If you are looking for your first residential property in New York City, you may receive up to $100,000 to cover the down payment or closing costs as part of the “Home First Down Payment Assistance Program.”
The first step is to find out if you are eligible. Below are the eligibility rules, according to NYC.gov:
• It must be your first residential property purchase. This requirement is waived for U.S. military veterans;
• You need to complete a homebuyer education course taught by a counseling agency approved by the New York City Department of Housing Preservation and Development;
• Have savings to contribute to the down payment or closing costs. You will need to contribute a minimum of 3% of the down payment amount and 1% of the total contract amount must come from your own funds;
• The property must be a 1 to 4 family home, a condominium, or a cooperative for owner-occupancy in one of the five boroughs of New York City (Manhattan, Bronx, Brooklyn, Queens, or Staten Island);
• The property of interest must pass a Housing Quality Standards inspection before purchase;
• You will need to live in the house for at least: 10 years if the loan received is $40,000 or less, and 15 years if the loan is greater than $40,000;
• Have a maximum household income of up to 80% of the Area Median Income.
Once the HPD homebuyer course is completed, potential buyers will receive a certificate verifying their eligibility for the program. The certificate is valid for six months, according to the city’s website.
Potential homebuyers then need to take the certificate to a participating lender to obtain pre-approval for a mortgage loan. After that, they should contact a real estate agent to help them find affordable homes. Finally, hire a real estate attorney and then negotiate the purchase and sale agreement with the seller, as required by the city.
The Neighborhood Housing Services of New York City administers the program and will work with potential homebuyers and their counseling agency throughout the process.
The HomeFirst program began accepting applications on March 4.
Source: Pix 11 New York