Living in New York City, you probably know that property doesn’t come cheap. The median value of a home in the area is a daunting $486,200, and prices are only expected to rise over the course of the next few years. The cost of living is also high, at 22% above the national average, leaving you with less cash each month to spend on your mortgage.
With all of these financial obstacles, buying your own property in NYC may seem like an impossible task, but luckily, you aren’t alone. Some prospective buyers will turn to their parents who may choose torelease equity from the family hometo help out with a house deposit. However, there is also assistance available for those who aren’t able to rely on family. State and federal programs can help first-time homebuyers to purchase their dream house without having to worry about a hefty down payment. If you’re thinking of buying your first home in New York City, there are a couple of ways that you can finance your decision.
FHA loans are insuredby the Federal Housing Administration and protect lenders from financial risk. The FHA backs any loans that an approved lender issues, in case a borrower defaults on the mortgage, which allows buyers who might otherwise be considered risky, such as low-income individuals, to qualify for loans with affordable interest rates.FHA mortgage lending limits in New York Cityvary based on the borough, housing types available, and the cost of local property. If you are looking to have a house appraised for a loan, you can finddozens of qualified appraiserslocated around the NYC area.
The State of New York Mortgage Agency (SONYMA) helps new homeowners to afford their first property, even for low-income couples. This makes it possible for New York residents who are in school, recently graduated, or newly wed to purchase a home even though they haven’t had much of a chance to build up a savings accounts. SONYMAoffers five mortgage programsthat feature competitive interest rates, low down payment requirements, flexible underwriting guidelines, no prepayment penalties and down payment assistance.
- Low-Interest Rate Program: SONYMA’s standard mortgage program offers support for individuals buying a newly constructed or existing home.
- Graduate to Homeownership Program: Recent college graduates can access low-interest rate mortgages, down payment assistance, and homebuyer education resources.
- RemodelNY: Find competitive interest rate financing to buy a home and pay for any necessary repairs.
- Achieving the Dream: Low-income first-time homebuyers can apply for the lowest interest rates found in any SONYMA program.
- Construction Incentive Program: Buy a home under construction or being renovated at an affordable rate.
- Homes for Veterans Program: Eligible U.S. military veterans and active duty U.S. military personnel can apply for any of SONYMA’s loan programs and receive even more favorable terms.