RUPCO’s NeighborWorks® HomeOwnership Center has a wealth of information and resources to guide you through the process. Wondering if homeownership is an option for you and your family? Get started today clicking on the button below! Let us be your partner through the homebuying process. Buying a home is one of the biggest investments we make. Many people feel the process can be confusing and difficult. We’re here to help you successfully purchase your first home.

WHAT RESOURCES DOES THE HOMEOWNERSHIP CENTER OFFER FIRST-TIME HOMEBUYERS?

FREE Individual Mortgage Readiness Analysis

You are eligible to receive an in-depth mortgage readiness assessment from one of our certified housing specialists. They will review your income, credit, budget and savings, and set you on the path to homeownership. If you are ready, ask if you qualify for grants to assist you.

Homebuyer Dream Program

The Homebuyer Dream Program is offered by local lenders through the Federal Home Loan Bank of New York. Grants up to $15,000 for down payment and closing costs.

Homebuyer Education

Creating knowledgeable homebuyers is our goal. Through our education program, we will walk you through the entire homebuying process. You will also benefit from meeting experienced professionals such as attorneys, lenders, home inspectors, realtors, and others who will share their local market perspectives. For your convenience, RUPCO offers both in-person and online education options that best fit your busy schedule.

Grants for First-Time Homebuyers

RUPCO successfully works with local municipalities to attain funding to assist low-income, first-time buyers with their home purchases. Qualifications for assistance vary depending on funding sources. You will learn more details at our workshop, where our counselors will explain current funding opportunities. Funding can be used for down payment, closing costs and/or post-closing repairs to the home.

Section 8 to Home Ownership

Section 8 to Home Ownership provides a wonderful opportunity for families receiving Housing Choice Voucher Program (Section 8) rental assistance to create roots in the community, create pride, and have a safe place for their children. Contact your HCV Specialist to see if you are eligible to apply.

Mortgage Loan Programs

RUPCO offers a variety of loan products in partnership with key mortgage lenders.

SONYMA National Rehabilitation Program(NRP)

SONYMA National Rehabilitation Program (NRP) for Homebuyers purchasing homes in Ulster County and Orange County in need of repair

We’re connecting homebuyers with SONYMA’s Neighborhood Revitalization Program , a package of incentives to help owner‐occupant homebuyers purchase and renovate vacant homes in Kingston, Middletown and Newburgh.

Program features include:

* Up to $20,000 cash assistance to renovate a home that you purchase

* Access to financing additional improvements into your purchase mortgage for post-closing rehab

* NRP can be combined with other grants and assistance programs thereby maximizing your ability to make your new home safe, secure and energy-efficient

* SONYMA mortgages of 30 years, low interest, no “Borrower Points,” down payment assistance arranged through select banks (M&T Bank , Ulster Savings Bank, Mid-Hudson Valley Federal Credit Union)

Eligible Properties

* Vacant properties in designated areas capable of housing 1 to 4 families

* Seller must be able to pass a clean title to the purchaser

Eligible Applicants:

* Applicant must occupy the property as the primary residence

* Eligibility is determined by income limits up to 125% of Area Median Income (which varies by county) or 150% on a case‐by‐case basis

* Good credit, stable employment and ability to make monthly mortgage payments

We’re ready to assist you with the purchase of a vacant home* located one of the eligible communities of Kingston, Middletown, Newburgh. For assistance in Middletown and Newburgh, call (845) 713-4568; for assistance in Kingston, call (845) 331-9860.

*Vacant simply means no one is living at the address . The property does not have to be abandoned to qualify.

USDA Rural Development 502 Direct Loan Program

 RUPCO is an official packager of the USDA Rural Development 502 Direct loan Program. Counseling and completion of approved education is required to obtain these loans and is provided through RUPCO. Loans requirements regarding maximum loan amounts and income limits are set by county and is for eligible properties within designated rural areas.

What does this program do?
Also known as the Section 502 Direct Loan Program, this program assists low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.

Who may apply for this program?
A number of factors are considered when determining an applicant’s eligibility for Single Family Direct Home Loans. At a minimum, applicants interested in obtaining a direct loan must have an adjusted income that is at or below the applicable low-income limit for the area where they wish to buy a house and they must demonstrate a willingness and ability to repay debt. Credit history and additional requirements apply.

Can a single person apply or do I need to be part of a family?
Singles, family households and unrelated partners may apply

Applicants must:

  • Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet
  • Agree to occupy the property as your primary residence
  • Have the legal capacity to incur a loan obligation
  • Meet citizenship or eligible noncitizen requirements
  • Not be suspended or debarred from participation in federal program

Properties financed with direct loan funds must:

  • Generally be 2,000 square feet or less
  • Not have market value in excess of the applicable area loan limit
  • Not have in-ground swimming pools, Property size must be below 5 acres and not sub dividable
  • Not be designed for income producing activities

Borrowers are required to repay all or a portion of the payment subsidy received over the life of the loan when the title to the property transfers or the borrower is no longer living in the dwelling.

Applicants must meet income eligibility for a direct loan.

https://www.rd.usda.gov/files/RD-DirectLimitMap.pdf  

This is not the full list of requirements or conditions of the USDA 502 direct loan program. Additional information or questions can be directed to your counselor or found on the USDA website

USDA FAQ


What is an eligible area?

Generally, rural areas with a population less than 35,000 are eligible. Visit the USDA Income and Property Eligibility website for complete details.

How many funds can be used?

Loan funds may be used to help low-income individuals or households purchase homes in rural areas including closing costs. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. Funding amount for the total loan for all purposes is based on the ability to pay. Repair loans are provided to make the home meet habitability conditions and eliminate health and safety issues and loan approval. Homes are inspected by a USDA Rural Development representative in addition will require a third party independent NYS certified home inspection report in addition to other testing where required prior to approving the home.

How much can I borrow?

The maximum loan amount an applicant may qualify for will depend on the applicant’s repayment ability. The applicant’s ability to repay a loan considers various factors such as income, debts, assets and the amount of payment assistance applicants may be eligible to receive. Regardless of repayment ability, applicants may never borrow more than the Area’s Loan Limits (plus certain costs allowed to be financed) for the county in which the property is located.  https://www.rd.usda.gov/files/RD-SFHAreaLoanLimitMap.pdf

What is the interest rate and payback period? 

Fixed interest rate based on current market rates at loan approval or loan closing, whichever is lower Interest rate when modified by payment assistance, can be as low as 1% Up to 33 year payback period – 38 year payback period for very low income applicants who can’t afford the 33 year loan term.

How much down payment is required?

No down payment is typically required. Applicants with assets higher than the asset limits may be required to use a portion of those assets or cover costs above their approved loan amount.  

Is there a deadline to apply?

Applications for this program are accepted through your local RD office year round.

How long does an application take?

Processing times vary depending on funding availability and program demand in the area in which an applicant is interested in buying and completeness of the application package.

What governs this program?

The Housing Act of 1949 as amended, 7 CFR, Part 3550,
HB-1-3550 – Direct Single Family Housing Loans Field Office Handbook 

Why does USDA Rural Development do this?

USDA Rural Development’s Section 502 Direct Loan Program provides a path to homeownership for low- and very-low-income families living in rural areas, and families who truly have no other way to make affordable homeownership a reality. Providing these affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.

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