Advice for First Time Home Buyers in New York

It is a big financial decision to buy a house. There are many hurdles and challenges you can face during this process. But being a strong and wide economy of New York, it is quite easy to buy a home here. We will make this buy easier for you. This article will include all the information that you require to buy the house in New York.

Different types of Mortgage Loans which are available in New York

New York offers several types of mortgage loans if you are first – time home buyer. Below are some of the mortgage loans offered to New Yorkian. Have a look and choose according to your choice.

Federal Loans

People of New York are extremely proud of their state. Mostly New Yorkian opt federal loan whenever they need to buy a home. They choose federal loan because of its accessibility.

Below are the common loans New Yorkian go for:

Conventional Loans New Yorkian need loans for mortgages. The most opted loan for mortgages is conventional loans. If you are purchasing a home for the first time, you only need to pay 3% as a down payment in the form of cash. But this is only when you fulfill the guidelines of the organizations like Fannie Mae and Freddie Mac. You don’t have to purchase mortgage insurance if you are paying 20% as a cash down payment.

FHA Loans

Another alternative among New Yorkian is FHA loans. They are popular among New Yorkian because of its great benefit. The benefit is that you can get this loan even if your credit score of the bank is not good.

VA Loans

New York is also known as Lone Star State. Due to the presence of veterans in large number, VA loans and assistance programs are a very popular option among first-time home buyers as they are available to all the current and former military members. They are also available to their surviving partner if they are no more. There is no need for minimum credit score and down payment or mortgage insurance. Although, New Yorkian have to deposit some fee in advance.

USDA Loans

If you are buying a home in a rural area, you can go for USDA Loans. If you don’t have a traditional credit history, no need to pay down payment mortgages which means if you have utility payments on file, you are eligible for the loan.

State Loans in New York State loan programs are specific for the first time home buyer. These loans come under the New York City Housing Authority (NYCHA).

The benefit of buying in New York? Suppose you are a homeowner in New York but not residing in this house from the past three years, then you are considered as a first-time home buyer under NYCHA guidelines. But the exception is you have to be an honorably discharged veteran. NYCHA provides many types of loans and many of them have alike benefits.

Homes for New York Heroes Home Loan Program

This loan program is particularly for the people who in the service sector like teacher, police or correctional officer, firefighter, EMS personnel, or are a veteran. Community in the service sector can apply for this loan program. This loan program provides a fixed rate for 30-year interest rate and DPA of 3-5% of the total loan amount. All New Yorkian can apply for this loan program.

Homes Sweet New York Home Loan Program

The greatest advantage of the Home Sweet New York Loan Program is that it provides down payment assistance (DPA) of (Three) 3% – (Five) 5% of the loan amount and this down payment assistance could be a grant. If you are getting the money as a grant, no need to pay it back ever.

Aren’t you happy?

You must be. And, the other good news is that Homes Sweet New York Home Loan Program doesn’t require a first-time home buyer to get this loan.

My First New York Home Loan

This loan provides fixed rates on the total amount of the loan for 30 years. New Yorkian do not have to pay down payments. Also, closing cost helps up to 5% of the loan amount. In this loan, there is no interest and no second lien(monthly payment).

New York Mortgage Credit Certificate Program

Whenever you pay the mortgage payment, the interest is paid to the loaner. This interest is imposed on the principal balance of the loaner. New Yorkian can recover some part of these taxes through New York Mortgage Credit Certificate (MCC). New Yorkian are eligible for 40% of your annual mortgage interest or approximately $2,000 per year.

Best Places To Live in New York

New York has many beautiful places to live in. There are several communities present everywhere.

As far as rural area is concerned, housing is inexpensive whereas they have a strong economy.

Talking about the cities, the same is true in the cities.

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