A lot of people who grew up in Yonkers want to stay. They went to school here. Their families are here. But buying a first home can feel out of reach.
Here is the news. Mayor Mike Spano just launched a new City program to help first-time buyers with the down payment. He kicked it off at City Hall on Oct. 19 with Westchester Residential Opportunities, the program's partner. The program's website sums up the goal in its headline: "Your first home. Your future in Yonkers."
The official name is a mouthful: the City of Yonkers First-Time Home Buyer Down Payment Assistance Program. It lives at owninyonkers.com, in English and Spanish.
Up to 19% of the Price, Forgiven After 5 Years
A down payment is the cash you pay up front when you buy a home. A mortgage covers the rest. For a lot of first-time buyers, saving it up is one of the hardest parts.
This program can cover up to 19% of the purchase price toward that down payment. It comes as a loan with 0% interest and no monthly payments. Live in the home for five years and follow the rules, and the loan is forgiven. That means you never pay it back.
The fine print is worth knowing. The loan is recorded against the house as a second loan behind your mortgage. Sell the house or hand it to someone else inside those five years, and you may have to repay it. The exact amount is set during underwriting, which is a close check of your finances. It also depends on how much money is left. And it does not cover closing costs, so plan for those on your own.
The Mayor first announced the program at his State of the City in March. He said the money comes from federal HOME funds and the City's own Housing Trust Fund.
And Your Parents' Address Counts Too
You need one tie to Yonkers, and there are three ways to have it. You've lived here for at least the past 12 months. Or a parent who lives here now has been here at least the past 12 months. Or you own and run a business based in Yonkers.
That middle option is worth knowing. Even if you moved away, your mom or dad's address can still be your Yonkers tie.
You also have to be a first-time buyer, and your household income has to be under the limit. The limit is 120% of the area's median income. For one person, that's $142,450 a year. For a family of four, it's $203,550. The full chart is on the program's website.
But Get Approved Before You Sign
This is the step to get right. You must get program approval before you sign a contract to buy a house. The order matters.
Here is what else you need. A lender's OK on your home loan. At least 1% of the price from your own savings. And homebuyer classes and one-on-one counseling from an agency approved by HUD, the federal housing department, with a certificate to prove you finished.
WRO handles that part. That's Westchester Residential Opportunities, a HUD-approved counseling agency. It helps you with the application and walks you through to closing. The City checks who qualifies and approves the money.
Once you're approved, the clock starts. You get 90 days to find a home in Yonkers. Single-family houses, condos and co-op apartments can all qualify. The home has to be where you live. And the purchase can't push out a tenant who already lives there.
So Your First Step Is Nov. 9
The first step is an info session. The in-person one is Monday, Nov. 9, in the Community Room at Riverfront Library. English runs 5:30 to 6:30 p.m. Spanish runs 6:30 to 7:30 p.m.
Can't get there? An online session runs Thursday, Nov. 12, at the same times. You sign up for either one on the program's website.
Two heads ups. The application opens after the Nov. 9 session, so this is the time to learn the rules. And the info session does not count as your counseling.
The Mayor's letter on the program site says it plainly: "We want to help more people who have a connection to Yonkers make that purchase here in our City."
So send this to someone who grew up here and wants to stay. Then get the details at owninyonkers.com.
Follow @TheYonkersCollective on Instagram for more Yonkers stories. And for the best of the whole 914, read Not Upstate Magazine at thenineonefour.com.
Want more stories like this?
Sign up free for the Not Upstate Digital Magazine, a new issue every two weeks on the people, places, and culture of Westchester and the Hudson Valley.