Closing Cost Loan

What is 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.

Do you have to pay it back?

Closing Cost Loan is forgiven after 5 years, so a buyer 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.

Who qualifies?

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

What are the income limits?

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.

What kind of home can it be used for?

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.

Where does it apply?

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

How do you apply?

Applications for Closing Cost Loan go through the administering agency, 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 The Enterprise Center at PathStone / PathStone Corporation (HUD-approved counseling agency); pre-purchase education and one-on-one counseling required..

2. 2

   Contact the administering agency to reserve funds

   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., 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.