A HOMEBUYING program has offered up to $100,000 in cash assistance for some people buying their first home.
The program wrote that it “provides qualified homebuyers with up to $100,000 toward the down payment or closing costs.”
There are 21 counseling agencies throughout the city that can reward homebuyers with the assistance.
New York City is one of the most expensive cities in the world to purchase a home in.
The average home sale was $799,000 the past quarter, according to Realtor.
New York’s average home cost is $304,000 greater than the median home cost reported by Federal Economic Data.
The standard for home buyers is to pay from 5 to 20 percent on a down payment – the initial cost in New York City for a median house would be $39,950 to $159,800.
The HomeFirst Down Payment program attempts to give funds to alleviate these financial pressures.
New York’s Housing Department of Preservation and Development runs the funding program.
The program is only eligible for first-time home buyers with income below 80 percent of the area median income.
Applicants must purchase a home, condominium, or cooperative for one to four families in the five boroughs.
The dwelling must pass a Housing Quality Standards (HQS) inspection before the funding is awarded.
Applicants also have to pass a homebuyer education course from one of the 21 counseling agencies.
The courses are taught in a range of languages – including English, Spanish, Mandarin, Cantonese, Russian, Bengali, Hindi, and Urdu.
Successful applicants will have some savings to put into the property.
The administration requires homeowners to invest a minimum down payment of 3 percent of the purchase price.
For the average home in New York, that would be an upfront cost of $23,970.
Applicants who receive more than $40,000 from the program must live in the home for at least 15 years.
If the program awards less than $40,000, recipients can move after ten years.
The agency suggests three final steps once an applicant is approved for assistance.
Applicants must present the certificate of approval to a participating lender for final financial approval.
Then, the program says homebuyers should consult a “reputable real estate professional.”
The agency suggests homebuyers should also hire a lawyer for negotiations.
Lastly, homeowners need to enter negotiations with a seller.
The U.S. Sun reports on other housing grant programs – here is another program for eligible New York buyers.
Also, this federal grant can help with some home improvements.