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. Funding assistance will be distributed by 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 a 0% interest conditional grant/deferred 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, below).
- 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 and must be verified as seller
- Verification of household income must be supplied. To
qualify, applicant households must meet the federal income guidelines for low-income households (between 50% AMI and 80% AMI).
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 and
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 Buffalo.
Eligibility of Property to be
- 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
- Property 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 2018 as per the applicable regulations is $143,000.00 (one-family).
- Location: The property to be purchased must be located:
- within the legal limits of the City of Buffalo
- outside the established 100-year
- Other Program
- 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 use a qualified mortgage loan product
with a mortgage financing institution and the loan product must be reviewed and in compliance with the Office of Strategic Planning Homebuyer Policies and Anti-Predatory Lending
- The Division of Housing will provide the DPCC funds for the
- 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).
- Prospective 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 homebuyer training provided
through a 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
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 adult
- 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
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;
- has one or more minor children for whom the individual has
custody or joint custody, or
- is pregnant, and
- 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, the 1003, and the Mortgage Commitment are required) at the time of application to the CBO in order to determine the funding assistance.
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
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 fees