taxes, legal fees, search, survey, escrow start up, and points (limited to origination points).
· DPCC funds may NOT be used to complete or pay for any repairs to the property.
· An itemized list of closing costs must be presented. (The Loan Estimate is sufficient at the time of application; a more accurate list will be provided by the lender as part of the monthly payment negotiations).
- Buyer's financial
responsibilities associated with purchase of home at closing, excluding fees paid outside closing (POC).
Any remaining assistance
after closing costs must be applied to the principal balance of the mortgage. Loans may not exceed $5,000.00. Any potential “cash out” to the purchaser must be returned to BURA and may not be
released to the homebuyer.
Down Payment and Closing Cost
Assistance does not cover reimbursement for funds paid prior to closing and Paid outside of closing (POC), for example: 1st year’s homeowner insurance, home inspection, Bank attorney
Last Update: September 27, 2017