Last Updated on August 7, 2022 by Danielle McDonald
Mortgage Assistance for Homebuyers in New York
Nassau County First-time Homebuyer Downpayment Assistance Program
The Nassau County Office of Housing and Community Development awarded $500,000 in federal HOME investment Partnerships (HOME Program) funding dedicated to the First-time homebuyer down payment assistance program.
Eligibility Requirements
The First-time Homebuyer Down Payment Assistance Program is only for first-time homebuyers. Therefore, it is exclusive for those who have never owned a home in the 3 years immediately preceding the purchase with HOME assistance funding. In addition, the applicant must have a minimum annual household income of $30,000 (overtime and assets are also considered). They must also attend a mortgage counseling session, and qualify for a mortgage.
Property Guidelines
The borrower must use the home purchased using program funds as their primary residence. Pre-existing or newly constructed single-family dwellings are eligible property types. It also includes townhouses, condominiums, co-operative apartments, and manufactured homes. Moreover, the Maximum Appraised Value of all properties must not exceed $409,000.
Income Limits
- 1-person household: $65,350
- 2-person household: $74,700
- 3-person household: $84,000
- 4-person household: $93,350
- 5-person household: $100,850
- 6-person household: $108,300
- 7-person household: $115,750
- 8-person household: $123,250
City of Schenectady First Time Home Buyers’ Program
The City of Schenectady established the the First Time Home Buyers’ Program, also known as the Second Mortgage Program. This is to assist qualified applicants in buying their first home.
Available Assistance
Eligible applicants may receive a down payment and closing cost assistance up to 10% of the purchase price of the property under the First Time Home Buyers Program. The funds come as a loan with 4% interest over a 5-year period. Then, 75% of the assistance is allowed to be converted into a grant if the borrower lives in the property for 5 years.
Eligibility Requirements
All applicants must be first-time homeowners, and have a mortgage commitment of at least 90% of the purchase price from a lender to qualify for the program. The total household income of the applicant must also be within the HUD guidelines for low- to moderate-income households (limits are listed below).
Property Guidelines
The property purchased using program funds must be the borrower’s primary residence. It must also be within the city limits of Schenectady.
Income Limits
- 1-person household: $50,350
- 2-person household: $57,550
- 3-person household: $64,750
- 4-person household: $71,900
- 5-person household: $77,700
- 6-person household: $83,450
- 7-person household: $89,200
- 8-person household: $94,950
This is similar to the FirstHome programme that is one of the first-time homebuyer assistance programs in New Mexico.
Albany County Rural Housing Alliance Acquisition Grant
ACRHA grants are in the form of forgivable loans that can be used to help with home purchase and renovation. 51 percent of the grant must be used for rehabilitation/repair of the purchased home while the other 49 percent must be used for down payment and/or closing costs.
Available Assistance
A forgivable loan is available to help with the purchase or repair of a house. 51 percent of the grant must be used for rehabilitation/repair of the purchased home while the other 49 percent must be used for the down payment and/or closing costs. Each case is considered individually and the amount of assistance awarded will be determined.
Eligibility Requirements
In order to be considered eligible for the ACRHA Acquisition/Rehabilitation Grant, all applicants must meet certain requirements. Only first-time homebuyers who have an annual household income that is below the HUD’s limit based on their household size are eligible for this program. They must also complete an approved homeownership education course and adhere to asset limits. Potential applicants must be mortgage ready. They must have a credit report or start a credit repair program. All applicants must contribute $1,500 to the purchase of a home and sign a note lasting up to 10 years.
Property Guidelines
The applicant must make the home their primary residence. The following property types are eligible: Existing single- or double-family residential properties in the target area. Mobile homes are not allowed, but applicants who live in a mobile home and wish to buy a stick-built home will have priority. Property must need moderate rehabilitation before being inspected by a NYS licensed home inspector. The property must meet the appraisal criteria of the mortgage lender.
City of Albany Home Acquisition Program (HAP)
The Home Acquisition Program (HAP) offers financial assistance to households with low incomes and low annual incomes. A first-time homebuyer can use funds to pay the down payment or closing costs for the property.
Available Assistance
The HOME Investment Partnership ACT Program (HOME) funds the program. The funds can be used to pay the down payment or closing costs of the house, but not for any other property improvements than code compliance requirements, additions of rooms, taxes, water bills, homeowners insurance, or room extensions.
Eligibility Requirements
The applicant must be a first-time buyer and live in the property for the entire term of the HAP mortgage. Repayment is a requirement in the event of non-occupancy or resale. This program is not available to homebuyers who have assets greater than $40,000. Assets can include checking accounts, savings, certificates of deposits, certificates of deposits, IRA and 401(K), stocks, bonds and others.
Income Limits
The income of eligible applicants must not exceed 80 percent of the median household income within six months of service delivery. Otherwise, it must be up-to-date.
- 1 person household: $46,550
- 2 person household: $53,200
- 3 person household: $59,850
- 4 person household: $66,500
- 5 person household: $71,850
- 6 person household: $77,150
- 7 person household: $82,500
- 8 person household: $87,800
Property Guidelines
The property must fall within the following purchase price limits:
- One-family unit: $178,600
- Two-family unit: $228,647
- Three-family unit : $276,380
- Four-family unit: $343,473
First Time Home Buyers Program
This program can be referred to as a second mortgage. It provides qualified applicants with a loan up to 10% of the property’s purchase price to help them meet their down payment requirements. The interest rate on the loan is 4 percent and has a term of 5 years.
Homebuyer Down Payment Assistance
Homebuyer Incentive Programs (HIP) offer $15,000 and $20,000 in assistance to income-eligible applicants to encourage homeownership in Troy. All applicants for the Troy Rehabilitation and Improvement Program must be first-time homebuyers.
Eligibility Requirements
TRIP stipulates that applicants must be first-time buyers, have an income below the area median of $85,000, and have at least $1,500 saved. Before applying for down payment assistance, they must have completed the pre purchase program. The applicant must not have a home purchase contract at the time they apply and must agree to 10-year grant enforcement.
Income Limits
- 1 person household: $46,550
- 2 person household: $53,200
- 3 person household: $59,850
- 4 person household: $66,500
- 5 person household: $71,850
- 6 person household: $77,150
- 7 person household: $82,500
- 8 person household: $87,800
Property Guidelines
A home must be owned-occupied and contain one or more units. The purchase price of the property must not exceed 95 per cent of the Capital Region median purchase price as determined by HUD. It must also be located within the City of Troy. Inspection of the property is a requirement to determine whether it meets Code Compliance and Lead-Based Paint Hazards.
Homebuyer Dream Program®
Participants can receive a grant of up to $9,500 toward closing costs and a down payment through the Federal Home Loan Bank of New York’s Homebuyer Dream Program. This program is available to first-time homebuyers which were given an approval by their community-member lenders. The program also offers $500 toward homeownership counseling.
Available Assistance
Participants can receive a grant of up to $9,500 toward closing costs and a down payment through the Federal Home Loan Bank of New York’s Homebuyer Dream Program. This program is available to first-time homebuyers which were given an approval by their community members lenders.
Eligibility Requirements
The HDP grants funds to help with closing costs assistance and down payment.
- First-time homebuyer
- The area median income for total household income is 80% or less
- Completely execute the Purchase and Sale Contract
- Minimum equity contribution of $1,000 to purchase eligible property within the FHLBNY district
- Completion of homeownership counseling
- Closing of the 5-year retention agreement
This program provides financial assistance to qualified applicants who want to purchase a home, but cannot afford the upfront costs. It includes the down payment and closing costs. These costs can be quite expensive and people might find themselves stuck in a rental situation if they are unable to pay them.
NY State Association of Realtors Housing Opportunities Foundation
New York State’s NYSAR Housing Opportunities Foundation, Inc. provides homebuyers with the opportunity to apply for a grant. This grant is to help with closing costs or down payments. Housing Opportunities Foundation Individual Grant Program comes in the form of a gift. Repayment is not necessary.
Available Assistance
This assistance is in the form of a grant that does not have to be repaid and is available to families with low or moderate incomes in New York. Homebuyers that qualify will receive help with down payments and closing costs, through a $2,000 gift. The grant will not be awarded to applicants who close before the funds are allocated. After final approval by Foundation, grant funds will remain available for 120 days.
Eligibility Requirements
The State of New York Mortgage Agency, (SONYMA) defines first-time homebuyers. Anyone who owned a primary residence in the three years preceding the application date is not eligible. Non-eligible are also those who have a vacation home or investment property. The SONYMA Low Income Rate Program targets income limits for the county. To be eligible for the grant, applicants must use a realtor. However, they do not need to apply for a SONYMA loan. Ineligible are realtors who represent themselves in a home-buying transaction.
Property Guidelines
The applicant must use the home as their primary residence. The maximum purchase price for a home must not exceed 110% of the SONYMA Low-Interest Rate Program’s limit for county purchase prices.
Rensselaer County Homebuyer Program
The Troy Homebuyer Incentive Program, (HIP), makes funds available to help with down payment and/or closing costs through the Rensselaer County Homebuyer Program.
Eligibility Requirements
The applicants must be first-time homebuyers. They must also have at least $1,500 of savings. Before applying for down payment assistance, applicants will need to sign a 10-year grant enforcement lien.
Property Guidelines
The Rensselaer County Homebuyer Program requires that the property be single-family and owner-occupied. The property must be in Rensselaer County but not Troy’s City Limits. The purchase price cannot exceed 95 percent of HUD’s median Capital Region value.
Income Limits
Applicants must be at or under 80 percent of the HUD area median income as shown below:
- 1 person household: $46,550
- 2 person household: $53,200
- 3 person household: $59,850
- 4 person household: $66,500
- 5 person household: $71,850
- 6 person household: $77,150
- 7 person household: $82,500
- 8 person household: $87,800
State of New York Mortgage Agency Down Payment Assistance Loan
The State of New York Mortgage Agency’s (SONYMA), Down Payment Assistance Loan (DPAL) is available to all buyers who have a SONYMA Mortgage Program. They can use it to provide the initial financing needed for a home purchase.
Available Assistance
DPAL is a no-interest loan that requires no monthly payments. After 10 years, the entire loan has the possibility to become forgivable. Minimum assistance amount is $1,000. Maximum loan amount is 3% of purchase price (up to $15,000 or $3,000), whichever is greater.
You’ll need to repay the whole or a part of your down payment assistance loan if you sell or refinance your mortgage. Each month that you reside in the property, the amount subject to repayment will have a reduction of 1/120. If the proceeds of the sale of your property are not sufficient to repay any amount, the deficit is forgivable.
No matter which SONYMA program your application is for, you must contribute a minimum cash amount of 1% to the property’s value (3% for cooperatives or 3- and 4-family properties). You cannot use the DPAL with a SONYMA Mortgage, but you can use it for any type of property eligible under your selected mortgage program, even cooperatives.
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