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There are many costs and fees associated with buying a home. For a first time home buyer, it’s likely they don’t have piles of money laying around. There are national, state, and local programs/grants available for a first time home buyer.
Many of these first time home buyer programs and grants can help cover a large amount of the “closings costs” and/or allow them to finance a higher percentage of the loan (or all of the loan in some cases).
Great news Rochester first time home buyers, there are some exciting changes in the coming months! This article has been updated as of May 2020, so read on for some detailed information on some great programs that are available to eligible first time home buyers.
Directly below is a short video that briefly discusses some of the fantastic Rochester NY first time home buyer programs and mortgage products!
This program is designed to help low to moderate income rural first time home buyers (also available to a non first time home buyer). Rural Development has partnered with lenders across the country to allow 100% financing on eligible properties.
The qualifying ratios are strict in comparison to other mortgage programs. The housing costs cannot exceed 29% and total debt cannot exceed 41%. Eligible repairs and improvements may be included in the loan.
The USDA rural development program is a fantastic option for first time home buyers who’re trying to buy a home in a rural area!
This program debuted in July 2019 and was an absolute home run for Rochester NY first time home buyers!
Just how successful was the program? Within 3 weeks of the grant being launched, ALL of the grant money was accounted for.
But, there’s good news…The homebuyer dream program is back starting June 1, 2020!
The homebuyer dream program replaced the First Home Club and is financed by the Federal Home Loan Bank of New York.
The homebuyer dream program is offering up to $15,000 for qualified first time home buyers! That’s right, up to $15,000!
One of the best benefits to the homebuyer dream program is that there is no savings period, unlike the First Home Club grant which required a buyer to enter a minimum of a 10-months savings program.
Like with any first time home buyer grant, there are restrictions and requirements. A few of the restrictions and requirements pertain to the borrowers income, credit score, and work history.
If you aren’t working with a Realtor or Mortgage Originator, you’re in luck! We here at the Rochester Real Estate Blog work closely with one of the top mortgage originators in the Rochester area who offer this amazing program that’ll be launching in the next couple months!
We had so much success with this program and we successfully helped several buyers obtain and utilize this amazing grant program in July 2019!
Here is what just one of our buyers said about their experience.
This is my first home and Kyle was phenomenal every step of the way. He answered every question I had thoroughly, and made this entire process very easy. He was extremely helpful and a pleasure to work with. I highly recommend him if your looking to buy a home.
If you’re interested, simply click the image above, enter your information, and we’ll reach out to see if you’re eligible for this Rochester NY first time home buyer program.
Several lenders throughout New York offer the first home club matched savings program. With this program a first time home buyer can qualify for a grant of $7,500 towards their down payment & closing costs. This grant is financed by the Federal Home Loan Bank of New York (but is also available in New Jersey).
This program matches $4 to every $1 contributed by the first time home buyer (up to $1,875). A “first time home buyer” refers to one whom hasn’t owned a home in the past 3 years, single parents, or displaced homemakers who owned a property within three years with a spouse. The length of this program ranges from 10 months to 24 months. There are income eligibility requirements and depending on which county the first time home buyer resides in will determine what the requirements are.
The first time home buyer must also complete a home buyer education program prior to the grant being approved. This program is an excellent option for a first time home buyer who is either not in an immediate hurry to purchase or cannot purchase at this instant.
This agency offers mortgage programs to a first time home buyer with the purchase of a home in New York State. These SONYMA loans are financed through the sale of tax exempt bonds.
The City of Rochester offers this grant of up to $3,000 (towards down payment and closing costs) to a first time home buyer that meets the HPAP requirements. The property that the first time home buyer is purchasing must be located within the City of Rochester and must be a one or two-family home.
The buyer must contribute $1,500 of their own funds and remain in the home for 5 years. In addition, like the First Home Club, the first time home buyer must attend pre and post-purchase home buying training.
Last, but not least, another fantastic first time home buyer grant in Rochester is the Employer Assisted Housing Initiative grant. This grant is also available for buyers who’re not purchasing their first home but are looking to purchase a home in the City of Rochester.
This program is an incentive to encourage buyers who work for certain employers to purchase a home in the City limits. The program, which is run by the City of Rochester, is a dollar for dollar match program up to $3,000.
It requires that a buyer is able to obtain a conventional mortgage, contributes up to $1,500 of their own money, lives in the property for 5 years, and works for certain employers. Below is a list of the local Rochester companies whose employees can qualify for the EAHI grant.
If you happen to work for any of the above companies in Rochester NY or you’re planning on moving to Rochester NY to work for these companies, this program may be a fantastic home buying option. One of the best benefits of this program is that it doesn’t have maximum income limitations like many of the Rochester NY first time home buyer programs do, such as the first home club.
There are so many options for local first time home buyers! The above are the most popular home buying programs in Rochester NY, but certainly not every option. It’s highly recommended that if you’re looking to purchase your first home in Rochester that you discuss with an experienced buyers agent.
Having helped dozens of Rochester NY first time home buyers over the years, I’d love the opportunity to discuss your circumstances and help you with the process! If you have any questions about these programs or would like to get started, contact me!
About the authors: The above article “First Time Home Buyer Programs In Rochester NY” was provided by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group. With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise.
We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.
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