Families in the State of New York are about to have access to more than $51 million in funding assistance to buy their first home. Several federal and state-funded programs will be awarding the funds through non-profit organizations and according to locality, and the aim is to increase access to homeownership in New York State.
Aside from these specific grants, there are a number of avenues for first-time buyers to access financial assistance, which are explained below.
$51 Million available to first-time home buyers in New York State
The funding being distributed in the State of New York is intended to reach economically vulnerable recipients and make homeownership more accessible to low-income families, veterans, and people with disabilities. The financial assistance could cover any of these needs:
- Down payment assistance
- Closing costs
- Tenant-based rental aid
- Repairs to and rehabilitation of older homes
A breakdown of the funding awards by region
Funding has been set aside for more than 1,000 households across 10 regions. This is the breakdown of how much is going to how many homes in what regions (in alphabetical order):
- Capital Region – $9,205,500/ 217 homes
- Central NY – $6,145,000/ 104 homes
- Finger Lakes – $2,338,444/ 64 homes
- Long Island – $2,300,000/ 64 homes
- Mid-Hudson – $5,267,000/ 127 homes
- Mohawk Valley – $6,703,777/ 70 homes
- New York City – $600,000/ 44 homes
- North Country – $6,343,600/ 86 homes
- Southern Tier – $7,597,480/ 144 homes
- Western NY – $4,560,000/ 140 homes
Aside from the specific funding detailed above, there are other grants available to first-time home buyers that can help them realize their dreams by providing financial assistance for down payments or even closing costs. These kinds of grants don’t normally need to be repaid as they are facilitated by non-profit organizations and state agencies.
Life in New York isn’t cheap, which is why the state government created a tax relief program to help homeowners save money.
Other types of financial assistance for home buyers
Grants are not the only kind of assistance available to first-time buyers in the United States. Here are other ways to secure your home with payment assistance:
- Forgivable loan: This is a type of debt that doesn’t have to be repaid if the borrower meets certain conditions, such as living in the home for a specific number of years.
- No-interest loan: The borrower doesn’t have to pay any interest on the funds loaned and only pays off the principal amount.
- Low-interest loan: The borrower gets a lower interest rate than standard market rates, making it more affordable to pay off.
- Deferred payment loan: The borrower only has to start paying off the loan later, ideally when they have more financial security, or when the home is sold, paid off, or refinanced.
- Second mortgage: This is a loan taken out in addition to an original mortgage, and this is often a strategy to pay off closing or down payment costs.
Eligibility criteria for first-time homeowner grants
It takes a lot of effort to qualify for the grant programs, but they are a legitimate and accepted method to secure your first home. All programs have their own eligibility criteria, such as household income thresholds, region restrictions, and minimum credit scores. These kinds of grants could be a few thousand dollars up to a percentage of the property’s purchase price, depending on the program and the buyer’s financial situation.
Here are the most common eligibility requirements to qualify for a home purchase grant:
- The applicant must meet the definition of a first-time home buyer, which typically means they have not owned a home in a minimum of three years.
- There is usually a household income limit, for instance, 80%, 100%, or 120% of the area median income (AMI).
- The buyer usually has to be purchasing a primary residence, not a second home or property for investment.
- There is usually a minimum credit score requirement in place, typically from 620 to 680.
- Home buyers normally have to complete a home buyer education course.
- There is often a maximum price limit on the home purchased.
- Buyers typically have to make some kind of contribution of their own, such as a 1% down payment.
For people who don’t qualify for grants but still want to make good financial decisions, there are a number of ways to save your money and avoid paying tax on the interest.
