New York Down Payment Assistance Programs

New York down payment assistance programs
New York down payment assistance programs

Several NY agencies sponsor New York down payment assistance programs.

One of the agencies is the New York City Department of Housing Preservation and Development. This agency initiated a program known as Home First Down Payment Assistance, which aids potential homebuyers with up to fifteen thousand dollars to fund the closing cost or down payment on a one to four family housing, a cooperative, or a condominium in any of the New York City’s five boroughs. To be eligible for this program an individual should meet the criteria set.

The State of New York Mortgage Agency (SONYA) is another example of many agencies supporting first-time homebuyers and low to middle-income individuals. This agency provides mortgage programs to support individuals who are buying homes for the first time to buy housing in New York State. They make homes more affordable by providing mortgage programs, which require low down payment, and guidelines underwriting are flexible. In these programs, there are no penalties for prepayment, interest rates are attractive. State of New York Mortgage Agency provides applicants with down payment assistance in addition to their financing. The Down Payment Assistance Loan offered by SONYMA is interest free and there are no monthly charges. Borrowers are entitled to forgiveness upon elapsing of ten years period strictly, if they continue to being loyal to SONYMA financing and they still own or occupy the same property they acquired through SONYMA assistance.

Although SONYMA programs are geared towards assisting low-income earners, it is not limited to first-time homebuyers. The programs also provide impetus for buying housing located in areas legally marked as target. There are many loan programs offered by State of New York Mortgage Agency (SONYMA). When deliberating on which program to go for it is important to consult with a qualified SONYMA expert.

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Achieving the Dream Program Achieving the Dream Program is geared towards low income first time home buyers. The 30 year loan offers very low interest rates which can be used to finance one and two family properties (which include condos, co ops, and manufactured homes attached to real property). There are no prepayment penalties through this program. Additionally, New York down payment assistance can be provided up to $15,000. A New York borrower must contribute 1 percent to the New York down payment costs.

Conventional Plus Program Conventional Plus Program is for both first time home buyers and repeat buyers alike. This New York down payment program features a conventional 30 year fixed rate mortgage combined with New York down payment assistance up to 3 percent of the purchase price. New York borrowers must have a job, good credit and assets to cover at least a portion of the New York down payment and/or closing costs. New York borrowers must meet income limits.

Down Payment Assistance Loan Program This New York down payment program can be paired with many of the programs listed above. This second loan ranges from $1,000 to $15,000 depending on circumstance. The payments are deferred, and after 10 years of home ownership the loan will be completely forgiven. The interest rate for first mortgages that have DPAL assistance will be 0.375 percent higher than the interest rate for loans without New York down payment assistance, except on the Homes for Veterans and EnergyStar Programs. A new wrinkle to this program: The SONYMA DPAL can now be used to pay all or a portion of a one time mortgage insurance premium, if applicable, thus significantly reducing your monthly mortgage payment.

Energy Star Label Homes Program This New York down payment program offers interest rates that are 0.375 percent lower than their standard interest rates for first mortgage loans, coupled with New York down payment assistance, as part of the Energy Star Label Homes Program. Homes must be newly constructed with the Energy Star Label or existing properties in need of energy efficient improvements. The New York down payment assistance caps at $15,000, and the loan does not entail points or origination fees.

FHA Plus Program This New York down payment program offers a 30 year fixed rate FHA mortgage combined with New York down payment assistance. New York borrowers must contribute at least 1 percent of the loan amount towards the transaction. New York borrowers must have a job, good credit and meet income and purchase price limits.

Homes for Veterans Program Home for Veterans Program often offers interest rates lower than the state’s standard rates. Homes for Veterans is coupled with New York down payment assistance that caps at $15,000. New York borrowers do need to contribute 1 percent to 3 percent To be eligible.

Low Interest Rate Program This New York down payment program is for first time home buyers. They can take advantage of the Low Interest Rate Program which offers competitive fixed rates on low New York down payment mortgage financing. Income and purchase price rates will be assessed depending on where in New York a home buyer is purchasing. Buyers can finance up to 97 percent of the home’s value.

Remodel Program This New York down payment program is for first time home buyers interested in buying homes that need restoration should look into Remodel New York. Financing for the purchase price of the home and the cost of estimated renovations can be covered up to 97 percent; the remaining 3 percent of financing needs to come directly from the New York borrower. Financing comes in the form of a 30 year fixed rate loan. If a New York borrower cannot put New York down at least 20 percent New York down, New York borrowers must purchase private mortgage insurance. Only certain repairs are included under this program: plumbing, electrical, heating, siding, or other must fix items. Remodel New York can be paired with the New York down payment assistance program.


Regardless of which type of down payment program, you will first need a mortgage. Below are mortgages that require low or no down payments:

No Down Payment Mortgages – mortgages that require no down payment

USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.

VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.

 

Low Down Payment Mortgages – mortgages that require up to 3.5% down payment

FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.

Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.

The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.

More places to find assistance on down payment:

HUD Programs

The US Department of Housing and Urban Development (HUD) offers the following programs:

Good Neighbor Next Door Program

The Good Neighbor Next Door Program was created by U.S. Department of Housing and Urban Development (HUD) to help law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians buy homes. The biggest benefit of the Good Neighbor Next Door Program is the 50% discount of the home’s list price. The only catch is that the home owner must commit to live in the property for 36 months as their sole residence.

To learn more about the Good Neighbor Next Door Program, click here.

Section 184 Loan – The Indian Home Loan Guarantee Program

The Section 184 Indian Home Loan Guarantee Program is a mortgage for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In 1992 Congress created this program to help Native American Communities with homeownership.

Section 184 loans helps borrowers buy homes with a low down payment and flexible underwriting. Moreover, the loan does not need to be used only on properties on native lands. Purchase of an existing home for single-family residences. Also allowed are new construction, rehabilitation, and refinance.

To learn more about Section 184, click here.

New York Housing Agencies

New York housing agencies are your best resource for down payment assistance programs. Through funding from HUD, the purpose of these agencies is to ensure that affordable housing is available for everyone.