City of Schenectady H.O.M.E.S. Second Mortgage Program

What is City of Schenectady H.O.M.E.S. Second Mortgage Program?

City of Schenectady H.O.M.E.S. Second Mortgage Program is a repayable second loan for homebuyers in Schenectady, New York, administered by City of Schenectady Department of Development / Schenectady Housing Development Fund Corporation (SHDFC).

• The City of Schenectady H.O.M.E.S. (Home Ownership Made Easy in Schenectady) Second Mortgage Program provides first-time homebuyers purchasing within the City of Schenectady with up to $10,000 (10% of purchase price) in down payment and closing cost assistance as a second mortgage. The loan carries a 4% interest rate with a 5-year term; after 5 years of owner occupancy, 75% of the assistance is converted to a grant and forgiven, with the remaining 25% repaid through the amortization schedule. The property must be move-in ready and pass a Certificate of Occupancy inspection. This program is administered directly by the City Development Department/SHDFC and is distinct from the separately administered BCNI Homebuyers Assistant Program.
• Up to $10,000 DPA and closing cost assistance.
• 75% forgiven after 5 years of occupancy.
• City-administered.
• Stackable with HDP, SONYMA and other programs.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from City of Schenectady (HUD CDBG and/or HOME funded); administered through SHDFC.

How much assistance does it provide?

City of Schenectady H.O.M.E.S. Second Mortgage Program offers up to $10,000 in assistance.

• Buyer contribution: Buyer must have mortgage commitment for at least 90% of purchase price.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — City of Schenectady Department of Development / Schenectady Housing Development Fund Corporation (SHDFC) determines any individual award.

Do you have to pay it back?

City of Schenectady H.O.M.E.S. Second Mortgage Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by 75% of assistance converted to grant after 5 years of owner occupancy; remaining 25% repaid via 5-year amortization if buyer leaves before 5 years.
• 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?

City of Schenectady H.O.M.E.S. Second Mortgage Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

City of Schenectady H.O.M.E.S. Second Mortgage Program limits household income to 80% of the area median income, which varies by county and household size.

• HUD 80% Area Median Income limits for Schenectady County: 1-person $46,550; 2-person $53,200; 3-person $59,850; 4-person $66,500; 5-person $71,850; 6-person $77,150.
• 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?

City of Schenectady H.O.M.E.S. Second Mortgage Program caps the purchase price as follows: Property must be move-in ready and pass Certificate of Occupancy inspection; must be in standard condition.

• Eligible property types include Single Family and 2-4 Unit.
• New construction is not eligible.
• Manufactured homes are not eligible.

Where does it apply?

City of Schenectady H.O.M.E.S. Second Mortgage Program is a federal program, so it is not limited to New York.

How do you apply?

Applications for City of Schenectady H.O.M.E.S. Second Mortgage Program go through City of Schenectady Department of Development / Schenectady Housing Development Fund Corporation (SHDFC), 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 Better Community Neighborhoods, Inc. (BCNI) HUD-certified housing counseling agency.

2. 2

   Contact City of Schenectady Department of Development / Schenectady Housing Development Fund Corporation (SHDFC) to reserve funds

   Funds are reserved through Contact City of Schenectady Development Department directly, 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.