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DPAP provides 19% of home purchase price for first-time buyers, putting the housing market within reach for more residents
Thanks to the City of New Rochelle’s innovative Down Payment Assistance Program (DPAP), a New Rochelle resident’s dream of home ownership has become a reality.
In December, 2022, New Rochelle resident Matthew Carino applied to the Down Payment Assistance Program. The DPAP is one of the City’s Affordable Housing initiatives, created in response to the growing need for affordable housing in the City. The program provides qualified purchasers with 19% of the sales price of a single-family home in New Rochelle. The goal is to keep New Rochelle residents in New Rochelle by making homeownership more affordable for moderate to low-income first-time homebuyers, where housing prices have made ownership unstable and unattainable. On Thursday, October, 5, 2023, Mr. Carino signed his mortgage papers taking over his new home.
“The New Rochelle down payment assistance program was a tremendous help in many ways. Aside from facilitating funds to assist with the purchase, the people who work for the program are really good at what they do,” said Mr. Carino. “They’re extremely helpful and made this process as seamless as possible. This program will help a lot of people get started on their future. I am extremely grateful to have had the opportunity to be accepted into this program and work with the representatives from the City of New Rochelle to secure the down payment for my new home.”
"The success of the Down Payment Assistance Program underscores our commitment to empowering New Rochelle residents through tangible, supportive pathways to homeownership," said Kathleen Gill, City Manager. "This moment is a testament to our unwavering dedication to fostering a city where people of all income levels can continue to call home for generations to come.”
The DPAP is subsidized by the City’s HOME Funding from the Department of Housing and Urban Development (HUD) and through the Affordable Housing Fund. Eligibility into the program is determined by Income and Property Level Limits as established by HUD. As of June 15, 2023, the program’s income requirements, which are based on 80 percent of the Area Median Income (AMI) for Westchester County, increased giving more families the opportunity to meet the financial eligibility guidelines. And as of July 01, 2023, HUD increased the Property Level Limit (PLL) from $556,000 to $595,000, allowing applicants who are eligible to qualify for mortgages more options in the type of home they can purchase. The down payment is a forgivable zero interest loan which erases at the end of five years.
"New Rochelle is proud to develop and implement initiatives like the Down Payment Assistance Program that ensure all our residents can access the wide range of housing opportunities in our city. A home provides the stability necessary to grow and prosper, and we look forward to continuing to deliver creative solutions keep New Rochelle an inclusive and thriving home for all," said Adam Salgado, Deputy City Manager and Commissioner of Development.
"The Down Payment Assistance Program is part of our pledge to sustain and elevate our diverse and dynamic community with equitable housing solutions that have real impact on our residents", said Council Member Martha López-Hanratty. "I am thrilled to see this important program take its inaugural steps and look forward to continuing to work together as we build programs that deliver inclusive opportunities."
The City of New Rochelle and WRO have worked with a number of mortgage lenders to get their approval to participate in the program. Currently, there are seven (7) lenders who accept the City’s DPAP grant and provide mortgages to eligible program participants: Bank of America, Citizens Bank, M&T Bank, Citibank, Chase, Emigrant Bank and TD Bank.
In some cases, these mortgage lenders will provide additional benefits to their approved borrowers. These benefits may include additional down payment assistance, which helps to reduce their loan amount and monthly payment, and/or providing a portion or all of the mortgagee’s closing costs.
To learn more about the City’s Down Payment Assistance Program and upcoming events, please go to the DPAP website at: www.ideallynewrochelle.com/down-payment/ or contact WRO at 914.428.4507.