CDLI Down Payment and Closing Cost Assistance Loan

What is CDLI Down Payment and Closing Cost Assistance Loan?

CDLI Down Payment and Closing Cost Assistance Loan is a repayable second loan for homebuyers in Nassau; Suffolk County, New York, administered by Community Development Long Island (CDLI) / CDLI Funding Corporation.

• A fixed low-interest-rate second loan for down payment and closing cost assistance, available to first-time homebuyers in Nassau and Suffolk Counties whose income is no greater than 120% AMI, primarily to help borrowers reach 20% down and avoid PMI. Loan amount up to $75,000; rate (4.0%/4.25%/4.5%) set by loan size. Combined LTV may not exceed 105%. Administered by CDLI Funding Corporation, a nonprofit CDFI.
• Up to $75,000 low-interest second loan.
• Helps avoid PMI.
• Combine with own funds for up to 20% down.
• Funding comes from CDLI Funding Corporation (nonprofit CDFI / exempt mortgage banker).

How much assistance does it provide?

CDLI Down Payment and Closing Cost Assistance Loan offers up to $75,000 in assistance.

• Award tiers: Interest rate set by loan size: 4.0%, 4.25%, or 4.5% fixed.
• Buyer contribution: Funds combined with borrower's own funds toward up to 20% to avoid PMI.
• The program can be combined with Borrower's own funds and other grant funds (documentation required).
• Amounts are the program's published maximums, not an offer — Community Development Long Island (CDLI) / CDLI Funding Corporation determines any individual award.

Do you have to pay it back?

CDLI Down Payment and Closing Cost Assistance Loan is a repayable second loan and is repaid under the terms set by Community Development Long Island (CDLI) / CDLI Funding Corporation.

• Repayment is triggered by Amortizing/repayable second loan; term cannot exceed term of first mortgage.
• The assistance is recorded in second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

CDLI Down Payment and Closing Cost Assistance Loan is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

CDLI Down Payment and Closing Cost Assistance Loan limits household income to 120% of the area median income, which varies by county and household size.

• Household income no greater than 120% of HUD area median income based on family size; income of all household members counted.
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

CDLI Down Payment and Closing Cost Assistance Loan caps the purchase price at $500,000.

• Eligible property types include Single Family, 2-4 Unit, Condo, and Co-op.

Where does it apply?

CDLI Down Payment and Closing Cost Assistance Loan serves buyers purchasing in Nassau; Suffolk County, New York.

How do you apply?

Applications for CDLI Down Payment and Closing Cost Assistance Loan go through Community Development Long Island (CDLI) / CDLI Funding Corporation, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through CDLI NeighborWorks HomeOwnership Center Home Buyer Education Program.

2. 2

   Contact Community Development Long Island (CDLI) / CDLI Funding Corporation to reserve funds

   Funds are reserved through Application via Cognito Forms; subject to underwriting and funding availability, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.