What is the
Homebuyer Dream Program® Suite?
A suite of three products targeted to first-time homebuyers with a specific household income level or population of first-time homebuyers. WSB is allotted grant funds to help cover down payment, closing costs, and homebuyer counseling services for eligible homebuyers who meet certain income and additional criteria as defined by each of the programs’ parameters.
The program round opens February 10, 2025 and funds are limited.
How to Get Started
- Speak with a WSB Mortgage Originator to discuss eligibility requirements and obtain a prequalification.
- Complete the homeownership counseling course to receive your Certificate (within 18 months prior to the reservation request date).*
- Provide a fully executed Purchase and Sales contract on a home and complete your Loan Application with your WSB Mortgage Originator.
- FHLBNY will review the grant reservation request.
- Once approved, FHLBNY will send a funding commitment at which time you have 120 days to close on your new home!
*Housing Counseling Services Online Course is available online: HERE
The program is open now and our team is available to answer your questions. Contact our team today!
Disclaimer
The FHLBNY and WSB reserve the right to change the terms and conditions at any time, without prior notice. The funds are limited and are available on a first-come, first-served basis and even if the customer meets all of the terms and conditions this does not guarantee that there may be funds available at the time that they qualify.
Homebuyer Dream Program® (“HDP®”)
The Homebuyer Dream Program® (“HDP®”) is a federally regulated first-time Homeownership Set-Aside Program, offered under the FHLBNY’s Affordable Housing Program (“AHP”) and managed within regulatory requirements established by the Federal Housing Finance Agency (“FHFA”) 12 C.F.R. Part 1291, as may be amended from time to time (“AHP Regulation”). HDP provides funds in the form of a grant to be used towards down payment and closing cost assistance to first-time homebuyers earning at or below 80% of the Area Median Income (“AMI”).
The maximum grant that a household may receive is up to $30,000, as determined by the member, and submitted to the FHLBNY.
Homebuyer Dream Program® Plus (“HDP® Plus”)
Homebuyer Dream Program® Plus (“HDP® Plus”) is voluntary program that gives member banks the opportunity to provide grant funds to households earning greater than 80%of the Area Median Income (AMI). The maximum grant amount of up to $30,000 will be utilized towards down payment and closing cost assistance.
Participating members may offer HDP Plus to households that meet the following income thresholds:
- New York and New Jersey: Earning over 80% AMI, but not to exceed 120% AMI
- Puerto Rico and U.S. Virgin Islands: Earning over 80% AMI, but not to exceed 150% AMI
HDP Plus may only be administered within the FHLBNY District.
Homebuyer Dream Program® Wealth Builder (“HDP® Wealth Builder”)
Homebuyer Dream Program® Wealth Builder (“HDP® Wealth Builder”) is a Special Purpose Credit Program (SPCP) designed to address the wealth gap by providing grants to individuals and families who have historically experienced challenges accessing the credit or housing markets. Grant recipients must currently reside within, and purchase an eligible property type within, the FHLBNY District.
The maximum grant amount of up to $30,000 must be utilized towards down payment and closing cost assistance and participating members may offer HDP Wealth Builder to households that meet the following income thresholds:
- New York and New Jersey: Earning income equal to or less than 120% of the AMI
- Puerto Rico and U.S. Virgin Islands: Earning income equal to or less than 150% of the AMI
Eligible households must also meet one of the following eligibility criteria:
- Reside within a majority-minority census tract or
- Qualify as first-generation homebuyers
This grant may be layered with one of the other two!
Eligibility Requirements
You must meet the following requirements prior to WSB requesting a grant reservation:
- Meet the definition of a “first-time home buyer”**
- Meet income requirements of Area Medium Income (AMI) for the county in which the home is being purchased adjusted for household size ***
**First-time homebuyer as defined by the U.S. Department of Housing and Urban Development (“HUD”), is an individual who meets any of the following criteria:
- An individual who has had no ownership in a principal residence during the 3-year period ending on the date of the purchase of the property. This includes a spouse (if meets the above test, they are considered first-time homebuyers).
- A single parent who has only owned a principal residence with a former spouse while married.
- Individual who is a displaced homemaker and has only owned a principal residence with a spouse.
- An individual who has only owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations.
- An individual who has only owned a property that was not in compliance with state, local or model building codes and could not be brought into compliance for less than the cost of constructing a permanent structure.
*** Area Medium Income
| 1 & 2 Person Households | 1 & 2 Person Households | 3+ Person Households | 3+ Person Households | |
| Min. Allowable Income |
Max. Allowable Income |
Min. Allowable Income |
Max. Allowable Income |
|
| Orange or Dutchess County | $95,200.01 | $142,800.00 | $109,480.01 | $164,220.00 |
| Ulster or Sullivan County | $82,960.01 | $124,440.00 | $95,404.01 | $143,106.00 |
Household must meet the program’s income requirements of the Area Median Income (“AMI”) for the county in which the household is purchasing, adjusted for household size, as determined under 26 U.S.C. 143(f), Mortgage Revenues Bonds, as published by a State agency or instrumentality for New York, New Jersey and Puerto Rico. For all other states and U.S. territories, including the U.S. Virgin Islands, the area median income, as published annually by HUD, is used. The income requirements for each program are as follows:
- Homebuyer Dream Program
- 80% AMI or less
- Homebuyer Dream Program Plus
- New York and New Jersey: earning over 80% AMI, but not to exceed 120% AMI
- Puerto Rico and U.S. Virgin Islands: earning over 80% AMI, but not to exceed 150% AMI
- Homebuyer Dream Program Wealth Builder
- New York and New Jersey: 120% AMI or less
- Puerto Rico and U.S. Virgin Islands: 150% AMI or less
Household size is based upon the number of people who will reside in the home being purchased.
Divorced or separated homebuyer(s) who have joint custody of their children should include the children in their household count, regardless of the amount of custody time.
Non-occupying co-signers, non-occupying co-borrowers, or guarantors are not to be included in household size.
Household must adhere to the income and underwriting standards of the FHLBNY as described in the Household Income section within this document.
Household must purchase an eligible property type in the geographic area specified by the program:
- Homebuyer Dream Program - Any US state or Territory
- Homebuyer Dream Program Plus - FHLBNY District: New York, New Jersey, Puerto Rico, and U.S. Virgin Islands
- Homebuyer Dream Program Wealth Builder - FHLBNY District: New York, New Jersey, Puerto Rico, and U.S. Virgin Islands
- - Eligible properties include 1-4 family dwellings, townhouses, condominiums, cooperative housing units or manufactured housing (must be affixed to a permanent foundation) to be used as the household’s primary residence.
- - In the case of new construction, construction must be completed prior to closing, and member must ensure issuance of a Certificate of Occupancy.
- - Ineligible properties include investment properties, vacation homes, and vacant land.
Homebuyer(s) current residency must align with the requirements of the applicable program:
- Homebuyer Dream Program
- Any US state or Territory
- Homebuyer Dream Program Plus
- Any US state or Territory
- Homebuyer Dream Program Wealth Builder
- FHLBNY District: New York, New Jersey, Puerto Rico, and U.S. Virgin Islands
Homebuyer(s) must have a fully executed Purchase and Sales Contract dated prior to the reservation request date.
Homebuyer(s) must complete a homeownership counseling program as further defined in the Homeownership Counseling section.
Homebuyer(s) must provide a minimum equity contribution of $1,000 toward the purchase of the home as described in the Household Equity Contribution section within this document.
For HDP only, homebuyer(s) must agree to sign, at time of closing, a 5-year deed restriction or other legally enforceable retention agreement or mechanism (“Retention Agreement”), with the member in the amount of the total HDP grant, which requires (i) notice to the FHLBNY, and in its discretion any designee of the FHLBNY, notice of any sale, transfer, assignment of title or deed, or refinancing of the unit by the household occurring during the AHP five (5) year retention period; and (ii) repayment of a portion of the subsidy unless the transfer is subject to repayment exception of the AHP Regulations.
Household closing and reimbursement of funds to the member must occur within the 120-day commitment period. Households that have closed before the issuance of a commitment are not acceptable.
Obtain mortgage financing from the participating member, or a wholly owned subsidiary, or the federal government, or an instrumentality thereof, for the purchase of a primary residence.
Member’s first mortgage financing does not exceed the annual percentage rate, points and fees, or prepayment penalty thresholds of the Home Ownership and Equity Protection Act of 1994 and its implementing regulation (Federal Board Regulation Z), and that the first mortgage loan does not violate any Anti-Predatory Lending Laws.
The member must comply with the underwriting standards of the FHLBNY, including but not limited to:
- Maximum original Loan to Value (“LTV”) of 97% for conventional financing and mortgages insured by the Federal Housing Administration (“FHA”).
- Loans guaranteed by the Veterans Administration (“VA”) are limited to 100% and LTV is calculated using the base mortgage amount.
- Loans guaranteed by the United States Department of Agriculture (“USDA”) 502 Direct and Guaranteed Loan Programs are limited to 100% LTV.
- Total Debt to Income Ratio greater than 45% requires the member provide an explanation of household affordability on the Homebuyer Dream Program Round Request Form.
- The term of the first mortgage financing cannot be less than 5 years.
Note: Loan to Value (LTV) is defined as the original loan amount divided by the property value. The property value is the lower of the sales price or the current appraised value.
For Homebuyer Dream Program Wealth Builder, at least one of the homebuyers must meet the following eligibility criteria:
- The homebuyer currently resides in a majority minority census tract; or
- The homebuyer is a first-generation homebuyer as defined by one of the following
- the homebuyer aged out of foster care; or
- the homebuyer’s parents do not currently own or have ever owned property in the United States.
