First time homebuyer programs

Hi all,

I always hear about people getting good programs through banks in regards to assistance towards closing costs, etc. I’ve called around to several banks and no one seems to offer anything. Chase does have the dream makers programs for first time home buyers but that’s about it. Any advice/suggestions? TIA.

Re: First time homebuyer programs

I though those were government programs that existed nearly a decade ago.

First time homebuyer programs

we did it through the HSBC first home club in 2014. Try calling and asking about it... We got $7500 towards closing costs and a lower rate. We have to keep our home for 5 years.

First time homebuyer programs

https://www.mtb.com/mortgages-loans/mortgages/buying-home/first-time-homebuyer-programs/first-home-club

Re: First time homebuyer programs

First time homebuyer programs

We bought in 2014 and there weren’t any programs available (at least not that we knew of). There’s not much incentive to draw in buyers right now. There was an open house on our block recently and 100 people must have gone in and out. People are buying with or without incentives.

Re: First time homebuyer programs

Re: First time homebuyer programs

Those programs don't really exist anymore.

I have had buyers get some down payment assistance via SONYMA, but not all banks do SONYMA loans, as they are a pain. And as a buyer, there are some downsides (e.g., restrictions on selling) that you need to understand.

But different banks may have some incentive programs based on your occupation or other things.

I know that mortgage lenders I work with at Contour offer money off of closing costs (something like $5K I think) for fire fighters, police, teachers, and school employees (clerical, janitorial, etc.).

But keep in mind that - while a lot of people assume you need 20% down to buy - you can get an FHA loan with 3.5% down, and a conventional loan with as little as 5% down (in theory, even 3% now, but I've never heard of that in reality), although for the low down payment conventional loans, you need sterling credit and very low debt-to-income ratio. So many people opt for FHA, which allows for low down payments and has looser credit and ratio requirements.

Your best bet is to talk to a mortgage lender, if you haven't already, to gather info about your qualifications and options.

ETA - There is such a thing as a "seller's concession" - where you can roll your closing costs (or part of them) into your loan. However, the house must appraise for the price you are paying the seller PLUS the closing costs. So if you are rolling in $10K, and the agreed upon price of the house is $450K, it must appraise for $460K. That can be tough when so many houses are going well over asking in many areas. In this market, in most areas, seller's concessions are a tough sell. Many houses are getting multiple offers, so terms really come into play, and the larger down payment offers tend to be viewed preferentially (versus small down payments with seller's concessions).

Message edited 6/5/2018 9:10:25 AM.

Re: First time homebuyer programs

My friend just closed 2 months ago only putting down a few grand because she qualified for a (very) low income 1st time home buyer grant.
She is now required to own the home for 10 years.
I think she started by contacting sonyma but the county referred her to a different one?

First time homebuyer programs

Call CDCLI in Centereach. They had a program a couple of years ago when a family member of mine was buying. They were going to get $20k down payment or something like that, and the house had to be less than a certain amount...I want to say $399K? I think the income requirement was $100k or something like that. They ended up finding a house that cost more, so they didn't utilize the program.