2024 Homebuyer Dream Program (HDP) & Homebuyer Dream Plus (HDP Plus)
You can get a grant to help you purchase your first home!
TEG Federal Credit Union is excited to participate in the 2024 Homebuyer Dream and Homebuyer Dream Plus Programs.
TEGFCU can provide assistance to help qualifying first-time homebuyers in New York obtain a generous grant from the Federal Home Loan Bank of New York (FHLBNY) to use towards your home’s down payment and closing costs.
Grant funds for the HDP are limited each year and are distributed to eligible homebuyers on a first-come, first-served basis.
What are the Homebuyer Dream Program Eligibility Requirements?
Homebuyer Dream Program
Grant up to $20,000
- Up to $19,500 in grant funding is available to be applied to down payment and closing costs.
- Up to $500 in grant funding is available to offset the cost of the homeownership course.
First-time Buyer(s)
To qualify, anyone who will be listed on the mortgage or their spouse must be a first-time homebuyer.
A first-time homebuyer is defined as an individual who has not owned a home during the 3 years before the purchase of the new home.
Homebuyer Certification Course
Homebuyers are required to take a homebuyer education course and provide the certificate prior to submitting the grant application. The Homeownership Counseling Certificate is valid for 18 months.
Find a homebuyer education course at ehomeamerica.org.
Income Limits
Household income for all adult occupants (18 years and older) must be at or below 80% of the Area Median Income (AMI) in the county where the new property is located.
Here is an example of the list of our counties:
| County | 1 & 2 Person Household Income Limits | 3+ Person Household Income Limits |
|---|---|---|
| Dutchess | $95,200 | $109,480 |
| Orange | $95,200 | $109,480 |
| Putnam | $135,552 | $158,144 |
| Rockland | $135,552 | $158,144 |
| Sullivan | $82,960 | $95,404 |
| Ulster | $82,960 | $95,404 |
| Westchester | $140,928 | $164,416 |
Purchase and Sales Contract
Grant funds will be made available to qualifying first-time homebuyers in conjunction with a TEGFCU Mortgage.
You must be in contract before you can apply for the grant. You will need to provide your fully executed purchase contract, income documentation, and Homebuyer Course certificate, and then TEGFCU will submit your grant application for FHLBNY approval.
Down Payment
You will need to provide a minimum of $1,000 of your own funds to use towards the purchase of the home.
Owner Occupancy
HBD Grant is secured by a subordinate mortgage on the property that will be forgiven after five years of owner occupancy. No interest or payments are required, however, if the borrower sells or ceases occupying the subject property as their primary residence within 5 years, they may be required to repay a prorated portion of the grant.
Homebuyer Dream Program Plus
Grant up to $10,000
- Up to $9,500 in grant funding is available to be applied to down payment and closing costs
- Up to $500 in grant funding is available to offset the cost of the homeownership course
First-time Buyer(s)
To qualify, anyone who will be listed on the mortgage or their spouse must be a first-time homebuyer.
A first-time homebuyer is defined as an individual who has not owned a home during the 3 years before the purchase of the new home.
Homebuyer Certification Course
Homebuyers are required to take a homebuyer education course and provide the certificate prior to submitting the grant application. The Homeownership Counseling Certificate is valid for 18 months.
Find a homebuyer education course at ehomeamerica.org.
Income Limits
Household income for all adult occupants (18 years and older) must be greater than 80% but not exceeding 120% of the Area Median Income (AMI) in the county where the new property is located.
Here is an example of the list of our counties:
| County | 1 & 2 Person Household Income Limits | 3+ Person Household Income Limits |
|---|---|---|
| Dutchess | $95,201 – $142,800 | $136,851 – $164,220 |
| Orange | $95,201 – $142,800 | $136,851 – $164,220 |
| Putnam | $135,553 – $203,328 | $197,681 – $237,216 |
| Rockland | $135,553 – $203,328 | $197,681 – $237,216 |
| Sullivan | $82,961 – $124,440 | $119,256 – $143,106 |
| Ulster | $82,961 – $124,440 | $119,256 – $143,106 |
| Westchester | $140,929 – $211,392 | $205,521 – $246,624 |
Purchase and Sales Contract
Grant funds will be made available to qualifying first-time homebuyers in conjunction with a TEGFCU Mortgage.
You must be in contract before you can apply for the grant. You will need to provide your fully executed purchase contract, income documentation, and Homebuyer Course certificate, and then TEGFCU will submit your grant application for FHLBNY approval.
Down Payment
You will need to provide a minimum of $1,000 of your own funds to use towards the purchase of the home.
Owner Occupancy
HBD Plus is a grant funded at closing and will reflect the Closing Disclosure. There are no retention requirements or subordinate lien associated with this grant.
Free Mortgage Pre-Approval
Know exactly what you qualify for!
Start searching for your new home, knowing the loan amount, interest rate, and monthly payment you could qualify for. Not only will you know what you can afford, but you’ll get a competitive edge since you’ll be able to make a solid offer when you find the right house.
How Does the Program Work?
- Discuss the Eligibility Criteria and Required Documentation for HDP and HDP Plus with a TEGFCU Mortgage Expert to determine if you will qualify for the program.
- Once you have an accepted purchase contract for your new home, provide your fully executed purchase contract, income documentation, and Homebuyer Course certificate. TEGFCU will submit your grant application to the Federal Home Loan Bank of NY.
- FHLBNY reviews your application and submitted documents.
- The grant is subject to the FHLBNY approval. If approved, you have up to 90 days to close on your new home.
Please note: Grants are not transferable to different homebuyer borrowers or properties.
Apply in 7 Easy Steps
Get Prequalified with TEG
Determine HDP household eligibility
Take a Homebuyer Certification Course
Make an offer on a house
Submit a TEG mortgage application
Provide documents to TEG
TEG applies for the HDP on your behalf
Meet Our Mortgage Officers
We are here to help you secure the loan approval you need! With an extensive background in mortgage lending, we are committed to helping you find the best possible financial solution. APPLY TODAY with one of our Mortgage Officers.
Get personalized, one-on-one service that is unequaled by other lenders. Our team has the expertise to walk you through these questions and more. We’ll start by getting to know you, then help you get you pre-approved for the right loan so you know how much house you can afford. Our experienced staff are here to help make the loan process as smooth as possible for you, and can help you:
Matthew Bannan
SENIOR MORTGAGE OFFICER
NMLS# 404022
Jessica Schoen
Senior Mortgage Officer
NMLS# 22486
Jeffrey Shields
Mortgage Officer
NMLS# 1466211
Kevin Arduino
Mortgage Officer
NMLS# 2514289
Scott McNally
Mortgage Officer
NMLS# 1841508
Darren Dibenedetto
Senior Mortgage Officer
NMLS# 404038Conventional Mortgage & Refinance Rates
| Mortgage Type | Rate | APR* | Points |
|---|---|---|---|
| 30 Year Fixed | 6.500% | 6.640% | 0.875% |
| 20 Year Fixed | 6.250% | 6.431% | 0.875% |
| 15 Year Fixed | 6.250% | 6.417% | .500% |
APR = Annual Percentage Rate. Rates effective as of 06/26/2024. All loans are subject to approval. APR assumes a $300,000 loan amount with escrows a FICO score of 760 or higher for a loan for an owner-occupied (primary residence), single-family dwelling in New York State with a loan-to-value ratio of 75% or less, and no cash-out.
For example, a 30-year, $300,000 conforming mortgage with a fixed APR of 6.627% has an approximate payment amount of $1,896.20. Real estate taxes, insurance, and private mortgage insurance (if applicable) are not included; therefore the actual payment obligation will be greater. Your rate may vary based on your creditworthiness, loan amount, purpose, property type, occupancy, LTV, lock period, and other credit characteristics.
All rates and terms are subject to change without notice. No rate is guaranteed without a valid rate lock. A point is equal to 1% of the loan amount’s balance. Private mortgage insurance (PMI) is required on mortgages that exceed 80% loan-to-value (LTV). When refinancing, the maximum loan-to-value is 80% if you take cash out. Contact a TEG Mortgage Officer for further details. Other terms and conditions may apply.
| Mortgage Type | Rate | APR* | Points | First Cap | Subsequent Cap | Lifetime Cap |
|---|---|---|---|---|---|---|
| 5/6 SOFR ARM | 5.750% | 7.006% | 0.875% | +/- 2.00% | +/- 1.00% | +/- 5.00% |
| 10/6 SOFR ARM | 6.000% | 6.683% | 0.875% | +/- 5.00% | +/- 1.00% | +/- 5.00% |
APR = Annual Percentage Rate. Rates effective as of 06/26/2024. All loans are subject to approval. APR assumes a $300,000 loan amount with a FICO score of 760 or higher for a loan for an owner-occupied (primary residence), single-family dwelling in New York State with a loan-to-value ratio of 75% or less. Rates on 5/6 ARMs are fixed for the first five years and subsequently subject to change bi-annually. Rates on 10/6 ARMS are fixed for the first ten years and subsequently subject to change bi-annually.
For example, a 5/6 ARM at a fixed initial interest APR of 6.994% would initially be $1,750.72 or a 10/6 ARM at a fixed initial interest APR of 6.672%, would initially be $1,798.65, with each loan adjusting every six months after the initial term based on an index and margin. Real estate taxes, insurance, and private mortgage insurance (if applicable) are not included; therefore, the actual payment obligation will be greater. After the initial fixed term, rates will adjust based on the index, Secured Overnight Financing Rate (SOFR), and a margin. Your rate may vary based on your creditworthiness, loan amount, purpose, LTV, lock period, and other credit characteristics.
All rates and terms are subject to change without notice. No rate is guaranteed without a valid rate lock. A point is equal to 1% of the loan amount’s balance. Private mortgage insurance (PMI) is required on mortgages that exceed 80% loan-to-value (LTV). Contact a TEG Mortgage Officer for further details. Other terms and conditions may apply.
Homebuying Questions?
Get answers in our Mortgage Learning Center.
Find helpful articles, tools, and other great resources to help you with your homebuying journey.
Who Can Apply?
As a not-for-profit credit union, we focus on being your financial partner, helping you save money, and guiding you to financial success. Come talk to us and discover the TEGFCU Difference. Membership is open to all those who live, work, worship, or attend school in the New York Counties of Dutchess, Orange, Rockland, Putnam, Sullivan, Ulster, and Westchester.
The grant funds will be made available to qualifying first-time homebuyers in conjunction with a TEGFCU mortgage. Please contact a mortgage officer for additional details if you are a member looking to purchase outside of our charter area.
The Homebuyer Dream Program® (HDP®) and The Homebuyer Dream Plus Program® (HDP Plus®) are registered trademarks of the Federal Home Loan Bank of New York (FHLBNY). The FHLBNY’s website has additional program details: Homebuyer Dream Overview and Homebuyer Dream Plus Overview. Borrowers must meet membership eligibility, loan approval, HDP qualification requirements, and be first-time homebuyers. A first-time homebuyer is defined as an individual who has not owned a home during the 3 years before the purchase of the new home. Grant is up to $19,500 for down payment and closing costs and $500 toward homebuyer education for the Homebuyer Dream Program. Grant is up to $9,500 for down payment and closing costs and $500 toward homebuyer education for the Homebuyer Dream Plus Program. HDP and HDP Plus both have limited funds that are available on a first-come, first-served basis and even if the Household meets all the terms and conditions this does not guarantee that there may be funds available at the time that the Household qualifies. Grants are not transferable to different homebuyer borrowers or properties.
The FHLBNY reserve the right to change the terms and conditions at any time, without prior notice. The grant is a Federal Home Loan Bank of NY program and funding is subject to their approval.
1These rate charts are as of 3/5/2024 based on a $300,000, This is based on 75 LTV, 760 FICO, $300,000 loan amount with escrows, 30 day lock. Your individual rate may vary based on loan amount, purpose, credit, LTV, lock period and other credit characteristics. Please note that mortgage interest rates may change several times a day in reaction to market movement.
2Effective date 3/5/2024. APR=Annual Percentage Rate. Advertised Rates are as low as and are based on an evaluation of credit history and down payment, so your rate may differ. All loans are subject to credit approval. All rates and terms are subject to change without notice. Contact a credit union employee for further details. Other terms and conditions may apply. Rates on 5/6 ARMs are fixed for the first five years and subsequently subject to change bi-annually. Rates on 10/6 ARMS are fixed for the first ten years and subsequently subject to change bi-annually.
We Do Business in Accordance with Federal Fair Lending Laws – Fair Housing Poster.
Home Mortgage Disclosure Act Notice: The HMDA data about our residential mortgage lending are available for review. The data show: Geographic distribution of loans and applications Ethnicity, race, sex, and income of applicants and borrowers Information about loan approvals and denials. HMDA data for many other financial institutions are also available online. For more information, visit the Consumer Financial Protection Bureau’s Web site www.consumerfinance.gov/hmda.
