If you’ve found the perfect home, the Homebuyer Dream Program®  (HDP®)  or the Homebuyer Dream Program® Plus (HDP® Plus) can help make homeownership a reality. Northern Credit Union is proud to partner with the Federal Home Loan Bank of New York (FHLBNY) to provide grant assistance to qualified first-time home buyers. These programs provide grants up to $30,000 per household to be used towards down payment, closing cost assistance, and homebuyer counseling services for first-time homebuyers. Funds are distributed to homebuyers on a first-come, first-served basis.

Homebuyer Dream Program®/ Homebuyer Dream Program® Plus Eligibility requirements:

  • Qualify for Membership with Northern Credit Union.
  • Must be a first-time homebuyer.
  • Your household income must be at or below 120% of the Area Median Income.
  • Have a fully executed Purchase/Sales Contract.
  • Complete a Homeownership Counseling Course.
  • Contribute a minimum of $1,000 toward closing costs.

Click below to connect with one of our experienced lenders to start the pre-approval process today:

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Homebuyer Dream Program® FAQs

How does the Homebuyer Dream Program® work?

  1. Meet with a Northern Credit Union Home Lending Professional to confirm you qualify.
  2. Complete a qualifying Homeownership Counseling Course to receive your certificate.
  3. Your Home Lending Professional will then help you prepare a mortgage preapproval so you can find the home of your dreams.
  4. When you have an accepted purchase contract, your Northern Home Lending Professional will send the required documents to the Federal Home Loan Bank of NY, who will review your reservation request, purchase contract, income verification, and counseling certificate. If approved, a notification of funding commitment is sent.
  5. Once you have received your funding commitment, you will have 120 days to close on your new home!

What are the requirements to qualify for the grant?

  • Qualify for Membership with Northern Credit Union.
  • Must meet the minimum requirements to qualify for a mortgage with Northern Credit Union.
  • Must be a first-time homebuyer.
  • Must be purchasing an owner-occupied primary residence.
  • For HDP®, your household income must be at or below 80% of the Area Median Income. For HDP® Plus, your annual income can be greater than 80% of the Area Median Income, but must not exceed 120% of the Area Median Income. To find out more about your Area Median Income, contact a Northern Credit Union Home Lending Professional.
  • Have a fully executed Purchase/Sales Contract.
  • Complete a Homeownership Counseling Course.
  • Contribute a minimum of $1000 toward closing costs.
  • Must own the home for 5 years (HDP® only).

What is a first-time homebuyer?

An individual or spouse who has had no ownership in a principal residence during the 3-year period ending on the date of the purchase of the property.

What is the Area Medium Income for my area?

Connect with a Home Lending Professional to learn more.

Where can I find a qualifying Homeownership Counseling Course?

A counseling agency that is accredited by U.S. Department of Housing and Urban Development (HUD), a State Government or State Housing Finance Agency (HFA), or the National Industry Standards for Homeownership Education and Counseling. For more information, please refer to the following resources:

What can the grant money, up to $30,000, be used for?

The HDP grant must be used toward the down payment and/or closing costs for the purchase of a household’s principal residence. Acceptable closing costs include but are not limited to:

  • Loan origination and/or discount fee
  • Rate buy down
  • Appraisal and/or application fee
  • Credit report
  • Flood certification
  • Closing fee
  • Document preparation
  • Attorney fees
  • Title insurance and title fees
  • Abstracting fees
  • Housing counseling fee
  • Recording fees and tax stamps
  • Survey fees
  • Prepaid interest
  • Escrow of property taxes, homeowner’s insurance, mortgage insurance, and flood insurance
  • Property inspection fees
  • Realtor commissions

The HDP grant may be used in conjunction with other grant programs, including other grant programs offered by the FHLBNY. The combined FHLBNY grant amounts are limited to a maximum of $60,000 per household and property.

Which mortgage options are available to use with the HDP®?

Our Fixed Rate Mortgage and Adjustable Rate Mortgage can be used with this grant. Seasonal Home Mortgages, New Construction Mortgages, Rehab Mortgages, Equity Advantage, and No Closing Cost mortgages are not eligible for the program.