Are closing costs keeping you on the sidelines in Bay Shore? You’re not alone. Many first-time and move-up buyers can afford the monthly payment but struggle to cover upfront cash. CDCLI’s down payment and closing cost assistance can bridge that gap if you qualify and plan ahead. In this guide, you’ll learn how CDCLI programs work, what to verify for Bay Shore homes, how to pair assistance with your primary mortgage, and the timing steps that keep your purchase on track. Let’s dive in.
Information in this article reflects program features commonly seen in Nassau and Suffolk County and is intended as guidance, not legal or lending advice. Program terms change. Verify current details directly with CDCLI and your lender as of your application date. Verification date: November 2025.
What CDCLI assistance is
CDCLI is a Long Island nonprofit that administers homeownership assistance for income-eligible buyers in Nassau and Suffolk counties. The help often covers part of your down payment and closing costs so you bring less cash to closing.
What the assistance can look like:
- Second-trust subordinate loans that are deferred or low interest, typically repaid when you sell, refinance, or the loan matures.
- Forgivable loans that reduce over a set affordability period when you stay in the home as your primary residence.
- One-time closing cost grants, which are less common.
- Required homebuyer education and counseling before closing.
Most programs add guardrails such as income and purchase-price limits, primary residence use only, eligible property types, lien recording, and recapture or resale restrictions for a defined period. Always confirm the specific program’s name, limits, and rules directly with CDCLI before you commit.
Bay Shore eligibility checklist
Before you shop in Bay Shore, review these common items that CDCLI programs use to determine eligibility:
Geographic fit
- Confirm Bay Shore in the Town of Islip is within the program’s service area. Some options are countywide, others target specific municipalities or census tracts.
Applicant fit
- First-time buyer status may be required. Many programs define this as no ownership in the last 3 years.
- Household income must fall under program limits that adjust by family size and change yearly.
- Lenders may expect a minimum credit score and a current preapproval.
Property fit
- Primary residence only. Investment properties are not eligible.
- Eligible types often include single-family homes, condos, and sometimes two-family homes. Condos may require project approval.
- Purchase price caps are common. Verify the current limit for Suffolk County.
Assistance and repayment
- Know if your assistance is deferred, low interest, or forgivable.
- Understand when repayment is triggered, such as sale or refinance.
- If forgivable, get the exact forgiveness timeline and any pro rata repayment rules.
Process requirements
- Homebuyer education and counseling must usually be completed before closing.
- Some programs work with an approved lender list or require lender acceptance of the second lien.
- Expect lien recording and title coordination.
Documentation and timing
- Be ready with tax returns, pay stubs, ID, lender preapproval, and later your purchase contract.
- Align DPA approval timelines with your lender’s underwriting and rate lock.
Pair CDCLI with your mortgage
Lender acceptance and second lien
Ask your lender upfront whether they accept CDCLI subordinate financing and what documentation they need. Most CDCLI assistance is recorded as a second mortgage. Your primary lender must underwrite with that in mind.
DTI and underwriting
Confirm whether your assistance has any required monthly payment. If it is fully deferred with no monthly payment, many underwriters do not add it to your debt-to-income ratio. Still, policies vary, so run the numbers both ways with your loan officer.
LTV, PMI, and pricing
Assistance increases your effective down payment and can lower the first mortgage loan-to-value. That can reduce or eliminate private mortgage insurance or help you qualify for better rate tiers tied to LTV. Ask your lender how they calculate combined LTV when a second lien is present.
Repayment and refinance planning
Selling or refinancing usually triggers repayment if the assistance is not fully forgiven. If you plan to refinance in a few years, confirm whether the DPA must be paid off at that time and how that affects your refinance options. For forgivable loans, get the schedule so you know the cost of selling before full forgiveness.
Timing and closing coordination
DPA approval often follows your primary loan underwriting and a signed contract. Confirm the DPA commitment timeline relative to your mortgage rate lock and closing date. Your lender, CDCLI, title company, and closing attorney must coordinate lien recording and fund disbursement.
Cost-benefit comparison
Balance the benefit of lower cash to close against any long-term costs. If your DPA carries interest or a repayment obligation, estimate the payoff at your expected sale or refinance date. Include any PMI savings from the lower LTV. A simple break-even analysis can clarify your best path.
Bay Shore factors to keep in mind
Property type and condo review
Bay Shore offers single-family homes, multifamily options, and condominiums. If you are considering a condo, confirm the project’s eligibility and any association requirements early.
Flood zones and insurance
Parts of Bay Shore are near the waterfront and may be in designated flood zones. Flood insurance can change your monthly payment and your DTI. Ask your lender to estimate flood insurance if the property is in or near a flood area, and confirm your coverage needs before you make an offer.
Commute and resale planning
Access to the LIRR Bay Shore station and nearby highways can support long-term demand and your resale plans. If your assistance has a resale or forgiveness period, align it with how long you expect to live in the home.
Layering with local programs
CDCLI sometimes partners with county or town housing offices. Some programs can be combined, while others cannot. Check stacking rules with CDCLI and your lender, and get written approvals before you go under contract.
Your step-by-step path
- Get preapproved
- Speak with your lender, review budget, and request written confirmation that the lender accepts CDCLI assistance.
- Contact CDCLI or an approved lender partner
- Request the current program factsheet, eligibility criteria, and commitment timeline for Suffolk County.
- Complete homebuyer education
- Enroll early so your counseling certificate is ready well before closing.
- Gather and submit documentation
- Tax returns, pay stubs, ID, bank statements, and any documents CDCLI specifies.
- Shop with confidence in Bay Shore
- With numbers in hand, focus on properties that meet both lender and program requirements.
- Lock in your DPA commitment
- After contract signing and loan underwriting milestones, secure the CDCLI commitment to keep closing on schedule.
- Coordinate closing details
- Ensure your lender, CDCLI, title company, and attorney agree on lien recording and fund disbursement.
- Know your obligations after closing
- Track any affordability period, occupancy requirements, and forgiveness milestones, especially if you plan to sell or refinance.
Example: How assistance changes the math
The numbers below are illustrative only. Use your lender’s live pricing and CDCLI’s current program sheet to run your scenario.
- Purchase price: 400,000
- Your cash on hand: 20,000
- CDCLI assistance: 10,000 (hypothetical example)
- First mortgage down payment: 30,000 total when you combine your cash plus assistance
Impact you might see:
- Lower first-mortgage LTV because the effective down payment is higher.
- Possible PMI reduction or removal, which can lower your monthly payment.
- If the 10,000 assistance is a deferred second with no monthly payment, your qualifying DTI may improve compared to bringing all funds yourself.
- If repayment is due at refinance or sale, set a reminder to review payoff estimates before you list or apply to refi.
Again, replace these placeholders with your actual loan pricing, PMI quotes, and the current CDCLI program terms.
Pitfalls to avoid
- Assuming every lender accepts CDCLI. Always get written confirmation early.
- Waiting to start counseling. Delayed certificates can push your closing.
- Overlooking condo or flood insurance requirements. These can affect eligibility and affordability.
- Missing the forgiveness timeline. Selling too soon can trigger repayment.
- Not aligning timelines. DPA commitments and rate locks must fit your contract dates.
Ready to explore whether CDCLI assistance can help you buy in Bay Shore? If you want tailored guidance on eligibility, timelines, and property fit, let’s talk. Connect with Unknown Company to Schedule a Free Consultation. Services are available in English, Spanish, and Portuguese.
FAQs
What is CDCLI down payment and closing cost assistance?
- CDCLI is a Long Island nonprofit that offers income-based programs to help eligible buyers cover part of their down payment and closing costs using subordinate or forgivable loans, and it often requires homebuyer education.
Who qualifies for CDCLI in Bay Shore, Suffolk County?
- Typically, income-eligible buyers purchasing a primary residence within the program’s geography who meet first-time buyer rules (if required), credit standards, and property caps; verify current criteria with CDCLI.
How much assistance can I receive from CDCLI?
- Maximum amounts vary by program and change over time; request the latest CDCLI factsheet for current dollar limits or percentage calculations in Suffolk County.
Is CDCLI assistance a grant or a loan?
- It is usually a deferred or low-interest subordinate loan or a forgivable loan over a set period, and unrestricted grants are less common; review the specific program document.
Will using CDCLI affect my mortgage approval?
- It can help by lowering your cash-to-close, but your lender must accept the subordinate lien and will decide how to treat it in DTI and LTV, so confirm policies in writing.
Do I have to repay the assistance?
- Repayment depends on the program structure; some loans are forgiven over time while others are due at sale, refinance, or maturity, often with pro rata rules if you sell early.
Can I combine CDCLI with state or local programs?
- Sometimes yes, but stacking rules vary and may require approvals from all programs and your lender; verify compatibility before you go under contract.
