Are you paying $1,200 or more a month in rent? The reality is you could own a home and have a similar monthly payment. If your household income is $50,000 annually, a $150,000 home could be affordable with a 10% down payment. Your monthly payment on a $135,000, 30-year mortgage at a rate of 4.625% with an APR of 4.66% would be $1,202.39 (includes principal, interest, insurances, and taxes)—only a few dollars more than your current rent payment. Plus, homeowners enjoy tax advantages and equity growth in their home. Since taxes and home prices vary, your specific payment may be different. Other mortgage options are available with down payment options as low as 3%.
Why Rent When You Could Own?
Saving enough money for a down payment can be a hurdle for many first-time home buyers. That’s why HVFCU offers special programs to help first-time homebuyers. Consider this – you can buy a home responsibly with little or no money out of pocket. Some programs allow funds for closing costs and down payment to be in the form of gifts or for the seller to pay some or all of your closing costs. Other programs provide for down payment assistance. The opportunity for home ownership is closer than you think.
First Home Club Offers $4 in Grant Monies for Every $1
The First Home Club2 is a matched savings program for prospective homebuyers in New York State. The program is financed by the Federal Home Loan Bank of New York (FHLB) and offers qualified first-time homebuyers the opportunity to earn $4 in grant monies for every $1 saved over a 10-to-24 month period.
Qualifying for First Home Club
You can participate in the First Home Club if you are a first-time homebuyer and your total monthly income is 80% or less than the area median income. To participate in the First Home Club with Hudson Valley Federal Credit Union, you must live, work, worship, volunteer, or attend school in Dutchess, Orange, Ulster or Putnam County.
A first-time homebuyer is anyone (alone or with his/her spouse) who has not owned a home in the last three years, or single parents and displaced homemakers who owned a home with a spouse within the last three years.
First Home Club Helps You Save for a Down Payment & Closing Costs
When you enroll in First Home Club, you agree to save money in a dedicated HVFCU savings account for 10 to 24 months. The First Home Club subsidy grants $4 in matching funds for every $1 you save up to $7,500. So, if you save $78.13 a month for 24 months, you’ll have saved $1,875. The First Home Club can match your savings with up to another $7,500, giving you $9,375 towards your down payment and closing costs.
Receive $500 Off Closing Costs
If you are receiving a FHLB First Home Club grant and finance with HVFCU, you are also eligible for $500 off closing costs3. Combine the $500 off closing costs with HVFCU’s low mortgage rates and the First Home Club matched savings to maximize the affordability of your home.
Getting Started in First Home Club
Get started by enrolling in the “Homebuyer Counseling Program” that is offered through the following organizations:
- PathStone (New York State) – 845.569.0770 / 845.343.0771, pathstone.org
- Hudson River Housing (Dutchess County) – 845.454.9288, hudsonriverhousing.org
- Orange County Rural Development Advisory Corporation (Orange County) – 845.524.4663, ocrdac.org
- Putnam County Housing Corporation (Putnam County) – 845.225.8493, putnamhousing.com
- Rural Ulster Preservation Company (Ulster County) – 845.331.2140, rupco.org
Getting Your Mortgage with Hudson Valley Federal Credit Union
Here’s what you get with an HVFCU mortgage:
- Low mortgage rates
- Low down payment options
- Free pre-approvals
- Fast turnaround
- Low closing costs
- No mortgage pre-payment/payoff penalties
- In-house account servicing