The Town of Babylon will provide eligible first time homebuyers with up to $25,000 towards down payment/closing costs towards the purchase of an eligible new or existing single-family home. The applicant must put a minimum of at least $3,000 towards down payment/ closing costs, the source of this cannot be a loan. The applicant must also be able to satisfy the mortgage lender’s minimum down payment requirements and be able to secure a mortgage. Homeowners are required to reside in the home for a minimum of 5 years or HUD will require a full repayment of the grant. The home must meet and pass Town of Babylon property standards and building code prior to purchase. Homes purchased within a flood zone must have flood insurance.
Eligibility Criteria: To qualify for the program, an applicant MUST meet all the following criteria: I.First Time Homeowner - as defined by HUD is a household that has not owned a home during the three year period immediately prior to the date of application for assistance. II.Purchased home must be occupied by the homeowner and be their principal residence. Family who attend a mortgage counseling session at LIHP and must be able to secure a mortgage and have an acceptable credit history. III.Family must have a minimum income of at least $30,000. Income Eligible Family - meaning a prospective buyer must have a gross annual income not exceeding the income limits for the area as listed below with overtime and assets also taken into consideration.
HUD established Income Guidelines: Eligible participants must have annual incomes at or below 80 percent of the median income for the Nassau- Suffolk area adjusted for family size as established by HUD.
Family Size / Maximum Income*
1 / $72,500
2 / $83,150
3 / $93,550
4 / $103,900
5 / $112,250
6 / $120.550
7 / $128,850
8 or more / $137,150
*Income limits subject to change pursuant to HUD requirements.
Type of Housing Available: Homes purchased must be eligible pre-existing or newly constructed residences located within the boundaries of Town of Babylon. They must be single-family dwellings (includes townhouses, condominiums, co-operative apartments and manufactured homes) occupied as a principal residence.
Property Value Limit: For FY 2021, Maximum Appraised Value cannot exceed $428,000 for an existing home and $465,000 for a newly constructed home.
No Foreclosures, Short Sales, Bank Owned or Real Estate Owned properties are permitted in the program.
Applicant Intake Forms: Available only by calling LIHP. Intake forms will be mailed to interested homebuyers.
Long Island Housing Partnership, Inc. (as Agent for Town of Babylon) 180 Oser Avenue, Suite 800 Hauppauge, NY 11788 Telephone #: (631) 435-4710