The Federal Home Loan Bank of New York this month doubled, to $2 million, its aid for first-time homebuyers.

Members of the First Home Club are required to keep a savings account for at least 10 months with a bank or thrift participating in the program. The institution, in turn, will contribute up to $5,000 to the borrower's account by adding up to $3 for every $1 the customer saves toward homeownership.

The banks also will cooperate with neighborhood groups to provide counseling for the borrowers.

Twenty-two lenders in New Jersey, New York, and Puerto Rico are participating in the First Home Club. The program began with a pilot program at Roosevelt State Bank in Garden City, N.Y., but is now available to any of the Home Loan bank's members.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.