Public Employee Press

Eligibility expanded for housing grants

Out-of-town retirees can now refinance

By DIANE S. WILLIAMS

Higher income limits for HomeFirst grants now enable DC 37’s Municipal Employees Housing Program to offer down payment assistance to more first-time homebuyers who work for the city. And for the first time, MEHP is helping to refinance mortgages for DC 37 retirees facing foreclosure in Florida and other states.

“We want our members to know that even in these difficult economic times, their union is making it easier to get a home mortgage,” said Henry Garrido, DC 37 assistant to the associate director, who runs the union’s affordable housing program.

To reach more potential homebuyers, the HomeFirst Down Payment Assistance Program raised its income maximums effective Feb. 13 to make money available to more working people. HomeFirst grants are now available to single people who earn as much as $43,000; a family of four can earn up to $61,450 and a family of eight up to $81,100, and still qualify for a grant. HomeFirst provides grants of up to 6 percent of the purchase price for a down payment or for closing costs on a one- to four-family home, condominium or co-op apartment in the five boroughs. (See the chart below for maximum household incomes.)

HomeFirst grants are forgivable loans that do not have to be repaid; the buyer must reside in the purchased home for 10 years. These grants are part of the mayor’s housing initiative provided through the Dept. of Housing Preservation andDevelopment.

DC 37 retirees who no longer live in New York City now can refinance their homes through MEHP. This feature is helpful for retirees who face foreclosure, or have a subprime or adjustable-rate mortgage and want to secure a fixed-interest rate mortgage.

“As long as the banks that participate in our program are licensed to operate in the state where the retiree’s home is, we can do it,” said Garrido. MEHP will evaluate each retiree’s case individually. The closing takes place in the home state, eliminating the need for those who live elsewhere to travel to the union to sign the paperwork. Borrowers living outside New York City will need to hire a lawyer for the transaction; retirees in Florida can call the Retirees Association for assistance in this matter.

Although banks are offering lower interest rates, because of the national foreclosure crisis they are imposing stricter lending requirements. “It is still possible for potential first-time buyers who are employed and have FICO scores above 625 to buy homes in New York City,” said Garrido.
Mortgage lenders are using stricter guidelines and income minimums that require buyers to carry primary mortgage insurance when the down payment is under 20 percent of the purchase price.

“Because of these stricter requirements, anyone with a FICO credit score of 580 or below will not qualify for PMI,” Garrido explained. “People with scores between 580 and 620, will have to meet significant requirements, including larger down payments. People with scores of 680 and above will be able to get PMI without restrictions.”

To help DC 37 members repair their credit and raise their FICO scores, the union’s Municipal Employees Legal Service and MEHP will offer free credit counseling courses. For more information, please call MEHP at 212-815-1814.