Mitchell-Lama Housing Loans
Loans for housing support the equity payment on a Mitchell-Lama apartment.
Loans for housing support the equity payment on a Mitchell-Lama apartment.
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.
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:
Even if they meet the requirements above, the following people may not guarantee a loan:
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:
From the guarantors:
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.
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:
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 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.
