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First Time Home Buyer in New YorkIf you are looking to buy your 1st home, you've come to
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Today’s Rates for First Time Homebuyers in New York

Sunday, July 21, 2024

Mortgage rates are at 3.00% for the 30 year fixed loan program and at 2.56% for the 15 year fixed. As for variable rates, the 5/1 ARM rate currently stands at 4.56%. Check out FHA and VA rates as well if you are doing low or no down payments.

New York First Time Home Buyer Checklist

  1. Decide on your loan program options. If you're moving to an eligible area, you may qualify for a zero down payment loan through USDA. Veterans may be eligible for VA loans, which do not require cash down. The content in the paragraphs below should give you an idea of where you may fall. 
  2. Get familiar with your credit score. Your credit should fall somewhere above 600, but few lenders accept scores in the high 500s. If your credit score needs a boost, work on improving it before you try to take out a mortgage. Once annually, you're able to request a free credit report from the three major credit bureaus, Equifax, Experian or TransUnion. 
  3. Shop interest rates from different lenders in your part of New York. Choose one who not only provides a great offer, but carries a high rating from the Better Business Bureau.
  4. Get pre-approved. Once you've picked a lender, provide income documentation with your last two pay stubs and tax returns from the past two years. 
  5. Determine a budget. You could be pre-approved for a loan amount that is bigger than you had anticipated, but do not base affordability on the sum provided. Remember - pre-approvals are not guaranteed, and only you know what you can truly afford. 
  6. Begin home shopping. Be sure to avoid making extravagant purchases, taking out new installment loans, or anything else that could weaken your financial standing. Lenders will check your accounts again before closing your loan.  

Low Down Payment Loans Through FHA

If you’re a first time home buyer without a lot to put down, a New York FHA loan may accommodate you. FHA loans are backed by the government and designed to help home buyers with limited upfront funds receive financing.

  • Down payment: 3.5%
  • Minimum acceptable credit score: 580 (varies)
  • Mortgage insurance: Upfront (1.75% loan amount) and monthly
  • Property guidelines apply and are verified via home inspection

You can find additional information about FHA loans on the New York page of the FHA website.

No Down Payment Loans Through USDA

The United States Department of Agriculture backs home loans for zero down to New York home buyers looking to move to or live in rural areas. Find out if your buying city is eligible by searching the USDA's property map. Note that popular areas like New York City, Buffalo, Rochester, and Albany are not eligible. 

  • Down payment: None required; financing up to 102% available depending on home appraisal
  • Minimum acceptable credit score: 620
  • Mortgage insurance: Upfront (2% loan amount) and monthly
  • Income maximums apply 

New York Grant and Assistance Programs

The State of New York Mortgage Agency provides a number of first time home buyer down payment help incetives to qualifying state residents:

  • Remodel New York - Facilitates purchases of homes in need of renovation by providing funds for both repairs and mortgage financing. A down payment assistance loan is available at 0% interest. 
  • Achieving the Dream - Provides lower interest rate loans to qualifying low income borrowers in New York. Down payment assistance of up to $15,000 is available. 
  • Construction Incentive Program - Participants may use this option to purchase homes undergoing rehabilitation or construction, often for energy efficiency. 
  • Low Interest Rate Program - Participants receive a low interest rate and rehab funds for homes financed through the Own It, Fix It New York! Home Mortgage. Down payment assistance of up to $15,000 is available.

Popular areas like New York City, Buffalo, Rochester and Albany are eligible. Visit the New York State Homes and Community Renewal (NYSHCR) site for more details about these programs including eligibility. 

Major Cities in New York

Looking for programs specific to your part of New York? Lender411 has researched mortgage assistance programs for the top city in New York for first time homebuyers:

Click the link above to learn about down payment assistance programs, grants, and mortgage tax credits for the New York City area including its five burroughs. 

Local Cities

user suit Lenders in: New York.

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