Are there ANY programs out there for first time homebuyers for down payment assistance? I really want to take advantage while prices are low, but cannot afford to save for a down payment and a wedding =( It makes living on Long Island VERY discouraging.
cavvento
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Re: NWR-Down Payment Assistance
usually if you can only put down 10%, your bank will ask you to pay a PMI, usually under $100/month, which is basically like an insurance for them to take on a low-down payment client. You pay this for the first 3 years or unless you make significant home improvements that really increase the net worth of your home.
geegee827
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Re: NWR-Down Payment Assistance
You pay PMI if you have a downpayment of less than 20%. You continue to pay PMI until the loan to value ratio of your house is 80-20.
The Town of Babylon is currently running a downpayment assistance program for first time homebuyers. You can see the details on their website. However, there are income limits.
stinenandy2010
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Re: NWR-Down Payment Assistance
Like Gina said, most down payment assistance programs have income limits and its pretty difficult to get.
We took a FHA Loan and put down 3.5%. Yes, we pay PMI but only for 5 years with an FHA loan and honestly, its not that bad, its like $60 additional in our mortgage. It was worth it to us especially since we got the first time homebuyer tax credit.
BRIDE62610
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Re: NWR-Down Payment Assistance
We are pre-approved for an FHA with the 3.5% down, the house we are looking at would require at $10,000 down payment. ALL of my 'reserve' money has been applied towards our reception, so I was hoping to find some sort of 'non income fixed' assistance =( I would LOVE to get the tax credit b/c that will help us out alot. But, it seems most of it is based on your income. It's really discouraging. I am afraid, if we wait until AFTER the wedding, next year, the prices will be back to what they used to be, and we STILL won't own a home =(
geegee827
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Re: NWR-Down Payment Assistance
we are doing a traditional mortgage (but with only 15% instead of 20%). There was something in the paper the other day about NYS also giving mortgage credits (through Sonyma) - the info is on www.nyhomes.org
Again, income limits come into play.
Hopefully, after the wedding, we will be able to pay a chunk of the mortgage down and get rid of the PMI.
Plus, I was just given a 'good faith' estimate of closing costs of around $15,000! Yikes!
BRIDE62610
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Re: NWR-Down Payment Assistance
Thanks =) I am going to check that site out now.
We have a 5% sellers concession in there to cover the closing costs. I work for an attorney who will do the closing for me so that will save us about $1,800.00, but the down payment is the KILLER!
BRIDE62610
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Re: NWR-Down Payment Assistance
for the sonyma program, do you have to get a sonyma loan? Right now we are trying for an FHA?
Like Gina said, most down payment assistance programs have income limits and its pretty difficult to get.
We took a FHA Loan and put down 3.5%. Yes, we pay PMI but only for 5 years with an FHA loan and honestly, its not that bad, its like $60 additional in our mortgage. It was worth it to us especially since we got the first time homebuyer tax credit.
How do you get pre approved for an FHA loan?
BRIDE62610
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Re: NWR-Down Payment Assistance
Well, we are just pre-approved and we are aiming for an FHA loan bc of the low down payment required.
geegee827
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Re: NWR-Down Payment Assistance
My boss is doing the closing for us too - and the closing fees were still that high! Maybe it's because we're not going for an FHA loan? It was taxes, title insurance, homeowners insurance, bank attorneys fees, appraisal fee, etc., etc., etc.
I think in order to qualify for the NYS credits, you CAN'T have a sonyma mortgage. Again, due to income limits, we don't qualify for that either
BRIDE62610
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Re: NWR-Down Payment Assistance
Hmm.. Maybe I will try calling the Nys program 800 # tomorrow and see what I can come up with, if not I will call Monday. We qualify for it based on last year's tax returns, my fh received a big raise in April, if the raise was to show, we wouldn't qualify, since it doesn't on his returns we should be okay? Unless I have this all wrong, lol.
Its hard to save for down payment, closing, etc. I really feel bad for people who just can't save due to financial reasons bc it makes home ownership a real difficult thing to even see a part of your future.
geegee827
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Re: NWR-Down Payment Assistance
They make it almost impossible to own a home.
By the way, you are eligible for the NYS MCC if you have an FHA loan
from the website:
Federal law prohibits SONYMA from combining MCCs with its own mortgages. However, MCCs can be used with other fixed-rate mortgages that lenders offer, such as:
Conventional loans (Fannie Mae/Freddie Mac); FHA-insured loans; VA-guaranteed loans; or Other fixed-rate products.
OMG-- that helps A LOT! Do you think the best approach would be to call the # or talk to our mortgage co to get this MCC (which, btw, what does that stand for?) And, yes, I agree they make it almost impossible to own a home :(
FallBride2010
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Re: NWR-Down Payment Assistance
There are programs -- although sometimes your income has to be so low -- you likely wouldnt be able to afford the house! Speak to a real estate agent -- they sometimes know what is out there
geegee827
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Re: NWR-Down Payment Assistance
Your mortgage broker can definitely help you. I think you have to apply for the NYS credit when you apply for your mortgage.
Our mortgage guy didn't really go into detail about it since we make way above the income limit.
stinenandy2010
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Re: NWR-Down Payment Assistance
Posted by StaceYums81
Posted by stinenandy2010
Like Gina said, most down payment assistance programs have income limits and its pretty difficult to get.
We took a FHA Loan and put down 3.5%. Yes, we pay PMI but only for 5 years with an FHA loan and honestly, its not that bad, its like $60 additional in our mortgage. It was worth it to us especially since we got the first time homebuyer tax credit.
How do you get pre approved for an FHA loan?
all mortgage brokers only offer two types of mortgages right now a conventional loan (15-20% down) or an FHA loan. anyone can get a FHA loan, the house just has to meet requirements, nothing serious, like with ours there was visible paint chipping on the garage door so we had to paint it b4 closing.
bag19
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Re: NWR-Down Payment Assistance
def go with the FHA loan. The PMI isn't bad at all. Also there's something called MIP which is due at closing. That could bump your closing costs up $5000. We freaked out when we saw this but it turns out you can roll that into your mortgage which works out to a few dollars extra a month. Its worth it because you'll keep some cash free for home improvements, etc. We're using Wells Fargo and the guy we're working with is just awesome. He will answer any question you have. FM me if you want is his info! Good luck!
ETA FMIL is a real estate agent and said that there is talk of making the tax credit available upfront to use towards closing costs.
They have a down payment assistance program where you're eligible for 25-45k, however, you need to stay in the house a certain amount of time (10-15 years).
And it's a rather drawn out process if you do qualify... it takes about 3-6 months or so.
alli3131
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Re: NWR-Down Payment Assistance
Try for a FHA loan and also look to the town where the house is located.....the town of babylon has a program but it is only for houses that meet a certain criteria.
