What is the Homebuyers Assistance Program?
UNPA has designed the Homebuyers Assistance Program as an incentive to attract buyers to the University Neighborhood and to financially assist families or individuals who are interested in buying a home in the UNPA Target Area.
The program has been in place since 1991. In those years, UNPA has provided assistance to more than 500 homebuyers with grants and loans totaling more than $1.2 million. Just think of this assistance as a "gift from Mom and Dad" toward the purchase of a one-, two- or three-family house to remain or become an owner-occupied home within the UNPA Target Area.
An "approved applicant" is one who buys property with the UNPA Target Area and plans to own and occupy it, and one who is eligible for a legitimate mortgage. There are no income restrictions. Approval is also based on the availability of funds.
Do I need to pay UNPA back?
The funding UNPA "grants" is legally recorded as a "10-year term zero interest loan" or "lien" or "second mortgage" that has a "due-on-sale" or "recapture agreement".
So, yes, you will need to pay UNPA back if you sell, rent or vacate the property before the required 10-year owner-occupancy term. Within the first 5 years, the funds must be repaid 100%. From Years 6 through 10, the amount of the payback decreases 20% a year until Year 10 when it is completely forgiven.
What paperwork do I need to submit to be considered for the program?
Once you find a property located within the UNPA Target Area, please contact UNPA. You will be instructed to submit an application, a signed copy of the accepted contract/purchase offer, your Good Faith Estimate and a mortgage commitment letter or "pre-approval letter".
How long does the approval process take?
The process can take as little as 48 hours once UNPA receives all of the required "paperwork". A letter will then be mailed to you with instructions for your attorney to submit additional "paperwork" within five days prior to closing.
Where is the UNPA Target Area?
The UNPA Target Area is bordered by Comstock Avenue on the West, East Colvin Street on the South, East Genesee Street on the North, and Cumberland Avenue on the East.
- A purchase within Area 1 is eligible for $4,500
- A purchase within Area 2 is eligible for $2,500
- A purchase within Area 3 is eligible for $1,500
An approved applicant also receives an additional $125 to apply toward attorney fees accrued during closing.