First-Time Homebuyer HOME Programc
Mission Statement
The Lakewood HOME Program provides one of the best mortgage financing packages available to qualified first time home buyers interested in purchasing a Lakewood home. Assistance, which comes in the form of a 0% interest, no monthly payment second mortgage is used to assist with both down payment and closing costs.
The Lakewood First-Time Homebuyer HOME Program Offers:
- deferred payment, zero percent (0%) interest second mortgage
- $7,500 for condominium property,
- $10,000 for single-family property, or
- $14,000 for two-family property with forgiveness schedule.
Loan to be repaid immediately at time of resale, transfer, or if property becomes absentee-owned. Purchasers of two family properties are eligible for loan forgiveness. Fifty percent (50%) will be forgiven after the fifth year of owning and occupying the property and twenty percent (20%) each year thereafter until one hundred percent (100%) forgiven.
- Pre-purchase counseling program to help homebuyers become more informed homeowners.
- Homebuyers can be pre-qualified by participating lending institutions to determine their maximum purchasing ability.
Eligible Homebuyers
- Homebuyer(s) must either be a displaced homemaker, single parent, or a person who has not owned a home for 3 years.
- Homebuyer(s) must provide a minimum of 1.5% of the sale price from personal funds.
- Homebuyer(s) must use the property as principal residence.
- Homebuyer(s) must meet credit standards of participating lender.
- Homebuyer(s) must participate in pre-purchase counseling program provided by the lender.
- Monthly payment of principal, interest, taxes and insurance should not exceed 33% of Homebuyer(s) gross monthly income.
- Homebuyer(s) must meet federal income requirements for household size. Current annual income is defined in the Federal Regulations at 24 CFR Part 813.
Income Guidelines
Household Size
Maximum Household Income
| 1 |
$36,300 |
| 2 |
$41,500 |
| 3 |
$46,700 |
| 4 |
$51,850 |
| 5 |
$56,000 |
| 6 |
$60,150 |
| 7 |
$64,300 |
| 8 |
$68,450 |
Affordable Financing
Participating lenders offer:
- 30-year loan term;
- Discounted fixed interest rate; and
- First mortgage loan to qualified buyers.
Appraisal and credit bureau report fees are required at time of application. P.M.I. may be required.
Participating Lending Institutions
- First Federal Savings and Loan Association of Lakewood
14806 Detroit Avenue
(216) 221-7300
Eligible Properties
- Single-family, two-family, or condominium properties within the City of Lakewood.
- Purchase price cannot exceed $226,138 for a single-family or condominium, or $256,248 for a two-family property.
- Must meet certain Lakewood Building Department Housing Code Standards at time of occupancy. Seller must apply for City Building Department inspection prior to sale and pay a $25.00 for single- or two-family properties or a $50.00 fee for condominiums.
- If purchasing a qualified two-family house, only owner-occupied or vacant properties are eligible. If two-family house has a current tenant, there must be no displacement or relocation of current tenant(s).
First Time Homebuyer Seminar
- Offered once a month to prospective homebuyers.
- Mandatory to those seeking assistance through the HOME Program.
- Information provided regarding program requirements and federal lead-based paint guidelines.
- Program participants are required to visit the Department of Housing and Urban Development's website and take the Visual Assessment Training Course prior to attending the seminar.
- Step One: Scroll down the page and click on Training Curricula
- Step Two: Click on the Visual Assessment Course to select
- Step Three: Click on the logo to begin training
- Step Four: Follow the directions offered throughout the training
- Step Five: At the end of the course, complete the name and address page. (Use the cursor to move between entry spaces--do not use the Tab or Return key.)
- Step Six: Print out certificate when prompted
Application Procedure
For more information regarding this program, please contact:
Mary Leigh
- Programs Manager, Division of Community Development
12650 Detroit Avenue
Lakewood, Ohio 44107
Note: Prospective homebuyers must complete certain letters and/or certifications required by the U.S. Department of Housing and Urban Development (HUD). They are also required to sign a notice from HUD's Office of Lead-Based Paint Abatement and Poisoning Prevention, which promotes awareness of the dangers of lead-based paint. These documents, once executed, must be filed with Lakewood's Division of Community Development. Prospective homebuyers can obtain this information from their lender, or by contacting Ms. Leigh.
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Now...Please share the City of Cleveland Programs to Buy Homes
Look, we can find tons of programs to buy homes outside of the city limits....but finding downpayment assistance and programs that help first time home buyers get into homes directly in the inner city, particularly low income families is a challenge...
Right now, there is a single, disabled mother of 6 who got a home loan to buy a home-but she's having trouble finding downpayment money in the process...Her disability income is limited....but will empower her to pay less in homeownership costs than rent....if she can come up with her closing costs, down payment, and moving costs....
Moreover, with her low income-her loan is only for $40,000 and requires that the house be FHA appraisable and livable... In other words, it's got to be in A condition for her to purchase. Plus, she needs at least 4 bedrooms, laundry facilities, and appliances...and then she could achieve her American Dream of having some sense of security for her children's futures.
What downpayment assistance programs are available to her in the city of Cleveland????
She needs at least $1200 just for the 3% down payment. She does not get tax refunds at the end of the year.
This is a typical story for the qualified low income home buyers of the City of Cleveland. That's why there are so many evictions...the records prove that the average tenant family rent is approximately 51% of their income. That is surreal. That is a setup for failure. They can buy homes for less than a 1/3 of their income-but the banks don't want to lend under $50,000 in most cases because then they are not "making" anything significant on the loans.
Perhaps when our leadership takes the GREED out of the EQUATIONS...they'll get back to reality and reel in these surreal odds that have devastated our community at large in Cleveland.
Now, either we are steering all of our low income folks into assisted living facilities or Section 8/EDEN locations so that we can demolish the vacant properties and turn Cleveland into a Green community or we are deliberately acting without any common sense to making long term plans for our community at large that is viable to the residents' needs!!!
What kind of leadership has been elected that fails to oversight these tremendous issues???
What are the underhanded objectives that these players are seeking which have driven this local government....the 2020 VISION of the City of Cleveland???
KEEP FIGHTING THE GOOD FIGHT AND REVEALING THE TRUTH about these issues guys....our people deserved better planning over the last 30 years and we are going to remain steadfast to protect their rights over the next 30 years.....
NO MORE CORRUPTION VIOLATING OUR CITIZENS!!!!