Home$tretch Loan Program

In order to help individuals achieve their dreams of homeownership, the Wyoming County Development Authority (WCDA) launched the Home$tretch Loan Program, which helps potential homebuyers cover down payment, closing costs, and prepaid items with assistance in the form of a deferred loan.

Available Assistance
The Home$tretch Loan Program provides eligible applicants with a zero-interest (0.080 percent APR based on an average loan amount of $5,500) second mortgage of up to $10,000. There are no monthly payments required, and the loan only needs to be repaid upon sale of the property, refinance, or 30-year maturity. These loans are offered in conjunction with WCDA first mortgage purchase loans through WCDA participating lenders only.

Eligibility Requirements
The Home$tretch Loan Program is available to any first-time borrowers financing their homes with the WCDA’s Standard First Time Homebuyer Program. All applicants must make a minimum cash contribution of $1,500 (This amount may be a gift).

To be considered eligible for the program, and they must also maintain a credit score of at least 620, and have a maximum total debt-to-income ratio of 41 percent. Additionally, it is mandatory for all Home$tretch Loan borrowers to complete WCDA’s regular Homebuyer Education Class, as well as the One-on-One Counseling class.

Note: Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits.