City of Rochester Home Buyer Program City of

City of Rochester Home Buyer Program

City of Rochester SNAPSHOT 2018 Applications: 601 Closings: 196 Average Purchase Price: $96, 500 2019 Applications: 580 Closings: 179 Average Purchase Price: $97, 000

City of Rochester HOMEBUYER PROGRAM HOME Purchase Assistance Program (HPAP) Employer Assisted Housing Initiative (EAHI) HOME Rochester Program

City of Rochester HOME PURCHASE ASSISTANCE PROGRAM The HOME purchase Assistance Program (HPAP) provides closing cost assistance to first-time City buyers who meet program requirements Grants up to $3, 000 are available for 120% Median closing costs for Family Income limits home offered on the private market

City of Rochester 2019 – MEDIAN FAMILY INCOME (MFI) LIMITS Family Size 80% 120% 1 $42, 385 $63, 600 2 $48, 440 $72, 650 3 $54, 495 $81, 750 4 $60, 550 $90, 850 5 $65, 394 $98, 100 6 $70, 238 $105, 350 7 $75, 082 $112, 650 8 $79, 926 $119, 900 Numbers typically update in June For each person in excess of eight, the four-person income limit should be multiplied by an additional eight percent (. 08) (No max for EAHI applicants)

City of Rochester EMPLOYER ASSISTED HOUSING INITIATIVE The Employer Assisted Housing Initiative Program (EAHI): an incentive for private employers to encourage their employees to purchase homes in the City of Rochester. Funds of designated employers are In some cases matched with City NO income participating lenders funds for closings will also match grant maximums in effect costs for home funds offered on the private market

City of Rochester EMPLOYER ASSISTED HOUSING INITIATIVE Employer Partners • City of Rochester • Connected Communities (designated neighborhoods, 5/year) • Eastman Kodak • Highland Hospital (in designated neighborhoods, 5/year) • Hillside Family of Agencies (designated neighborhoods, 5/year) • Rochester City School District (waiting list, 10/year) • Rochester Institute of Technology (10/year) • Rochester Management Inc. • Rochester Regional Health/Unity (10/year) • Stantec Consulting Services • University of Rochester (designated neighborhoods) • Visiting Nurse Services • Windstream/PAETEC Communications (designated neighborhoods) • XEROX Corporation

City of Rochester HOME ROCHESTER PROGRAM Down payment and closing cost assistance to first-time buyers who meet program requirements. The HOME Rochester Program is administered by the Greater Rochester Housing Partnership (GRHP). Individuals interested Subsidy for homes in a HOME Rochester property must be rehabilitated through 80% or 120% Median approved by the City Family Income limits GRHP and up to and submit a buyer in effect (depending $6, 000 in closing approval request costs for purchase of on address) one of these homes form to be added to the list

City of Rochester ELIGIBILITY & PROGRAM REQUIREMENTS Buyers must submit a HBS application and obtain approval from HBS before executing a purchase offer (typically 4 -5 weeks) Applicants must not exceed income limits. HPAP: up to 120% MFI HOME Rochester: 80% or 120% (N/A for EAHI applicants) Credit requirements are flexible but generally require a 640 middle score (Please avoid Credit. Karma!) Homes must be located in the City of Rochester and must be one to four family properties Buyers must contribute at least $1, 500 of their own funds Buyers must live in the property for five years after closing (fifteen years for HOME Rochester) Buyers must qualify for a conventional, FHA, VA or SONYMA mortgage loan Program is compatible with most other grant programs, including the Homebuyer Dream and NRP Buyers must attend pre-and post -purchase homebuyer training unless waived by HBS

City of Rochester ELIGIBILITY & PROGRAM REQUIREMENTS Identification Income Supporting docs Other Social security card for everyone in household 8 weeks consecutive complete pay stubs for all household members 18 or over Last 2 years’ full tax returns AND W-2 statements for all jobs or income for all household members 18 or over Letter of Eligibility from participating Employer if eligible (EAHI Program) Photo ID for household members age 18 and OVER Copies showing details of all other forms of income Bank statements: Last 3 months for all accounts Copies of documents for any other grants or programs applied for Birth certificate for households members UNDER age 18 If self-employed: Current year-to-date and prior year Profit and Loss statement Note: Keep all originals as the application and documents will NOT be returned Recent tri-merge credit report from lender (Optional)

City of Rochester PROCESS I want a house! I found a house! • Complete and submit application with all required documentation. City will review; currently a 4 week turnaround • If eligible, meet for appointment with Program Manager to review grant agreement and receive approval (typically within 1 -2 weeks after review). • Will be referred for pre-purchase education if not already completed. • Submit purchase offer and other required documents to HBS • Apply for mortgage • Applicant will also need to take Operating Rental Property course if property is a double or more • Come sign Contract with City (typically within 1 -2 weeks of necessary docs submitted to City)

City of Rochester PROCESS (continued) I need money! When can I close? • Apply for mortgage with preferred lender (concurrent with HQS inspection) • Submit Mortgage Commitment and Closing Cost Estimate documents; MC must note City program dollars. • City will request funds through financial system once previous requirements are met and HQS inspection has passed. • Once check funds available, City Law Department will contact Applicant’s attorney • Attorneys will schedule closing and notify City • City coordinates EAHI funds (if applicable) Note: typical timeline between Purchase Offer received by HBS and a closing date is 8 weeks.

City of Rochester CITY RESPONSIBILITIES • Ensure all documentation is correct, current, and in file • Facilitate HQS Inspection; depending on response of seller/seller’s realtor, typically within 4 weeks • Process voucher and contract agreement (assuming applicant is still in good standing) • Contact applicant to come in to sign/notarize agreements • Facilitate financial requirements with lender or other stakeholders • Notify Attorneys when funds are available • Attend closing with City’s/Employer’s funds and documents

City of Rochester HOME Rochester Process Differences I want this house! The house is available! What does the City do? • After approval for standard HBS program, submit ‘Dibs’ form to be on the list. May only be on list for one house at a time, and may submit for a house even if it is months from completing rehabilitation. • Buyer may (and should) continue looking for other private market houses. • City and GRHP will review eligibility criteria (income requirements, approval in good standing, Officer/Teacher applicants, Construction Manager referrals, etc. ) and notify eligible applicants in order of eligibility. • Eligible buyer must provide Prequalification letter from eligible lender, proof of $1, 000 down payment, and attorney contact information. • Once final applicant is determined, that buyer will schedule appointment to sign purchase offer written by Homebuyer Services. • No HQS inspection.

City of Rochester INSPECTION – DON’T LET ANYONE PANIC Health and Safety inspection per HUD regulations Unrelated to Code Inspections or Certificate of Occupancy Buyer and seller agents will be notified of scheduling and issues No news is good news “If at first you don’t succeed, try again”

City of Rochester FAQs – BEFORE PURCHASE OFFER Why is the lender’s pre-qual number different from the City’s? Why can’t someone put in a PO prior to City approval? Do you count a part-time job/new job? What about income from other household members? Will you accept a co-signor?

City of Rochester FAQs – POST PURCHASE OFFER Why does it take so long? Why do you need the commitment to note the grant? What if the house isn’t in an EAHI-approved neighborhood? What if the lender/attorney sends commitment and it’s the first time you’ve heard of a transaction? Why do you sometimes need the appraisal?

City of Rochester OTHER USEFUL INFO Visit the following sites for an application and/or highlights: • http: //www. cityofrochester. gov/employerassisted. aspx • http: //www. cityofrochester. gov/homebuyer/ • http: //homerochester. org/ Please contact 428 -6888 or email Home. Buyer@cityofrochester. gov for further information