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First-time homebuyers often face multiple hurdles when attempting to make their first purchase. New York state offers various programs to help new buyers, including down-payment assistance and loan products with interest rates below the average mortgage rates in New York.
New York City borrowers can get up to $40,000 toward their down payment or closing costs when purchasing a home in one of New York City’s five boroughs. Buyers can use the forgivable loan — offered by the NYC Department of Housing Preservation and Development (HPD) — on the purchase of one- to four-family homes, condos or co-ops.
Eligible applicants include first-time buyers purchasing a home in one of the five boroughs of New York City to use as a primary residence. Buyers must remain in the home for at least 10 years.
The borrower’s income must be at or below program limits, ranging between $63,700 and $120,100, depending on family size.
The State of New York Mortgage Agency (SONYMA) offers a low-interest rate program to first-time buyers. Loans are 30-year, fixed-rate mortgages and can be used to purchase one- to four-family homes, condos or co-ops. Borrowers can put as little as 3% down and combine the loan with the agency’s down-payment assistance.
First-time buyers (except for eligible military veterans and buyers purchasing a property in a designated area) must purchase the home to use as a primary residence. Borrowers can contribute as little as 1% of the purchase price from their own funds (3% is required if purchasing a co-op).
The borrower’s income must be at or below program limits, ranging between $68,080 and $141,790, depending on family size and county. The property price and value can’t exceed program limits, ranging between $294,600 and $1,598,190, depending on the property type and county.
This SONYMA program combines a 30-year, fixed-rate loan with the agency’s down-payment assistance. In addition to covering the down payment, borrowers can also use the assistance for closing costs or to pay the loan’s mortgage insurance premium upfront. Buyers can use this loan for one- to four-family homes, condos or co-ops. Income limits apply.
First-time and repeat buyers are eligible, but the home must be the primary residence and borrowers must have a minimum credit score of 620 (680 for two- to four-family homes).
The maximum loan amount ranges from $548,250 to $1,054,500, depending on the property type.
Another program available to New York buyers is SONYMA’s Low Interest Rate program. This loan option features competitive interest rates, low down-payment requirements and higher income limits than the agency’s other programs. Borrowers can use the 30-year, fixed-rate mortgage to finance a one- to four-family home, condo, co-op or manufactured home.
Eligible applications include first-time buyers (with the exception of eligible military veterans and buyers purchasing a property in a designated area) who are purchasing the home to use as a primary residence.
Borrowers can contribute as little as 1% of the purchase price from their own funds (3% is required if purchasing a co-op).
The borrower’s income must be at or below program limits, ranging between $85,100 and $177,240, depending on family size and county. The property price and value can’t exceed program limits, ranging between $294,600 and $1,598,190, depending on property type and county.
Learn more:
→ 12 First time homebuyer programs
→ FHA loan limits in New York
