Learn About DPA Programs Available To You
First time home buyers in New York have many options available to them for help in purchasing their first residence. If you feel that saving enough for a down payment will forever prevent you from buying your first residence, here’s some great news. The State of New York Mortgage Agency (SONYMA), offers down payment assistance for New Yorkers in your situation.
New York DPA Details
Help coming up with the needed down payment is perhaps the greatest resource that you can tap into as a first time home buyer. Here are some details from the SONYMA website:
One of the biggest obstacles to owning a home is the amount of funds a borrower must have for downpayment and closing costs. To help applicants overcome this obstacle, SONYMA offers homebuyers down payment assistance in conjunction with SONYMA financing. Please read below for details about the Down Payment Assistance Loan (DPAL) offered by SONYMA.
Down Payment Assistance Loan (DPAL) allows SONYMA borrowers to secure down payment assistance through a second mortgage that can be used in combination with any currently available SONYMA program. DPALs have no interest rate and no monthly payments and will be forgiven after ten (10) years as long as the borrower keeps the SONYMA financing in place, and continues to owner occupy his or her home.
The SONYMA DPAL can now be used to pay all or a portion of a one-time mortgage insurance premium, if applicable, thus significantly reducing your monthly mortgage payment.
- 0% interest rate;
- Requires no monthly payments and is forgiven after 10 years;
- Minimum loan is $1,000;
- Maximum loan is the higher of:
- $3,000; or
- 3% of the home purchase price (up to a maximum of $15,000).
To get complete program details, including income limits as well as how to get the application process started, please visit the SONYMA down payment web page.