First-Time Home Buyer Programs
Buying a Home can be expensive and frustrating but with First-Time Home Buyer Programs, it can be less of a hassle for new home buyers. First-Time Home Buyer Programs are offered to buyers looking to become homeowners for the first time. There are quite a few programs so it is important to find the right program for you! For example, if you’re a newly graduated college student, a veteran or even just a buyer with a dream, there are different programs that might suit you best. The State of New York Mortgage Agency (SONYMA) offers a few programs that are put together to help make home buying more affordable for a first time buyer. These programs are financed through the sale of tax exempt bond.
- A Conventional Mortgage is a loan which is not guaranteed or ensures by the Federal Government. Conventional Mortgages comply with the requirements that are set in place by Fannie Mae and Freddie Mac which authorizes a down payment for as low as 3% for first time buyers. Conventional mortgage differs from FHA as the loan borrower can eventually cancel their mortgage insurance or avoid the insurance if the newly anticipated buyers puts a down payment of at least 20%.
- Many first time home buyers go along with FHA (Federal Housing Administration) which allows buyers with lower credit scores to become homeowners. FHA allows a 3.5% down payment for those with 580 or higher credit score. Even though buyers are technically able to purchase a home with credit scores as low as 500, they would have to put a down payment of 10%.
- The Veterans Affairs Program is a program designed to help Veterans become homeowners. This type of loan does not require a down payment or mortgage insurance. Although there is no official minimum credit score, most of the loans that are approved by the lenders require the buyer to have a score of at least 640.
- The USDA Home Loan Program is designed for eligible buyers that are located in rural and suburban areas. The loan is a zero-down payment loan and is provided by the United States Department of Agriculture through the USDA Rural Development Guaranteed Housing Loan Program. This type of loan varies by region and is income limited.
- The Achieving the Dream Program is designed for lower income, first time buyers. Borrowers often receive a lower interest rate and a lower down payment.
- The Graduate to Homeownership Program is a program specially designed to help newly graduated college students become homeowners. SONYMA supplies down payment assistance, favorable interest-rate loans and home purchasing education to potential borrowers.