The HomeFirst Down Payment Assistance Program
Good news for New York residents or those looking to move to New York. If you're looking to buy a condominium, cooperative, or 1-4 family home in any of the five boroughs of New York City, there's a new down payment assistance program you should keep your eye on: The HomeFirst Down Payment Assistance program could grant you up to $40,000 toward your down payment if you qualify!
Who is eligible?
This down payment assistance program is available only to first-time homebuyers. If you fall into this category, you'll first need to complete a homebuyer education course taught by an HPD-approved counseling agency to ensure you're well-educated and prepared for the process. You also will need to contribute some of your own savings towards the down payment or closing costs you'll be putting the loan towards. You will also need to pass a housing quality standards (HQS) inspection before you purchase the home. Like we stated above, this loan is also only eligible to be used towards a 1-4 family home, a condominium, or a cooperative that you are going to live in, and the property must be located in one of the five boroughs of New York City. After you've purchased the home, you should live in it for at least 10 years. Additionally, you will only qualify if you have a household income of 80% of the area median income (AMI) or below. If you're just one person, that's $63,700. For families of 2, 3, or 4, that's an income of $72,800, $81,900, and $90,950, respectively.
How does it work?
Once you've completed your homebuyer education class, you will receive a certificate that verifies that you're eligible for the loan for your down payment or closing cost. This certificate will remain valid for six months, and you'll be able to renew it for another six months after that, should it expire before you use it. You should present this certificate to lenders that are participating in this program in order to get pre-approved, and then you can start the process of finding your home by talking to a real estate agent. Once you find a home and hire a real estate lawyer, you can start negotiating a contact with the seller of your dream home. Throughout this entire process, homebuyer education counselors will be available to help you! You don't have to go through the process of buying your first home alone. So if you're looking to find a home in New York City but have felt overwhelmed or unsure of how you will pay your down payment and closing costs, the HomeFirst Down Payment Assistance program is one great option to keep in mind. It will provide great assistance towards paying for your costs and also provide you with someone to help and counsel you so that the process is a bit less stressful. Don'tforgettosearchoursitefordownpaymentassistance,andotherincentives.