First-Time Home Ownership Program

What is First-Time Home Ownership Program?

First-Time Home Ownership Program is a deferred second loan for homebuyers in Lockport, New York.

• The City of Lockport's First-Time Home Ownership Program, administered by the Department of Community Development, provides up to $15,000 in down payment, closing cost, and minor rehabilitation assistance to income-qualified first-time buyers purchasing a 1-2 family primary residence within the City of Lockport. Funded by HUD HOME and CDBG, the assistance is structured as a 0% interest deferred forgivable second mortgage with pro-rata forgiveness over a 5-year affordability period.
• Up to $15,000 in down payment, closing cost, and minor rehabilitation assistance for income-qualified first-time buyers purchasing a primary residence within the City of Lockport. Funded with HUD HOME / CDBG.
• provided as a 0% interest deferred forgivable second mortgage over a 5-year affordability period.
• Funding comes from HOME, CDBG, Federal, and Local Government.

Do you have to pay it back?

First-Time Home Ownership Program 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?

First-Time Home Ownership Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

First-Time Home Ownership Program 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 Buffalo-Cheektowaga-Niagara MSA: 1-person ~$54,250 to 4-person ~$102,300 (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?

First-Time Home Ownership Program caps the purchase price at $314,000.

• Eligible property types include Single-family detached and 2-family owner-occupied.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

First-Time Home Ownership Program serves buyers purchasing in Lockport, New York.

How do you apply?

Applications for First-Time Home Ownership Program 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 NeighborWorks Buffalo / NeighborWorks WNY; Belmont Housing Resources for WNY (HUD-approved).

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Apply via City of Lockport Department of Community Development after executing purchase contract; 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.