First-Time Home Buyer (CHF)

All applications on this page should be email to: CHFapplications@southamptontowny.gov

FIRST TIME HOME BUYER ASSISTANCE PROGRAMS: 
OVERVIEW
Each homebuyer has different needs so the CHF will offer a variety of no-interest and low- interest mortgage loan programs for eligible homebuyers in order to create opportunities for first time homebuyers. A first time homebuyer is an eligible individual who has not owned a primary residential property and is not married to a person who has owned a residential property during the three-year period prior his or her purchase of the primary residential property and who does not own a vacation or investment property.

A. DOWNPAYMENT ASSISTANCE PROGRAM FOR FIRST-TIME HOMEBUYERS
     Download PDF of the Guidelines

Important: Please retain this copy of the program guidelines after you send in the application as it contains important program information.

  1. GRANT ASSISTANCE: The Community Housing Fund (CHF) down payment assistance funds are no-interest loans that are re-paid at the time the home is re-sold or refinanced. Eligible applicants can receive funds of up to 3% of a home’s purchase price to assist them with a down payment towards the purchase of their first home in the Town of Southampton.  
  2. ELIGIBILITY CRITERIA: An applicant must:
  • Be a First-Time Homebuyer. Defined by Southampton Town Code §140-40 as an eligible individual who has not owned a primary residential property and is not married to a person that has owned a residential property during the three year period prior to his or her purchase of the primary residential property, and who does not own a vacation or investment home. 
  • Be an Eligible Individual.  Defined as a household income that does not exceed 100% of the income limits as established by the State of New York Mortgage Agency low interest rate loan program in non-target categories for Suffolk County in effect on the contract date for the sale of such property. (see the chart that follows).
  • Purchase Community Housing. Defined as a primary residential property for an eligible individual that does not exceed 150% of the purchase price limits established by the State of New York Mortgage Agency low interest rate loan program in non-target categories for Suffolk County in effect on the contract date for the sale of such property.  (currently, a maximum purchase price of $1,665,600)
  • Must be able to Qualify for a Mortgage.  An applicant must have tax returns and pay stubs (or other applicable documentation) to prove a minimum annual household income that is sufficient to qualify for the mortgage.
  • Attend a mortgage counseling session. Given by The Community Development Corporation of Long Island (CDLI) which is a HUD certified not-for-profit housing agency and submit proof of attendance (a certificate of completion). Each individual named on the mortgage must attend mortgage counseling to qualify.
  • Have sufficient financial resources and credit to qualify for a mortgage. The applicant is required to have a minimum of 2% of the projected purchase price deposited in the bank at the time of application.  The applicant will sign a Note & Mortgage with the Town of Southampton that will be subordinate to the bank or lending institution that is providing the primary mortgage. This program does not fund closing costs.
  • Occupy the subject property as their primary residence during the entire lien period.
  • Have NOT entered into a Contract of Sale to purchase a home prior to being issued a Purchaser Certificate by the Southampton Town Department of Housing and Community Development.

3.    INCOME GUIDELINES: The maximum permitted gross annual household income for applicants shall not exceed such amounts are set forth below.

Household Size    Maximum Allowable Income*
1 and 2 persons    $184,680
3+ persons     $215,460

*Please note that the maximum allowable income includes all income such as overtime, bonuses, pensions, social security, 401-K distributions, tips, etc. Your gross income cannot exceed the maximum annual income for your household size.

4.    HOMEBUYER CONTRIBUTION: The applicant is required to have a minimum of 2% of the projected purchase price deposited in the bank at the time of application. Applicant’s liquid assets cannot exceed the purchase price of the house.

5.    PROPERTY VALUE LIMIT: The maximum appraised value of the residential property cannot exceed $1,665,600.00.

6.    TYPES OF ELIGIBLE HOUSING: Pre-existing or newly constructed residential properties located within the Town of Southampton must be occupied as the borrower’s primary residence, including single and two-family houses, condominiums, and townhomes. 

7.    Applicants must purchase a home that is located within the Town of Southampton.

8.    Mortgage Counseling and Homebuyer Education Requirements: Applicants must have adequate financial resources and credit to qualify for a mortgage. In order to help you with the home buying process, it is required that all applicants obtain one-on-one/in-person mortgage counseling from Community Development Corporation of Long Island (CDLI). There may be a fee for counseling services. CDLI will advise you on many aspects of purchasing a home and securing a mortgage. Even though it is the responsibility of the applicant to secure a mortgage, CDLI can refer you to banks that offer first-time homebuyer mortgage products. CDLI can also assist you with clearing up any credit problems that you might have. Therefore, you are advised to schedule an appointment as soon as possible. All applicants are required to provide a mortgage counseling certificate as proof that the counseling was completed.

9.     PURCHASER CERTIFICATE: Purchaser Certificates will be issued to eligible applicants in the order in which the applications are received by the Town of Southampton Department of Housing and Community Development. Program funds are limited. This Purchase Certificate, issued by the Town represents a sum of up to 3% of the home’s purchase price to be applied toward the down payment of the recipient’s purchase of an owner occupied, residential property located within the Town of Southampton.

Applicants will be notified when all available Purchaser Certificates have been issued and a waiting list has been established. Eligible applicants who are issued Purchaser Certificates will have 180 days from the date the Certificate is issued to submit a fully executed Contract of Sale to the Town of Southampton Department of Housing and Community Development. Failure to return a fully executed Contract of Sale by that date shall result in the automatic nullification of the Purchaser Certificate. As Purchaser Certificates are nullified, new Certificates will be offered to eligible applicants in the order they appear on the waiting list. Applicants may request a one-time extension of their Purchaser Certificate, to be granted at the sole discretion of the Town.  All such requests must be submitted in writing 15 days prior to the Purchaser Certificate expiration date.

After entering into a contract to purchase a residential property, applicants have 90 days to secure a mortgage with a recognized lending institution and close title on the subject property. The Town of Southampton recommends that your attorney or representative include a clause in your contract that nullifies it in the event that you are found to be ineligible for the Down Payment Assistance Program.

All applications are subject to underwriting as part of CHF’s review process. Underwriting calculations will be done using information from the bank’s mortgage application (1003). Ratios must fit within the CHF parameters. Housing Debt to Income, Total Debt to Income and Mortgage Amount to Appraised Value. 

10.    OBTAINING THE GRANT ASSISTANCE: As a condition to obtaining assistance, applicants are required to submit to the Town of Southampton Department of Housing and Community Development Office the following documents as soon as they are available:

  • Mortgage Counseling Certificate
  •  Fully executed Contract of Sale (copy)
  •  Mortgage Application (copy): also known as a 1003 form.
  • Appraisal of the Subject Property (copy).
  • Mortgage Commitment (copy).
  • Fully executed and notarized Down Payment Assistance Agreement.

In order to receive the assistance, eligible applicants will be required to sign a Note & Mortgage to secure the terms of the loan. Before submission, please make sure your application and all accompanying documentation is complete and accurate. Once received by the Department of Housing and Community Development, any changes to your application could place your application at risk of being moved to the end of the application list.

11.    RESTRICTIONS:

  • The applicant must not have entered into a Contract of Sale to purchase the subject property prior to being approved for the CHF Down Payment Assistance Program and issued a Purchaser Certificate from the Department of Housing and Community Development.
  • Private mortgages are not allowed. Mortgages must be obtained through a licensed and recognized FNMA/FMAC lending institution.
  • No Short Sales allowed. No foreclosures Allowed.
  • No Bank Owned Properties are allowed.
  • Non-occupying co-borrowers/co-signers/guarantors are not permitted.
  • 100% financing is Not Permitted.
  • Interest Only Mortgages and Adjustable Rate Mortgages are Not Permitted.
  •  “No Doc” Loans or No Income Check Loans are Not Allowed.
  •   80/20 Loans are Not Allowed.

12.    CLOSING: The funds will be provided to the applicant by the Town of Southampton at the closing. A representative of the Town of Southampton Department of Housing and Community Development Office will attend the closing and will provide the check.

The Down Payment Assistance is a zero interest deferred payment loan that will be re-paid when the house is sold, transferred, refinanced or rented out. Recipients will be required to verify on an annual basis that they are occupying the property as their primary residence.

13.  ANNUAL RE-CERTIFICATION: All eligible applicants who receive the down payment assistance will be required to live at the subject property as their primary residence. 

The Community Development Office reserves the right to perform an in-person inspection of the home each year. 

A monitoring affidavit will be mailed annually to the loan recipient in order that they verify in writing that the subject property is being maintained and in compliance with the following guidelines:

  • Loan recipients are the current owners of the subject property.
  • The subject property is currently occupied as the loan recipient’s primary residence.
  • The subject property is properly insured and maintained in agreement with the terms of the Note and Mortgage.
  • No interest in the subject property has been sold, rented or transferred. 

APPLICATION PROCEDURE: Be sure to include all required documentation with your application as stated on the application checklist. Incomplete applications will not be considered. Complete applications will be evaluated on a first-come first-served basis. Applications may be submitted via email to chfapplications@southamptontownny.gov or you may mail or drop off application to: 

Town of Southampton
Department of Housing and Community Development
Attention: CHF Down Payment Assistance Program
240 W Montauk Highway
Hampton Bays, NY 11946

  • Do not send any original documents; the Department of Housing and Community Development Office is not responsible for their return.
  • Application packages may be hand delivered. They must be in a sealed envelope. 
  • Applicants will be notified of their eligibility status by mail and email (if email address is provided), as soon as a determination has been made.
  • Applicants are strongly encouraged to type their information into the application.

The Town of Southampton reserves the right to nullify and/or void any Purchaser Certificate issued for the CHF Down Payment Assistance Program based on funding availability and any changes in eligibility status prior to closing as funding is limited.

The Town of Southampton is not responsible to any party for the loss of a down payment or any other damages which may arise as a result of the applicant’s failure to adhere to the terms of the CHF Down Payment Assistance Program Guidelines, as stated in this document.

FOR QUESTIONS OR FURTHER INFORMATION CONTACT: 
The Town of Southampton 
Department of Housing and Community Development 
631-702-1745
Email: chfapplications@southamptontownny.gov


B. SHARED EQUITY PROGRAM WITH FIRST TIME HOMEBUYER
A program designed to make homeownership more affordable and accessible for first time homebuyers who otherwise might struggle to save for a down payment or qualify for a traditional mortgage. This subsidy is designed to help low-moderate income buyers achieve homeownership within the Town of Southampton.

  • Maximum household income of 80% of the Area Median Income (AMI)
  • The loan consists of a percentage of the property’s purchase price
  • CHF shares in the property’s appreciation when it is sold or refinanced in order to recoup its initial investment
  • Borrowers need to occupy the home as their primary residence

C. REMODEL PROGRAM FOR FIRST TIME HOMEBUYERS

Some first-time homebuyers wish to purchase a “fixer upper”, or a dilapidated or foreclosed property at a lower cost. Paying for the necessary repairs can add up. The CHF Remodel Program provides mortgage financing options that let a buyer purchase a property and pay for the needed repairs to make the home livable.

  • Low interest rate, 30 year loan
  • Per unit award used to cover rehabilitation/improvement expenses that will enhance the community
  • Eligible home improvements include:
    • Structural alterations and reconstruction
    • Installation of kitchens and bathrooms
    • Eliminating health and safety concerns
    • Plumbing or electrical updates
    • Roofing

 D. EMPLOYER ASSISTED DOWNPAYMENT PROGRAM FOR FIRST TIME HOMEBUYERS

CHF will tailor a program to each specific business in order to come up with a scenario that works for the organization and its employees including the amount of the contribution.

  • Participating employers provide a match of the program financing through various options, including deferred or repayment loans, matching down payment and/or interest rate buy downs.