Housing Loans Overview

The Mitchell-Lama Housing Loan Program provides interest-free loans of up to $30,000 to lower-income residents of New York City’s five boroughs, Westchester, or Long Island to help purchase a Mitchell-Lama apartment.

Loan applicants must have annual pre-tax household income at or below the income limits for their household size. If your annual pre-tax household income is slightly above the limit in the chart below, please contact Loan@HFLS.org to speak with a Loan Officer about your specific situation; you may still qualify for an HFLS loan.

Applicants must have received an official Mitchell-Lama closing letter listing the apartment’s purchase price and monthly maintenance and must submit this document to HFLS with their application. Loans may be up to $30,000 or 80% of the apartment purchase price, whichever is lower, and are repaid in installments of $250/month over 10 years.

All loans have a one-month grace period before repayments begin. Repayments are made on either the 5th or the 20th of each month; borrowers select their preference before HFLS disburses the loan. All loan repayments are made by electronic debit of a checking account.

Guarantor Information

Two guarantors are required for all loans, and both guarantors must complete and sign Guarantor Forms. A married couple is considered one guarantor. If a guarantor is married, his or her spouse must also complete and sign the Guarantor Form.  

Each guarantor is “jointly” and “severally” liable for the loan in the event a borrower is unable to pay for any reason. This means that, while HFLS would expect each guarantor to share equally in the responsibility of repaying the loan, each is liable legally for the full amount, and any one guarantor could be called upon to repay the balance due.

Guarantors must meet the following criteria:

  • US citizens or permanent residents currently living in New York, New Jersey, or Connecticut
  • Have a checking account, good credit, and pre-tax household income of at least $50,000 a year
  • Currently employed (HFLS prefers persons who have worked at least one year in their present position), or if retired, can demonstrate their ability to repay through pension/retirement income or assets.

Even if they meet the requirements above, the following people may not guarantee a loan:

  • Persons living in the same household as the borrower
  • Persons who currently have an HFLS loan or are a guarantor on an HFLS loan
  • Pulpit Clergy (clergy are often asked to guarantee due to their high visibility within their community; this rule, therefore, exists for their own protection)
  • Persons who are unable to repay the loan

Housing Loan Documents & Interview

The information and documents below are required for a Mitchell-Lama Housing Loan. Once you have completed the below, email Loan@HFLS.org or call (212) 687-0188 to schedule a 15-minute loan interview, which will be conducted via phone or video call (Zoom). Please submit the required documents prior to your loan interview, either by uploading them with your online application or emailing them to Loan@HFLS.org.

From the borrower:

  • Housing Loan Application completed by the applicant and including information for their spouse, if they are married. A link to the Mitchell-Lama Housing Loan online application appears at the bottom of this page.
  • Official Mitchell-Lama closing letter, listing the apartment’s purchase price and monthly maintenance, and your original Mitchell-Lama lottery selection letter.
  • Most recent income tax return and your two most recent checking account statements.
  • Copies of government-issued photo IDs that include signatures and serve as proof of address for the borrower and their spouse (e.g. driver’s license). If the driver’s license does not include the borrower’s current address, HFLS may require proof of residency (e.g. a utility bill or account statement).
  • Voided check, checking account statement, or bank document that includes the borrower’s name, checking account number, and routing number.

From the guarantors:

  • Guarantor Form completed by each guarantor and including information for their spouse, if they are married. NOTE: The applicant will receive a link to an online guarantor form after submitting the online application, which they should forward to their guarantors. If the applicant provides the guarantors’ names and email addresses where requested in the online application, the guarantors will receive an email containing the guarantor form link as well.
  • Copies of government-issued photo IDs that include signatures for the guarantors and their spouses, if they are married (e.g. driver’s license or U.S. passport).

Failure to submit these documents will delay the processing of your application.

Once you have collected all the documents above, please email Loan@HFLS.org or call (212) 687-0188 to schedule your 15-minute loan interview with an HFLS Loan Officer, which will be conducted by phone or video call (Zoom). Loan interviews must be scheduled in advance.

Please submit the documents listed above to HFLS prior to the loan interview to avoid delays in processing your application.

During the loan interview, an HFLS Loan Officer will review your application and other required documents with you, determine whether any additional information is needed, and answer any questions you have.

Loan Decisions & Closing

HFLS reviews and decides on loan applications weekly. If we have questions about your application or guarantor, you may receive a call or email from a Loan Officer asking for further information before HFLS will make its decision.

You will receive an email within one week of your interview advising you whether your loan has been approved. HFLS, in its discretion, may decline to make a loan, make a loan in an amount less than that requested, or require different or additional guarantors.

If your loan is approved, the email you receive will contain instructions to complete the loan closing paperwork via DocuSign. The loan closing paperwork includes:

  • A Promissory Note, to be signed by the borrower, guarantors, and all spouses
  • An Authorization of Automatic Payments (ACH) form, so monthly loan payments can be withdrawn automatically from your checking account.

Once HFLS receives the signed documents above, we will disburse your loan funds directly into your checking account within three business days. (Please note that it may take a few days after the disbursement for the loan funds to appear in your checking account.)

Apply Now

Apply for a Mitchell-Lama Housing Loan Here

If you prefer to complete a hard copy application or require hard copy guarantor forms, please email Loan@HFLS.org or call (212) 687-0188.