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Mitchell-Lama Homeownership Loans Overview

The Mitchell-Lama Homeownership 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 [email protected] 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. Loan amounts are up to $30,000 or the apartment’s purchase price, whichever is lower, and are repaid in installments of $500 per month (60 months for a $30,000 loan).

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.

Since HFLS lends to households, a married couple is considered one borrower. If an applicant is married or partnered, he or she must include their spouse’s/partner’s information in the application.

Guarantor Information

Guarantor Overview

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 or partnered, his or her spouse/partner 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.

Who may be a guarantor?

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.

Who may not be a guarantor?

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

You, your spouse/partner, or your dependents
Persons who currently have an HFLS loan or are a guarantor on an HFLS loan
Persons who are financially unable to repay the loan

Application Process

Applications must be submitted through the HFLS Portal. When you click the application link, you will first complete a brief eligibility questionnaire. Next, the system will check whether you already have an HFLS Portal account. If you do, you will be prompted to log in. If you do not, you will be prompted to create an account before continuing with your application.

To apply for this loan, please complete the following steps:

1. Complete and submit the online loan application for this program, which includes uploading the following required documents:

From the borrower:

Housing Loan Application completed by the applicant and including information for their spouse or partner, if relevant. A link to the Mitchell-Lama Housing Loan online application can be found here.
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.

From the guarantors:

Online Guarantor Form submitted by the guarantor and including information for their spouse or partner, if relevant. The guarantor will receive an email including a unique link to an online Guarantor Form after the applicant submits their application.

2. After you submit your application, each guarantor you listed will automatically receive an email with a link to complete the online Guarantor Form, which includes identity verification through ID-Pal. Please remind your guarantor(s) to complete the form promptly. If they do not see the HFLS email in their inbox, ask them to check their spam or junk folder.

3. After receiving the completed application, Guarantor Form, and all ID-Pal verifications, an HFLS Loan Officer will contact you to request any missing information and schedule a 15-minute loan interview by phone.

4. During the interview, the Loan Officer will ask any questions they have about your application, explain the loan closing process and loan terms, and answer any questions you have.

5. View your application status, track its progress, and see whether any information or documentation is missing by logging in to the HFLS Portal.

Due to the high volume of applications we receive, we ask that you do not contact HFLS to inquire about the status of your application. HFLS reviews complete applications only in the order in which they are received. If you have not heard from a Loan Officer, it is because one of the steps above is not complete or because HFLS is processing applications that were completed before yours.

Loan Decisions & Closing

How long does it take HFLS to review and decide on my loan application?

HFLS reviews and decides on loan applications daily. 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.

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 my loan is approved, what happens next?

If your loan is approved, you will receive an email with loan closing documents for you to complete and sign electronically via DocuSign. The loan closing paperwork includes:

A Promissory Note, to be signed by the borrower, guarantor, and all spouses/partners
An Authorization of Automatic Payments (ACH) form, so the loan funds can be transferred directly into your checking account and so HFLS can withdraw monthly loan repayments directly from your checking account.

Once HFLS receives the electronically 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 extra days after the disbursement for the loan funds to appear in your checking account.)