Town of Babylon HOME Down Payment Assistance Program

Town of Babylon HOME Down Payment Assistance Program is a deferred second loan for homebuyers in Babylon, New York, administered by Long Island Housing Partnership, Inc. (LIHP), as agent for the Town of Babylon Community Development. The Town of Babylon HOME Down Payment Assistance Program, administered by the Long Island Housing Partnership, provides eligible first-time homebuyers up to $50,000 toward down payment and closing costs for an owner-occupied single-family home within the Town of Babylon. The assistance is a 0% deferred HOME loan, secured by a Note & Mortgage subordinate to the prime lender, forgiven after a 10-year affordability period and repaid in full if the owner sells, transfers, or stops occupying the home during that period. Can be paired with a NYS AHC grant of up to $40,000. Up to $50,000 0% deferred loan forgiven after 10 years. Stackable with up to $40,000 NYS AHC down payment/rehab assistance. Funding comes from HUD HOME Investment Partnerships Program (Town of Babylon).

Town of Babylon HOME Down Payment Assistance Program offers up to $50,000 in assistance. Homebuyer contribution: At least $3,000 in verifiable liquid assets at application AND at least 3% of purchase price down from own funds. No seller concessions. The program can be combined with NYS AHC grant (up to $40,000: $15,000 DP + $23,000 rehab + $2,000 fee), forgivable after 10 years, for non-new-construction homes needing rehab. Amounts are the program's published maximums, not an offer — Long Island Housing Partnership, Inc. (LIHP), as agent for the Town of Babylon Community Development determines any individual award.

Town of Babylon HOME Down Payment Assistance Program is forgiven after 10 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by 0% deferred loan forgiven after 10 years; full recapture if owner sells, transfers, ceases primary occupancy, or rents during the 10-year period. The assistance is recorded in Subordinate (second), subordinate to the prime lender position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Town of Babylon HOME Down Payment Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: May own vacant land or a vacation timeshare if no mortgage-interest/property-tax deductions in the prior 3 years. On credit, the program states: Middle credit score of all borrowers must be at least 580. Good 12-month payment history; no outstanding collections/judgments; bankruptcy discharged 3+ years; foreclosure 3-5+ years old. A homebuyer education course is required, through Long Island Housing Partnership (HUD-certified); free ~2-hour pre-purchase counseling required. Residency requirement: Home within the Town of Babylon (Amityville, North Amityville, Babylon, Copiague, Deer Park, Lindenhurst, North Babylon, West Babylon, Wheatley Heights, Wyandanch, East Farmingdale); principal residence for the 10-year period. Citizenship or immigration status: Each applicant must be a U.S. Citizen or a Qualified Alien (8 USC 1641). Recurring annual program; 2026 application round closes May 26, 2026 (between rounds at present). $35 application fee; LIHP counseling; HQS inspection; no seller concessions; fixed-rate 30-year first mortgage capped at SONYMA ATD rate + 2 points; 2-year employment and U.S. citizen/qualified-alien requirement.

Town of Babylon HOME Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size. Maximum gross annual household income (2026, size 1-8): $92,350 / $105,550 / $118,750 / $131,900 / $142,500 / $153,050 / $163,600 / $174,150. 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.

Town of Babylon HOME Down Payment Assistance Program caps the purchase price at $599,000. Eligible property types include Single Family, Townhouse, Condo, Co-op, and Manufactured. New construction is eligible. Manufactured homes are eligible.

Town of Babylon HOME Down Payment Assistance Program serves homebuyers purchasing in Babylon, New York. The program targets specific areas: Town of Babylon hamlets/villages: Amityville, North Amityville, Babylon, Copiague, Deer Park, Lindenhurst, North Babylon, West Babylon, Wheatley Heights, Wyandanch, East Farmingdale.

Applications for Town of Babylon HOME Down Payment Assistance Program go through Long Island Housing Partnership, Inc. (LIHP), as agent for the Town of Babylon Community Development, which publishes the current terms and the application steps on its own site. Funds are reserved through First-come, first-served; Purchaser Certificates issued until 75 eligible applicants or deadline (May 26, 2026 for 2026 round). 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.