Buying your first home is a momentous occasion for most families. It’s a substantial financial investment that can be intimidating. Thankfully, there are several types of first-time homebuyer (FTHB) programs available to New York residents. In this week’s blog from Nickel City Funding, our mortgage professionals will go through some of the most popular programs among residents in North Tonawanda, Hamburg, Amherst, West Seneca, and Lancaster, NY. Read more below to see if you meet the basic eligibility requirements for any of the first-time homebuyer programs and learn more about the different benefits of each. When you’re ready to take the next step, contact Nickel City Funding with your questions and to set up a no-obligation consultation.
Nonconventional mortgages are government-backed mortgages designed to help homeowners get approved for affordable home loans with minimal down payments. These programs are popular among FTHBs and seasoned homebuyers alike. Each is designed to help different types of clients:
- VA guaranteed home loans are sponsored by the U.S. Department of Veterans Affairs. They have a 0% down payment requirement and minimal credit requirements. To qualify, you must be a veteran, servicemember, surviving spouse of a veteran, or other qualified candidate who has served the country.
- FHA loans are sponsored by the U.S. Department of Housing and Urban Development. They have as low as 3.5% required down payment and accept clients with 500+ credit scores. FHA loans are subject to income limitations.
- USDA loans are also sponsored by the USDA, but they are designed for clients who are interested in purchasing a home in a rural or suburban area. They have up to 100% financing (no required down payment) and are subject to income limitations, as well.
The State of New York Mortgage Agency (SONYMA) is a state-backed program that provides affordable home ownership exclusively to FTHBs with low to moderate income. They have 1-3% required down payment, low interest rates and flexible terms.
First-time Homebuyer Tax Exemption (North Tonawanda)
Residents of the City of North Tonawanda may be eligible for an FTHB tax exemption for newly constructed primary residential property. This program exempts qualified applicants for up to 50% of their city taxes in the first year, with a 10% reduction in the exemption each year thereafter.
First Time Home Buyer Program (Town of Hamburg)
If you want to purchase a home in Hamburg, the town conditionally grants up to $10,000 for FTHBs. There are maximum income limits for this program, ranging from $41,850 for one person to $78,900 for eight or more people.
First-Time Homebuyers Program (Town of Amherst)
The town of Amherst provides FTHBs with qualifying income long-term, deferred payment loans with no interest for use toward closing costs. Income limits range from $38,200 for a single-person household to $72,050 for an eight-person household.
City of Buffalo Down Payment & Closing Cost Assistance
This 0% interest program provides deferred loans that may be forgivable as long as conditions are met. It’s available to homebuyers in Buffalo and nearby Tonawanda and West Seneca. This program requires a 3.5% down payment for FTHBs with 50-80% of the median income in the area. Clients who use this program must agree to live in their homes as primary residences and for at least five years.
Good Neighbor Next Door
This program is restricted only to teachers, law enforcement officers, firefighters and emergency medical technicians. It’s sponsored by the FHA, which sells homes that previously were owned by FHA-loan recipients and went into foreclosure. Good Neighbor Next Door participants can purchase homes for half of their regular price. The buyer must work in the jurisdiction where he or she wishes to purchase a home.
Let Us Help You Achieve Your Dreams
This is far from a comprehensive list of first-time homebuyer assistance programs available in North Tonawanda, Hamburg, Amherst, West Seneca, and Lancaster, NY. To learn more about these and other programs and see if you qualify, contact Nickel City Funding. Our friendly mortgage professionals love helping FTHBs achieve their dreams to own a home, and we’re waiting to speak with you.