How much does it cost to buy a home in New York? With the median home listing price for the state being $411,000, it pays to know about first time home buyer grants in NY.
Here’s a list of grants open to New York resident looking for down payment and closing cost assistance programs.
Take note that these grants are specific to the state of New York. Check out this article on 11 First Time Home Buyer Grants You Need to Know for grants available throughout the country.
First Time Home Buyer Grants NY for Home Purchases Anywhere in New York
First time home buyer grants NY can be statewide or it may be limited to residents or homebuyers in a particular city or county. For statewide grants, here are some programs you may qualify for.
NYSAR Housing Opportunities Foundation, Inc
If you are working with a realtor for an owner-occupied loan, you may be able to qualify for a grant from NYSAR Housing Opportunities Foundation, Inc for first time home buyers. The organization provides grants amounting to $2,000. Another thing to note is that this grant should be applied to the down payment and closing costs.
To qualify, your income must be within 110% of SONYMA’s defined income limit. The property’s price must also be within 110% of SONYMA’s purchase price limit.
SONYMA’s Down Payment Assistance Loan
The Down Payment Assistance Loan (DPAL) extended by SONYMA is a forgivable 0% loan with a 10-year retention period. The value of the grant is the higher amount between $3,000 and 3% of the purchase price with a $15,000 price cap.
While DPAL is attractive there’s a catch. Unless you are taking out a loan under the ENERGY STAR program, Graduate to Homeownership or Homes for Veterans, the mortgage for the attached account will be 0.375% higher.
Bonus Tip: Ask your SONYMA lender if they offer DPAL. Not all lenders offer this grant.
Federal Home Loan Bank First Time Home Buyer Grants NY
The Federal Home Loan Bank of New York (FHLBNY) offers different grants to residents of New York. Here are two programs that might benefit first time home buyers in New York.
First Home Clubs
Under the First Home Clubs program, the bank will match every $1 deposited to a members account with $4. The maximum matching funds are $7,500 per household. Matching funds should only be used for down payment and closing costs. So, the bank will not match funds deposited in another bank. Moreover, your average median income should not exceed 80% for your household size to be eligible. You can find the full guidelines for the First Home Clubs program at the FHLBNY’s website.
Home Buyer Dream Program
Home Buyer Dream Program is another grant from the FHLBNY. For this grant, you can receive as much as $14,500 for households with an income of at most 80% of the AMI. The grant also comes in the form of a forgivable loan.
You can use this fund for one-to-four family dwelling, condominiums, co-ops, and manufactured houses. The loan has a five year retention period, after which the loan will be forgiven. Check out the full guidelines for the Home Buyer Dream Program here.
Grants Open to Specific Areas in New York
When looking for first time home buyer grants, it also makes sense to start with the locality where you plan to purchase a property. Here are some first time home buyer grants for NY state residents administered through the local county or city.
Take note that this is not an all-inclusive list.
Western New York
Employer Assisted Housing Initiative Grant – Rochester
Is your employer participating in the City of Rochester’s Employer Assisted Housing Initiative (EAHI)? If so, you may be eligible for a dollar for dollar match of up to $3,000. Participating employers will have their own guidelines and the term involves living in the property for a minimum of five years.
Central New York
Home HeadQuarters Closing Cost Assistance – Syracuse
If you are planning to purchase a home located in Syracuse and your household income falls within the 80% AMI, you may be eligible for the Home HeadQuarters Closing Cost Assistance.
Under this grant, you may receive up to $4,000 through a deferred loan forgivable after five years. The home you purchase should be your primary residence. Moreover, the property should be a single or two-family home with a value of no more than $120,000.
Community Housing Innovations Renters to Owners- Westchester, Nassau, and Suffolk
Does your income fall within 112% of the Low-Income Limit? Is the property you’re planning to buy is in Westchester, Nassau or Suffolk?
If you answered yes to both questions, you may be eligible for a grant of up to $25,000 from CHI. The assistance comes in the form of a loan which will be forgiven after 10 years.
New York City
HDP HomeFirst Down Payment Assistance
Is your total household income within 80% of the area median income?
If you’re not sure, hop on to the City of New York website to do a quick search. If yes, you may qualify for as much as $40,000 assistance from the Housing Preservation & Development’s HomeFirst Down Payment Assistance. This is one of the first time home buyer grants in NY that applies to properties located in any of the five boroughs in New York City.
Moreover, this assistance comes in the form of a forgivable loan which will revert to 0 after 10 years. Aside from being a first-time homebuyer and the income limits, you also need to complete a homebuyer education course from a counseling agency approved by HDP. In addition, the home you purchased should meet the Housing Quality Standards inspection. The HDP website provides the full guidelines on applying for this grant.
Neighborhood LIFT -Brooklyn, Bronx or Queens
Is the property you’re eyeing located in Brooklyn, Bronx or Queens? If yes, you may be eligible for the Neighborhood Housing Services of New grant which offers up to $20,000 as down payment assistance. But there’s also an income limit you need to meet to qualify for this program.
You may take the eligibility quiz for this grant here.
First Time Home Buyer Grants NY Exist For a Reason
Most first time home buyer grants in New York are for low-income households. So, there’s a higher chance that you will be eligible for a grant if you belong to this category. Needless to say, it’s still worth asking your broker or local housing authority about any grants which may apply to you.
When it comes to buying a house, expect the process to be expensive. Fortunately, there are some grants which may ease the burden but you have to comply with the terms of the grant.
If you are considering how to buy a home but you’re not sure where to start, start with this guide on How to Buy a House.