HPD - Homebuyers - Down Payment Assistance Programs

HPD - Down Payment Assistance Programs
Loan Services Request Procedure

The New York City Department of Housing Preservation and Development (HPD) Homefirst Program provides forgivable loans to first-time homebuyers, to use toward down payment and closing costs to purchase a home in any one of the five boroughs of New York City, in order to create homeownership opportunities for New Yorkers.

If you are a homeowner who purchased a home with down payment assistance provided by HPD’s Homefirst Program and would like to do any of the following, as it pertains to your HPD Homefirst loan, please follow the procedures below for the service that you would like HPD to perform.

Refinance your home for rate and term only (Subordination)
Refinance your home for cash out (Payoff)
Sell your home (Payoff)
Transfer ownership of your home without sale (Payoff)
Pay off the balance of your Down Payment Assistance Loan (Pay-off)
Have HPD remove the City’s lien because you have met all of the requirements of the City’s loan (Termination / Removal of City’s Lien)
Any combination of the above

* For all requested services, please allow 10 business days for an official response, although responses may be provided in less than 10 days.

*All requests and/or documentation should be sent to the attention of
Tameka Spencer
HPD – Down Payment Assistance Unit
100 Gold Street, Room 9K-7
New York, New York 10038

I. Subordination

* PLEASE NOTE, HPD DOES NOT SUBORDINATE TO HOME EQUITY LOANS.

A. Refinance For Rate & Term Only
If you are a homeowner who is refinancing your home for rate and term only, you need a Subordination from HPD. To obtain a Subordination, you must do the following

Complete a Loan Service Request Form (in PDF) providing all requested information.
Provide homeowner’s name, address, telephone number, tax block and lot numbers, and the HPD Program name through which the loan was issued. (ex: Homefirst)
Check the box next to Subordination, the type of service that you need, and the box next to “Refinance For Rate and Term only” and indicate any comments that you may want HPD to have.
Attach the new lender’s loan commitment for your new mortgage, a copy of the good faith estimate, the original HUD-1 form that shows the reconciliation for the purchase of the home, and the appraisal done for the purpose of the refinance, and a copy of the bank’s pay-off statement for the old mortgage.
Send the completed Loan Service Request Form with the required attachments by mail to Down Payment Assistance Unit, Attention: Tameka Spencer, Deputy Director.

II. Payoff

A. Refinance for Cash Out
If you are a homeowner who is refinancing your home to take cash out and the total proceeds
received for the refinance of your property is greater than or equal to the value of the HPD Homefirst loan, you need a Payoff letter from HPD.

To obtain a Payoff letter from HPD, you must do the following:

Complete a Loan Service Request Form (in PDF) providing all requested information.
Provide homeowner’s name, address, telephone number, tax block and lot numbers, and the HPD Program name through which the loan was issued.
Check the box next to Pay-off, the type of service that you need, and the box next to “Refinance For Cash Out” and indicate any comments that you may want HPD to have.
Attach the new lender’s loan commitment for your new mortgage, a copy of the bank’s pay-off statement for the old mortgage, a copy of the good faith estimate, the original HUD-1 form that shows the reconciliation for the purchase of the home, the new appraisal that shows the value of the home and a copy of the bank’s statement for the old mortgage.
Send the completed Loan Service Request Form with the required attachments by mail to HPD’s Down Payment Assistance Unit, Attention: Tameka Spencer, Deputy Director.

B. Transfer Ownership of home with or without Sale

Please note: If you are transferring ownership of your home, you are required to repay the full amount of the HPD loan owed at that point in time.

If you are a homeowner who is transferring ownership of your home with or without sale, you need a payoff letter from HPD. To obtain this, you must do the following:

Complete a Loan Service Request Form providing all requested information.
Provide homeowner’s name, address, telephone number, tax block and lot numbers, and the HPD Program name through which the loan was issued.
Check the box next to Payoff, the type of service that you need, and the box next to “Transfer of Ownership with sale” or “Transfer of Ownership without sale” as the case may be, and indicate any comments that you may want HPD to have.
Attach a letter that explains the circumstances for the transfer of ownership, if you are not selling your home but is simply transferring ownership.
Attach the new lender’s loan commitment for your new mortgage, a copy of the bank’s pay-off statement for the old mortgage, a copy of the good faith estimate, the original HUD-1 form that shows the reconciliation for the purchase of the home, the new appraisal that shows the value of the home and a copy of the bank’s statement for the mortgage, if you are selling your home.
Send the completed Loan Service Request Form with the required attachments by mail to HPD’s Down Payment Assistance Unit, Attention: Tameka Spencer, Deputy Director.

C. Pay-off

If you are a homeowner who would like to pay off the balance of your HPD down payment assistance loan, you need a Pay-off letter from HPD. To obtain a Pay-off letter, you must do the following:

Complete a Loan Service Request Form providing all requested information.
Provide homeowner’s name, address, telephone number, tax block and lot numbers, and the HPD Program through which the loan was issued.
Check the box next to Pay-off (the type of service that you need) and indicate any comments that you may want HPD to have.
Select the option that indicates the service you need, and indicate any comments that you may want HPD to have.
Send the completed Loan Service Request Form with the required attachments by mail to HPD’s Down Payment Assistance Unit, Attention: Tameka Spencer, Deputy Director.

Removal of City’s Lien/Issue UCC-3

If you are a homeowner who has met all the requirements of the HPD’s Down Payment Assistance loan and are now entitled to a removal of the City’s lien, you need a Uniform Commercial Code-3 (UCC-3) from HPD. To obtain a UCC-3, you must do the following:

Complete a Loan Service Request Form providing all requested information.
Provide homeowner’s name, address, telephone number, tax block and lot numbers, and the HPD Program through which the loan was issued, if it is known.
Attach a copy of the original HUD-1 form that shows the reconciliation for the purchase of the home.
Check the box next to Removal of City’s Lien/Issue UCC-3 (the type of service that you need) and indicate any comments that you may want HPD to have.
Send the completed Loan Service Request Form with the required attachments by mail to HPD’s Down Payment Assistance Unit, Attention: Tameka Spencer, Deputy Director.