Challenge Grant
The Challenge Grant Program provides down payment and closing cost assistance to first time low/moderate home buyers, purchasing single family homes within the City of Rochester. Program grants of up to $3,000 are available, pending funding availability. Eligible costs include: NYS mortgage tax, bank and buyer's attorney fees, recording fees, private mortgage insurance, title insurance, school and real estate taxes (up to 14 months), up to 30 days pre-paid interest, application fee, appraisal fee, credit check, home buyer education, home owner's insurance policy, tax service fee, equalization, buyer's title insurance, lead paint inspection, HQS/energy assessment inspection and home inspection. A minimum personal investment of $1500 is required. A lien is placed against the property for the 5-year required residency period.
Eligible buyer must:
- Have household income at or less than 100% of area median income.
- Be first time buyers (also eligible displaced spouses and persons who owned property more than 3 years ago) Have a purchase offer dated after the commitment of the Challenge funds
- Qualify for a mortgage with a minimum of 15 year term no more than 30 years at current interest rate. (Commitment to be reviewed and approved by the Home Store staff) where by the monthly payment (PITI) is no more than 30% of total gross monthly income and combined debt is no more than 41%.
- Complete the Home Store's pre and post home buyer education classes.
- Reside in the property as primary residence for a minimum of 5 years.
Eligible properties must:
- Be located within the City of Rochester (not within a flood zone or airport clear zone)
- Be a single family home which is currently owner occupied, vacant or being purchased by the current tenant.
- Pass a Housing Quality Standard (HQS) inspection and a lead assessment test.
Opportunity to remedy violations will be given to the seller prior to closing or the buyer through a rehabilitation mortgage if the repairs can be made within 3 months. A re-inspection is required.
Application Process:
- Complete and return application and return it to the Home Store, 265 North Clinton Avenue, Rochester, NY 14605. The application is available at the Urban League of Rochester, 265 North Clinton Avenue, and on-line here: Challenge Grant Application.
- Once a fully complete application (application plus all of the required attachments) is on file with a check for $15.00 made to the Urban League of Rochester for a credit report, the staff will process the application within 7-10 business days.
- If the applicant is bankable, a letter will be sent requesting the buyer to schedule a follow-up interview with Home Store staff. If the applicant does not appear to be bankable, a letter will be sent indicating the reason and referring the individual to appropriate follow-up services.
- Once the application is processed, a commitment of funds will be made and the applicant will have 90 days to find a property, complete pre-purchased education and secure a mortgage commitment.
For more information on the Challenge Grant, please contact Evelyn Garcia at 585.325.HOME (4663) or .
