Closing Cost Loan

Closing Cost Loan is a deferred second loan for homebuyers in Rochester, New York. The Closing Cost Loan, offered through The Enterprise Center at PathStone, provides up to $5,000 in closing cost assistance to income-qualified first-time buyers purchasing a 1-2 family primary residence in PathStone's service area (primarily Monroe County / Rochester and surrounding counties). The assistance is structured as a 0% interest deferred forgivable second-lien loan with pro-rata forgiveness over a 5-year affordability period. Buyers must complete PathStone HUD-approved homebuyer education and one-on-one counseling. Up to $5,000 in closing cost assistance for income-qualified first-time buyers purchasing a primary residence in PathStone's service area (Rochester / Monroe County and surrounding upstate NY counties). Provided as a 0% interest deferred forgivable second-lien loan over a 5-year affordability period. Funding comes from HOME, NYS HCR, NeighborWorks, Federal, and State.

Closing Cost Loan is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Pro-rata recapture of unforgiven balance if borrower sells, transfers, refinances with cash-out, rents, or vacates within 5 years. The assistance is recorded in 2 position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Closing Cost Loan is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time buyer required; standard HUD exceptions for displaced homemakers and single parents apply. On credit, the program states: No fixed minimum published; per first-mortgage product (typically 620+ conventional, 580+ FHA). A homebuyer education course is required, through The Enterprise Center at PathStone / PathStone Corporation (HUD-approved counseling agency); pre-purchase education and one-on-one counseling required. Residency requirement: Property must be located within PathStone's service area (primarily Monroe County / Rochester) and used as borrower's principal residence. Citizenship or immigration status: U.S. citizen or eligible non-citizen per HUD HOME and first-mortgage rules. First-time buyer required (no homeownership in past 3 years). Property must be a 1-2 family home located within PathStone's service area (primarily Monroe County and surrounding Rochester-area counties) and used as principal residence. Income generally between $85,500 (single-person) and $97,600 (4-person) at or below 80% AMI for Rochester MSA (HUD FY2025). Buyer must complete PathStone / Enterprise Center HUD-approved homebuyer education and one-on-one counseling. Property must pass HQS inspection. 0% interest deferred forgivable second-lien loan with pro-rata forgiveness over 5 years; due in full if borrower sells, transfers, refinances with cash-out, rents, or vacates within 5 years.

Closing Cost Loan limits household income to 80% of the area median income, which varies by county and household size. Household income at or below 80% HUD AMI for Rochester MSA: ~$85,500 (single-person 80% threshold band) to $97,600 (4-person 80% threshold) per program guidelines (HUD FY2025). The limit applies to total household income, not only the borrower’s. The program lists a maximum household size of 8. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Closing Cost Loan caps the purchase price as follows: Per HUD HOME 95% median-value rule for Rochester MSA. Eligible property types include Single-family detached, 2-family owner-occupied, and Condominium. New construction is eligible. Manufactured homes are not eligible.

Closing Cost Loan serves homebuyers purchasing in Rochester, New York.

Applications for Closing Cost Loan go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Apply via The Enterprise Center at PathStone after pre-purchase counseling completed and purchase contract executed; first-come, first-served subject to fund availability. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.