Upstate New Yorkers, free money.. Anyone go through the First Time Home Buyers Club?

Question

James J. · Answer

I'm currently enrolled in the process right now, just about a month less in the program before I can settle on a house.

Overall, I think it's a good program. That is, if you intend to get financing from a bank, looking to buy in a year or two out, and intend to live on the property for at least 5 years. If you're not making a ton of cash now, you're probably eligible.

Quickest example and explanation: If you can show the bank you can save $188 dollars, diligently deposit that once every month for a minimum of 10 months, they will put up to $7500 towards your down payment of the house you intend to buy and live in. It's $4 for every $1 you put in. 188*10=1880*4=7520. This includes multifamily homes (1-4 units only).

Things to consider:

- The $7500 is a lien on your property. If you were to sell after 3 years from when you bought the house, you will owe the prorated amount left so you would pay the remaining 2 years ($3000)

- You will need to take a 1 time 6-8 hour first time home buyers club class. It's $30 well spent if you're a beginner. They'll give you a certificate of completing it which you show to your bank and a big booklet at the end of the course on one you learned.

- From what I heard from an agent friend, you don't need to finance with the bank you started the program with. So he suggested not to hesitate to get the best rate around.

- If you quit the program, you keep your money from the bank. Do whatever you want with it.

- If you can't buy the house for the traditional time period 10 - 24 months you can request more time to "think about it" for at least another year, maybe more.

Some resources:

https://www.firstniagara.com/Borrow/Personal/Mortgages/Home_Buying/First_Home_Club/First_Home_Club.aspx - very in depth, pretty much says it all, you can check your eligibility too

Aside: Not sure if I should have revived this old thread or not but I didn't see much information about it on BP so couldn't see it hurting.

Louis Aller · Answer

I'm in Albany NY, and I too am looking into the program. Surely there is a catch though because it seems like they're just giving away 7500 dollars to me?

Greg B. · Answer

I think they play with your money on purpose. I have my Club account with my credit union on auto transfer, 2 out of the 3 months I had to transfer manually. But who knows.

10 months is a long time. Especially for a person with my lack of patience. But it is forcing me to learn all I can before I enter the world of land lording again. I need this first property to be my first investment. I don't see the point of buying a SFR waiting to pay down the mortgage. Plus, you can't beat the $4:$1 ratio they're giving.

The one thing I worry about is the number of hoops I'm going to have to jump through before my funding is approved and I have a closing date, or if certain properties meet there "criteria". But we'll see.

Get back in the Club, it can't hurt

Account Closed · Answer

I regret it now, and I am thinking of doing it again (10 months is a long time I feel!) but I enrolled with HSBC last year. Well the 1st month in HSBC was bought out my Key Bank and First Niagra. The banker/mortgage person was well aware of this and said once the bank switches over, my account will too and my payments will still automatically go to the new account. Well month 4 rolls around and I decided to check my account. No new money had been deposited (I should have checked it earlier I know, but I trusted the bank: Life lesson #384... Don't trust the bank haha).Well I contacted the bank and was like WTF and come to find out whoever was in charge of my account never transfered my account over (by this time in 6Months in)... End of it all I had to start the whole process over (paper work and all) and I said forget it! And havn't done anything with it sence. Kinda long story, but there it is. Haha

Greg B. · Answer

@Tiffany T.

I'm going through it currently, 3rd month out of 10. I plan on purchasing an owner occupied multi-family when I complete the program. Why did you pull out????