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Town of Babylon
200 E. Sunrise Highway
Lindenhurst, NY 11757
Ph: (631) 957-3000
Fx: (631) 957-7440
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Down Payment Assistance Program
Town of Babylon Home Down Payment Assistance Program

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Notice of Application Availability and Intake

As part of an ongoing commitment to help make the "American Dream" of home ownership a reality for first-time homebuyers who wish to reside in the Town of Babylon, Supervisor Rich Schaffer has announced that the Long Island Housing Partnership (LIHP), as agent for Town of Babylon, will be making applications available for first-time homebuyers for down payment/closing cost assistance towards the purchase of a principal residence.

The Town of Babylon will provide eligible first-time homebuyers with up to $14,000 towards down payment/closing costs towards the purchase of an eligible new or existing single-family home, provided that the applicant puts a minimum down payment of at least $3,000. The applicant must also be able to satisfy the mortgage lender's minimum down payment requirements and be able to secure a mortgage. Homeowners are required to reside in the home for a minimum of 5 years or HUD will require a full repayment of the grant.

Eligibility Criteria

An Applicant MUST be a:

I. First-Time Homebuyer - defined as a household that has not owned a home during the three year period immediately prior to the date of application for down payment assistance.

II. Household occupying the property as a Principal Residence.

III. Income Eligible Household - meaning a household must have a gross annual income not exceeding the income limits for the area as listed below with overtime assets also taken into consideration.

IV. Household must attend a mortgage counseling session at LIHP and must be able to secure a mortgage.

V. Household must have adequate resources and credit to qualify for a mortgage.

Income Guidelines

 Household Size  Maximum Total Annual Income Household Size  Maximum Total Annual Income 
 1  $59,450  5  $91,750
 2  $67,950  6  $98,550
 3  $76,450  7  $105,350
 4  $84,950  8  $112,150

Type of Housing Available

Homes purchased must be eligible pre-existing or newly-constructed residences located within the boundaries of the Town of Babylon. They must be single-family dwellings (includes townhouses, condominiums, co-operative apartments and manufactured homes) occupied as a principal residence.

Property Value Limit

The limit on the maximum purchase price of a single-family unit is $356,000. The property being purchased must appraise at the purchase price or higher. If the property appraises lower than the purchase price, down payment funds will not be available to purchase the home.

No Foreclosures, Short Sales, Bank-Owned or Real Estate-Owned Properties are permitted in the program.

Applications

Applications will be accepted on a first-come, first-served basis. Applications and program guidelines are available online at the Long Island Housing Partnership, Inc. website: www.lihp.org or by calling the Long Island Housing Partnership, Inc. at (631) 435-4710, or by visiting the LIHP's office at 180 Oser Avenue, Hauppauge, NY 11788 Monday-Friday between the hours of 9AM and 5PM.

Online applications are due by 5pm on July 29, 2016. Hard copy applications must be received at LIHP's office by 5pm on July 29, 2016 or be post marked by July 29, 2016.

Fair Housing Laws will be followed.