New York Down Payment Assistance

Whether you prefer the bustling city life or the quiet countryside, New York State has something for everyone! However, New York is also one of the states with the highest average mortgage debt and median housing prices. This can make home ownership in New York difficult.

Luckily, local and national programs exist that offer down payment assistance and grants to qualified applicants. The Federal Home Loan Bank of New York, the Albany County Rural Housing Alliance Acquisition, and the Troy Rehabilitation and Improvement Program are three examples of organizations that offer such programs.

If you're thinking about purchasing a home in New York, you may have options to help with the down payment or closing costs. Click on any program below to learn more and see if it can help with your home purchase!

First Home Club Matched Savings Program

Homebuyers in New York can get financial assistance through this program.

Through the Federal Home Loan Bank of New York, qualified participants can earn as much as $4 per every $1 they save in a qualified account. Participants can earn as much as $7,500.

Interested applicants must complete a Homebuyer 101 orientation offered by the AHP Homeownership center.

The next step is for applicants to meet with a homeownership advisor, and complete program registration and forms.

Applicants are required to be first-time homebuyers and have to meet certain income limits.

They also must be approved by a bank or credit union and save a minimum of $20 a month for at least 10 months in a qualified account.

The income limits are $65,600 for a 1 to 2 person household, and $75,440 for a 3 or more person household.

ACRHA Acquisition/Rehabilitation Grant

Offered by the Albany County Rural Housing Alliance Acquisition (ACRHA). The grant is offered as a forgivable loan to be used to purchase and repair a house. It must be used in a very specific way – 51% must be used for rehabilitation/repair and 49% must be used for down payment and closing costs. The amount of the grant depends on the individual case.

Applicants must be first-time homebuyers, meet annual income limits determined by the HUD, finish a homeownership education course, and fall under asset limits. In addition, they must pay for a credit report, start a credit repair program if required, and be able to pre-qualify for a mortgage. They have to put forth at least $1,500 of their own funds for the home and sign a note up to 10 years.

In order for a property to be eligible, it must serve as the family’s primary residence, be a 1 or 2 family home, and be in the target area. Mobile homes do not qualify, but priority is given to those living in mobile homes who wish to purchase stick-built homes.

Properties must be in need of moderate rehabilitation and be inspected by a NYS licensed home inspector, while also meeting the appraisal criteria of the mortgage lender.

Homebuyer Incentive Program

The Homebuyer Incentive Program (HIP) is offered by the Troy Rehabilitation and Improvement Program (TRIP)’s HomeOwnership Center.

Applicants must be first-time homebuyers, meet certain income requirements, and have at least $1,500 in savings. They cannot already have a purchase contract on a house and also have to be willing to commit to a 10-year grant enforcement.

Before applying for assistance, applicants must take a pre-purchase program.

Assistance is offered in the form of grants of $15,000 to $20,000, and can be used for down payments and/or closing costs.

Houses purchased using the program must be located in the city of Troy, owner occupied, and have one or two units. The price of the home must also not exceed 95% of the median purchase price for the area. Properties also must be inspected for code compliance and certain health violations.

Income Limits as of 2020:

  • 1 person household: $46,550
  • 2 person household: $53,200
  • 3 person household: $59,850
  • 4 person household: $66,500
  • 5 person household: $71,850
  • 6 person household: $77,150
  • 7 person household: $82,500
  • 8 person household: $87,800

Home Acquisition Program

For residents of Albany, the Home Acquisition Program, or HAP, offers financial assistance to households with an annual income of less than 80% of the median income for the area.

Interested applicants must not already own a home, be first-time homebuyers, must have assets of less than $40,000, and must use the program to buy a 1-4 unit building, condominium, or cooperative unit in Albany.

HAP is offered by the HOME Investment Partnership ACT Program (HOME), and can be used for the down payment or closing costs.

The applicants must occupy the property purchased for as long as they have the HAP mortgage. Repayment is required when the applicants leave the house permanently.

Property Purchase Price Limits as of 2020:

  • One-family unit: $178,600
  • Two-family unit: $228,647
  • Three-family unit : $276,380
  • Four-family unit: $343,473

Income limits as of 2020:

  • 1 person household: $46,550
  • 2 person household: $53,200
  • 3 person household: $59,850
  • 4 person household: $66,500
  • 5 person household: $71,850
  • 6 person household: $77,150
  • 7 person household: $82,500
  • 8 person household: $87,800

First Time Home Buyer’s Program

This program is available for first-time homebuyers in Schenectady.

Assistance is offered in the form of a second mortgage for as much as 10% of the house’s purchase price, which can be used to pay for the down payment and/or closing costs.

Because a second mortgage is a loan, this assistance must be paid back. The assistance has an interest rate of 4% and a 5-year term, but if the applicant lives in the house for at least 5 years, 75% of the loan is converted to a grant that does not need to be paid back.

In order to be eligible, applicants must be first time homebuyers and have a mortgage commitment for at least 90% of the purchase price from a lender.

In addition to being located in the city of Schenectady, eligible properties must be the homebuyer’s primary residence for at least 5 years, have no more than 3 units, be in standard condition, and pass a C of O and lead-based paint inspection.

Income Limits for 2020:

  • 1 person household: $46,550
  • 2 person household: $53,200
  • 3 person household: $59,850
  • 4 person household: $66,500
  • 5 person household: $71,850
  • 6 person household: $77,150
  • 7 person household: $82,500
  • 8 person household: $87,800

Housing Opportunities Foundation Individual Grant Program

This $2,000 grant is offered by the New York State’s NYSAR Housing Opportunities Foundation, Inc.

The grant can be put towards the down payment and closing costs, but if the sale closes before funds are awarded, the homebuyer will no longer be eligible.

After an applicant is approved, they will have 120 days to access the grant.

In order to be eligible, applicants must be first-time home buyers, meet certain income restrictions, and be represented by a realtor. The house being purchased must also serve as the applicant’s primary residence and meet certain purchase price restrictions.

Rensselaer County Homebuyer Program

The Rensselaer County Homebuyer Program (RCHP) is offered by the Troy Rehabilitation and Improvement Program (TRIP)’s HomeOwnership Center.

Applicants must be first-time homebuyers, meet certain income requirements, and have at least $1,500 in savings. They cannot already have a purchase contract on a house and also have to be willing to commit to a 10-year grant enforcement.

Before applying for assistance, applicants must take a pre-purchase program.

Assistance is offered in the form of grants of $15,000 to $20,000, and can be used for down payments and/or closing costs.

Houses purchased using the program must be located in Rensselaer County, but not in Troy city limits, owner occupied, and have one or two units. The price of the home must also not exceed 95% of the median purchase price for the area. Properties also must be inspected for code compliance and certain health violations.

Income Limits as of 2020:

  • 1 person household: $46,550
  • 2 person household: $53,200
  • 3 person household: $59,850
  • 4 person household: $66,500
  • 5 person household: $71,850
  • 6 person household: $77,150
  • 7 person household: $82,500
  • 8 person household: $87,800

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