Department of Planning and Development

First-Time Homebuyer HOME Program

Mission Statement

The Lakewood HOME Program provides one of the best mortgage financing packages available to qualified first time home buyers interested in purchasing a Lakewood home. Assistance, which comes in the form of a 0% interest, no monthly payment second mortgage is used to assist with both down payment and closing costs.

The Lakewood First-Time Homebuyer HOME Program Offers:

1. deferred payment, zero percent (0%) interest second mortgage
   • $10,000 for single-family property, or
   • $14,000 for two-family property with forgiveness schedule.

   Loan to be repaid immediately at time of resale, transfer, or if property becomes absentee-owned. Purchasers of two family properties are eligible for loan forgiveness. Fifty percent (50%) will be forgiven after the fifth year of owning and occupying the property and twenty percent (20%) each year thereafter until one hundred percent (100%) forgiven.

2. Pre-purchase counseling program to help homebuyers become more informed homeowners.
3. Homebuyers can be pre-qualified by participating lending institutions to determine their maximum purchasing ability.

Eligible Homebuyers

• Homebuyer(s) must either be a displaced homemaker, single parent, or a person who has not owned a home for 3 years.
• Homebuyer(s) must provide a minimum of 1.5% of the sale price from personal funds.
• Homebuyer(s) must use the property as principal residence.
• Homebuyer(s) must meet credit standards of participating lender.
• Homebuyer(s) must participate in pre-purchase counseling program provided by the lender.
• Monthly payment of principal, interest, taxes and insurance should not exceed 33% of Homebuyer(s) gross monthly income.
• Homebuyer(s) must meet federal income requirements for household size. Current annual income is defined in the Federal Regulations at 24 CFR Part 813.

Income Guidelines

Household Size	Maximum Household Income
1	$35,500
2	$40,600
3	$45,650
4	$50,700
5	$54,800
6	$58,850
7	$62,900
8	$66,950

Affordable Financing

Participating lenders offer:

• 30-year loan term;
• Discounted fixed interest rate; and
• First mortgage loan to qualified buyers.

Appraisal and credit bureau report fees are required at time of application. P.M.I. may be required.

Participating Lending Institutions

• First Federal Savings and Loan Association of Lakewood
  14806 Detroit Avenue
  (216) 221-7300
• Charter One
  Barbara Zalud, Mortgage Loan Officer
  Phone: 440-832-1332
  Email: barbara.c.zalud@charteronebank.com
  
  David C. Restifo, Mortgage Loan Officer
  Cell 440.289.6224; Office 216.221.2200
  Email: David.Restifo@charteronebank.com
  

Eligible Properties

• Single-family or two-family properties within the City of Lakewood.
• Purchase price cannot exceed $226,138 for a single-family or condominium, or $256,248 for a two-family property.
• Must meet certain Lakewood Building Department Housing Code Standards at time of occupancy. Seller must apply for City Building Department inspection prior to sale and pay a $50.00 for single- or two-family properties.
• If purchasing a qualified two-family house, only owner-occupied or vacant properties are eligible. If two-family house has a current tenant, there must be no displacement or relocation of current tenant(s).

First Time Homebuyer Seminar

• Offered once a month to prospective homebuyers.
• Mandatory to those seeking assistance through the HOME Program.
• Information provided regarding program requirements and federal lead-based paint guidelines.
• Program participants are required to visit the Department of Housing and Urban Development's website and take the Visual Assessment Training Course prior to attending the seminar.
  • Follow the directions offered throughout the training
  • At the end of the course, complete the name and address page. (Use the cursor to move between entry spaces--do not use the Tab or Return key.)
  • Print out certificate when prompted

For more information regarding this program, please contact:

Note: Prospective homebuyers must complete certain letters and/or certifications required by the U.S. Department of Housing and Urban Development (HUD). They are also required to sign a notice from HUD's Office of Lead-Based Paint Abatement and Poisoning Prevention, which promotes awareness of the dangers of lead-based paint. These documents, once executed, must be filed with Lakewood's Division of Community Development. Prospective homebuyers can obtain this information from their lender, or by contacting Ms. Leigh.