Homebuyer Dream Program®
Financial Assistance for Homebuyers in New York
Available Assistance
With the Federal Home Loan Bank of New York's Homebuyer Dream Program, participants can obtain a grant up to a $9,500 towards down payment and closing cost assistance to eligible first-time home buyers purchasing a home through one of their approved community- member lenders.
Eligibility Requirements
The HDP provides funds in the form of a grant to be used towards down payment and closing cost assistance based on th following:
- Household is a first-time homebuyer
- Total household income is at or below 80% area median income
- Provide a fully executed Purchase and Sales Contract
- A minimum equity contribution of $1,000 towards the purchase Purchase of an eligible property in the FHLBNY District
- Completion of homeownership counseling
- Execution of a 5-year retention document at closing
The purpose of this program is to make funds available to eligible applicants who are interested in purchasing a home but need financial help to pay the upfront costs, which include the down payment, as well as the closing costs and prepaid items required to obtain homeownership. These expenses can add up to a substantial amount, and the inability to pay it might keep people stuck in a renter's trap.
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits.
Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in New York
Albany County Rural Housing Alliance Acquisition Grant
The ACRHA grant comes in the form of a forgivable loan, which is meant to assist with purchase and repair of a home. 51 percent of the grant must be used for rehabilitation/repair of the purchased home while the other 49 percent must be used for down payment and/or closing costs.
City of Albany Home Acquisition Program (HAP)
The City of Albany offers to its residents the Home Acquisition Program (HAP). It provides financial assistance to low income households with low annual incomes. Funds can be put towards the down payment and closing costs of the home for a first-time homebuyer who resides in the property being purchased.
First Time Home Buyer’s Program
This program is in the form of a second mortgage and provides eligible applicants with a loan of up to 10 percent of the purchase price of the property in order to meet the down payment requirements. The loan has an interest rate of 4 percent with a 5-year term.
Homebuyer Down Payment Assistance
The Homebuyer Incentive Program (HIP) grants assistance of $15,000 and $20,000 to income- eligible applicants, in order to promote homeownership in Troy for low income homebuyers. Troy Rehabilitation and Improvement Program requires that all applicants must be first time homebuyers.
Homebuyer Dream Program®
With the Federal Home Loan Bank of New York's Homebuyer Dream Program, participants can obtain a grant up to a $9,500 towards down payment and closing cost assistance to eligible first-time home buyers purchasing a home through one of their approved community- member lenders. Additionally, the program offers up to $500 towards the defrayment of homeownership counseling costs.
NY State Association of Realtors Housing Opportunities Foundation
New York State’s NYSAR Housing Opportunities Foundation, Inc. offers qualifying homebuyers the opportunity to receive a grant, which is designed to assist with closing costs and/or down payments. The Housing Opportunities Foundation Individual Grant Program is in the form of a gift . Repayment is not required.
Rensselaer County Homebuyer Program
The Troy Homebuyer Incentive Program (HIP) makes funds available for down payment and/or closing cost assistance, via the Rensselaer Country Homebuyer Program.
State of New York Mortgage Agency Down Payment Assistance Loan
The State of New York Mortgage Agency (SONYMA) Down Payment Assistance Loan (DPAL), which is available for all buyers using a SONYMA mortgage program, can provide the initial funding needed to purchase a home.
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