First Home Club^SM Fact Sheet

What is the First Home Club?
The First Home ClubSM is a program financed by the Federal Home Loan Bank of New York (FHLBNY) to assist individuals and families in earning a grant up to $7,500 toward down payment and closing costs associated with a first home purchase. Assistance may be granted to the participant who successfully establishes a dedicated savings account at any participating bank and makes regular deposits into the account during a 10 to 24-month period.

How does it work?
The Federal Home Loan Bank of New York will provide four dollars in matching funds for every dollar saved in a dedicated savings account to qualified first-time homebuyers. Participants are required to make systematic monthly or bi-weekly deposits and attend a homebuyers counseling class. At the time of enrollment, a savings plan, the amount of money that will be saved monthly, and the duration of the plan will be determined.

How do I qualify?

• First-time homebuyers whose household income does not exceed 80% of the area median income for their current residence, adjusted by household size qualify. The income limits must meet the Mortgage Revenue Bond Median Income Guidelines as of 2007 for New York State. Guidelines for Monroe & Ontario Counties:
  • 1 & 2 person households @ 80% or less of the area median income for the area cannot exceed $52,240
  • 3+ Person Households @ 80% or less of the area median income for the area cannot exceed $60,076
• "First-time homebuyer" means an individual and his or her spouse who has not owned a home within the last 3 years.

How do I sign up?
Attend a NeighborWorks of Rochester¹ Home ownership meeting or contact the CNB Mortgage Company² to determine your household's eligibility and learn the steps of how to participate in the First Home Club^SM program.

Is there a catch?

• In order to receive the matching grant funds the participant must adhere to the established savings schedule. The participant must remain in the house for at least five years; if the home is sold before the five years are up, the participant will be required to repay a portion of the grant funds back to the Federal Home Loan Bank of New York.
• The participant must obtain a mortgage through the bank in which they complete their savings plan. Approximately one or two months before the end of the savings plan, the participant must qualify for a mortgage before grant funds will be awarded. Maintaining the First Home Club^SM savings account does not guarantee a mortgage approval.

What if I sign up and do not complete the savings plan?

• If the participant does not complete the savings program, they will not be eligible to receive the matching grant funds.
• If the participant does not complete the savings program, but wishes to continue in the program, the participant has the option to start over and re-enroll.
• If the participant starts the savings plan and experiences financial difficulties, the participant will not automatically become ineligible. The participant should contact NeighborWorks or CNB Mortgage Company for assistance in meeting financial challenges related to the savings plan.