New York Mortgage Overview
Everyone knows and loves New York. Whether
it's for the big cities, vast resources, or plentiful employment, 19 million
people live in the bustling state of New York. Its average home price is much
higher than the national average at $313,000 and just over 50 percent of the
homes in NY are owner-occupied.
If you're thinking of becoming a homeowner
in New York, here are your loan options:
New York conventional loans
Conventional lenders
require at least a 660+ credit score and a 36 percent debt ratio for a
conventional loan. First-time homebuyers need just a 3 percent down payment and
subsequent homebuyers need a 5 percent down payment. Any borrower putting down
less than 20 percent will pay Private Mortgage Insurance but only until you owe
less than 80 percent of the home's current value.
New York FHA loans
Borrowers with a minimum 580
credit score and a 3.5 percent down payment may qualify for an FHA loan. FHA
lenders allow a 45 - 50 percent debt ratio and allow explanations for poor
credit. You can use gift funds for FHA down payments. You'll pay mortgage
insurance for the loan's term but you can secure a loan with less than perfect
credit.
New York VA loans
Veterans can secure 100
percent financing from a New York VA lender. Borrowers need a 620 credit score
and enough income to cover the bills including the new mortgage and daily
living costs. You don't need a down payment or mortgage insurance and can enjoy
the flexible guidelines. There is an upfront funding fee, but it's affordable.
New York USDA loans
New York has plenty of
rural areas. If your household makes less than 115 percent of the area's median
income, you may be eligible for a USDA loan. Lenders require a 640+ credit
score and a max 41 percent debt ratio. USDA loans don't require a down payment
and have low-interest rates for affordable homeownership.
First-Time Homebuyer
Programs in New York
Achieving the Dream
This low-rate mortgage
program provides 97 percent funding and you can use down payment assistance to
qualify. You must contribute 1 percent from your own funds. You'll need decent
credit and the home's sales price must not exceed SONYMA's
limits. Loans with less than 20 percent down require mortgage insurance.
Down Payment Assistance Loan
Qualified
borrowers may secure $1,000 - $15,000 or 3 percent of the sales price max for down
payment assistance. The loan has a 0 percent interest rate and no monthly
payments. If you stay in the home for 10 years, it's forgiven. You may use the
program in addition to the Achieving the Dream Program or any other SONYMA
program.
Homes for Veterans
This program helps veterans
who don't qualify for the standard VA loan. Borrowers receive a rate that's
0.375 percent lower than the market rate and down payment assistance up to
$15,000.
Graduate to Homeownership
New graduates may
qualify for low mortgage rates and down payment assistance to buy a home right
out of college. You must have received your degree within the last 48 months
and be a first-time homebuyer. You must also have good credit and prove you can
afford the loan.
Give us Credit
If you have non-traditional
income or savings but can prove you can afford a loan, the Give Us Credit may
help you buy your first home. You can secure a 30-year fixed rate mortgage and
include the Down Payment Assistance program to make homeownership a reality.
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