Yeah everything about that program was looking golden for me until I saw that 
No equity/down payment is a HUGE issue. PMI will hurt your bottom line. Interest rate will be shitty because of the added risk youāre putting on the bank.
Also, in a town house you have 1 tenant and no diversification or distribution of risk. Can you afford several months of carry cost if you canāt find your lone tenant?
Multi unit is probably best because you have several tenants providing cash flow. If one goes away youāre not out of pocket for the entire carry cost. Also the property tax is spread out a bit better and you can better push the fluctuations over several tenants.
JMHO. I donāt do this income property gig yet but Iām trying to learn and read up on it. Itās pretty daunting with depreciation and tax loopholes etcā¦
I donāt think too many double units exist in this area. Mostly Single Families. Iām ok with waiting and putting 20% down though.
Turtle Island :tup:
I see you have to open an account to do that but I didnāt see a minum start up balance?
Pretty much. Unless you already have the place like Josh(lafengas) and then you move out and rent it, I see no problem with that.
Now remember this isnt for everyone but done right I think it can be to some extent. I have so many people Tell me they are amazed at how my brain works and Actually had a big insurance guy tell me he would pay me to go to school if I would work for him. Yet When I see some of the things you guys do on here for a living and things on the side, it totally blows my mind. Still not sure if that plan on a treadmill will take off but donāt think it will lol!
WOW. I wonder what a night goes for. Probably a couple grand or so.
I know this place is like $5,000/night. Itās where whatās his face, the Prince stayed. On his honeymoon with Kate.
LIVE IT UP! 
website says 2500-3000 per night
10 grand isnāt going to get your very far lol
Honestly Derek, you have given the soundest advice Iāve ever gotten from anyone around here, and if it werenāt for my pending move to NY with my wife, Iād have already started building an empire in WNY like you have. You got it right, dudeā¦
+1 on the vacation / doing something fun. Donāt do it at 65 when you cant get a boner.
basically what it is but theres a few small differences
this program and other first time buyer programs have been around for a long time in some shape or form, not related to the downturn, I think the 8k credit would be the only obamanomics stimulus for the housing market
The program is funded by the federal home loan bank of new york. suprisingly not through taxpayers either at least according to them, but some of the language from their site below leaves me a bit skeptical
You can use any bank that has partnered with them for this program. (im using m&t right now) you can shop rates up until the last minute between the participating banks but i would imagine switching at the last minute might delay your closing and cause you to lose the sale
btw a first time home buyer is either a real first time homebuyer or someone who has not owned a home for at least 3 years.
its in a normal savings account, the only difference is the bank has you fill out some paperwork to make the account eligible for the program, youre on your own to make the deposits (at least at m&t)
also its recorded as a second mortgage that decays monthly for 5 years, so if you sell before 5 years you owe them whatever percentage of the 5 years you didnt stay for.
other than the income requirements and the class which were already mentioned, there is no catch.
I keep asking myself why does no one do this and how have none of my friends even heard about it? probably because the average person is lazy and does no research until the last minute, and then balks at having to wait ten months before they can buy
1-4 units is fair game, Im in month 9 and about to do the pre approval, cant wait to actually buy the house
im also putting down 20% even though you dont have to. Looking at a 3 or 4 unit between elmwood and richmond. I should be able to live in it for free and possibly even cashflow on top.
From the FHLBNY website:
How We Help Low-Income CommunitiesEach year since 1990, the HLB has contributed 10% of its income to the Affordable Housing Program (AHP). This program subsidizes long-term financing for very low-, low-, and moderate-income families. The HLB also offers Community Lending Programs and the First Home Clubs, a grant program for first-time homebuyers.
The Federal Home Loan Bank SystemThere are 12 district banks within the Federal Home Loan Bank System, located in Atlanta, Boston, Chicago, Cincinnati, Dallas, Des Moines, Indianapolis, New York, Pittsburgh, San Francisco, Seattle, and Topeka, altogether having a membership of over 8,000 financial institutions.
The Federal Home Loan Banks are all privately capitalized and operated by their member stockholders. They receive no taxpayer funding and raise their funds by issuing debt instruments in the capital markets.The System is supervised by the Federal Housing Finance Agency, which ensures that the Federal Home Loan Banks operate in a financially safe and sound manner, remain adequately capitalized and able to raise funds in the capital markets, and carry out their housing finance mission.
Spend it with a reputable home improvement contractor.
Ya I did the same thing. Kinda bittersweet. Haha.
LOL
So what happens if I donāt want to buy a home with the money?
Yeah luckily they look at your last years W-2ā¦ I got my 3 million dollar raise right at the beginning of last year too so I should be fineā¦
read my post, it covers that and everything else, its a normal savings account that you have 100% control over
although didnt you say you already own a home?
if so you arent elligible
if youre really making more than 54k I was told they check current pay stubs right before closing to make sure you are still elligible, not sure if thats correct though
Not in my name yet, so technicially I donāt āownā it.
havent read the rest of the thread but TRUST THIS MAN