Rochester NY First Time Home Buyer Programs

There's a lot of things you have to consider when buying a home, especially if you're a first time home buyer. It's normal to have many questions inquiring about everything you need to know.

If you're a Rochester NY first time home buyer there are many programs available for first time home buyers including, SONYMA which has special programs it offers to first time home buyers.  SONYMA will consider you if you are yet to own a primary residence in the past three years.

Staying on a budget is an important aspect for you to consider as a first time homeowner. Having that in mind, there are national, state, and local grants/programs available for you. They're excellent, since they can help you cover a significant amount of closing costs, as well as financing a substantial percentage of loans.

As a Rochester NY first time home buyer, you get a lot of options to choose from when it comes to mortgages. We'll have a look at some of the best Rochester NY first time home buyer programs available to you!

State and Local Programs and Grants for First Time Home Buyers.

Homebuyer Dream Program

 Since it was established in 2019, this program has been a favorite for most people seeking to buy their first house in Rochester. The success of the grant was proven through all of their grant money being accounted for within three weeks after being opened for the first time.

In June 2020, the program introduced the home buyer dream. It was running from June up until September, operating for four consecutive months. In order to secure a spot in the program, you as a first time home buyer in Rochester would have to go under a contract to purchase a home, and the lender would fill the space in the program for that month. Once full, any other buyer would be pushed to the next month.

The program did come back for a third consecutive year in 2021 and there are still limited spots available!  The Home Buyer Dream Program is financed by the Federal Home Loan Bank of New York. It now offers qualified first-time home buyers up to $10,000, down from the previous $15,000 maximum.

One of the greatest advantages of the program is that there is no savings program needed. However, there are some restrictions and requirements which pertain to your work history, your credit score, as well as borrowers' income.

National & State Programs for First Time Home Buyers

USDA Rural Development Program

This is a wonderful program, especially for people who are low and middle income earners. It's also not limited to first time home buyers. The Rural Development Program partners with multiple lenders from different parts of the country in order to finance properties that qualify.

It's important to note the qualifying ratios are a little bit more strict than other mortgage programs available. The rules are; the total debt shouldn't surpass 41%, and the housing costs shouldn't surpass 29%. The loan can also include improvements as well as acceptable repairs.

Therefore, if you're thinking about buying a rural home in New York, the USDA Rural Development Program is a fantastic choice.

State of New York Mortgage Agency (SONYMA)

If you're looking for mortgage programs as a first time home buyer in New York, SONYMA offers a variety of programs. The loans offered are usually financed through the sale of tax exempt bonds. The following are some of the available options:

Home for Veterans program

This is a program offered to U.S. Military Veterans and active U.S. Military personnel by SONYMA, together with the New York State Department of Veterans' Affairs. It helps the veterans to buy their first homes, and it's also available to those who aren't buying home homes for the first time.

In order to benefit from this program as a first time home buyer, you must reside in New York. The interest rates are low compared to others by SONYMA. As a buyer, you only contribute as low as 1%.

Remodel New York

If you're a first time home buyer, but you're looking into buying a home that needs to be repaired, or if there are any improvements needed, this is the best program for you offered by SONYMA. With this program, only 97% of the loan will be financed. That will be inclusive of the repairs that need to be done, as well as the purchase price.

However, there are renovations that are only eligible for this program that you need to be mindful of. Other requirements include income eligibility, which varies from county to county.

Down Payment Assistance Loan (DPAL)

Down payment and closing costs are some of the most hectic issues to deal with as a first time home buyer. The DPAL program is the best when it comes to providing you with down payment assistance. $1,000 is the minimum amount, and $3,000 is the maximum amount for a purchase price of up to $15,000.

The good thing about it is that the loan doesn't have an interest rate, and you won't do monthly payments. Your loan can also be forgiven if you live in the property for 10 years.

Achieving the Dream

This is a program offered to low income first time buyers with a low down payment mortgage. The cash requirement is 1%, which is considerably low. It includes requirements for income eligibility, and they fluctuate depending on which county you want to purchase a home in.

To wrap up

If you're considering buying a home in Rochester NY, there are several options to choose from. We haven't covered all of them, but these are some of the best you can consider.

It's always advisable to seek professional advice from a qualified buyer's agent. They'll give you excellent advice and give you a step by step guide to buying a house for the first time!  

If you're considering a purchase in the Rochester NY or surrounding area, feel free to contact me and I'd be happy to chat with you about your plans!