Albany County Rural Housing Alliance Acquisition Grant
Financial Assistance for Homebuyers in New York
Assistance comes in the form of a forgivable loan, which is meant to assist with the purchase and repair of a home. 51 percent of the grant must be used for rehabilitation/repair of the purchased home while the other 49 percent must be used for the down payment and/or closing costs. The amount of assistance granted is determined on a case-by-case basis.
In order to be considered eligible for the ACRHA Acquisition/Rehabilitation Grant, all applicants must meet certain requirements. The program is only available to first-time homebuyers whose annual household income falls within the HUD’s limits, based on household size. They are also required to complete an approved, homeownership education course, and meet asset limits. Potential applicants must be "mortgage ready;" they must pay for a credit report, or begin a credit repair program if necessary, and must pre-qualify for a mortgage with a fixed and fair interest rate. All applicants must contribute at least $1,500 from their own personal funds toward the home purchase, and sign a note for up to 10 years.
Any home being purchased must serve as the applicant's primary residence. Eligible property types include existing, single- or two-family residential homes in the stated target area. Mobile homes are not eligible, however, applicants currently residing in a mobile home wishing to purchase a stick-built home will be given priority. The property must be in need of moderate rehabilitation and then be inspected by an NYS licensed home inspector. It must also meet the appraisal criteria for the mortgage lender.
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits.
(Note: These figures were accurate at the time of publication and may no longer be current - visit the program website for updated information.)
Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in New York
The ACRHA grant comes in the form of a forgivable loan, which is meant to assist with purchase and repair of a home. 51 percent of the grant must be used for rehabilitation/repair of the purchased home while the other 49 percent must be used for down payment and/or closing costs.
The City of Albany offers to its residents the Home Acquisition Program (HAP). It provides financial assistance to low income households with low annual incomes. Funds can be put towards the down payment and closing costs of the home for a first-time homebuyer who resides in the property being purchased.
This program is in the form of a second mortgage and provides eligible applicants with a loan of up to 10 percent of the purchase price of the property in order to meet the down payment requirements. The loan has an interest rate of 4 percent with a 5-year term.
The Homebuyer Incentive Program (HIP) grants assistance of $15,000 and $20,000 to income- eligible applicants, in order to promote homeownership in Troy for low income homebuyers. Troy Rehabilitation and Improvement Program requires that all applicants must be first time homebuyers.
With the Federal Home Loan Bank of New York's Homebuyer Dream Program, participants can obtain a grant up to a $9,500 towards down payment and closing cost assistance to eligible first-time home buyers purchasing a home through one of their approved community- member lenders. Additionally, the program offers up to $500 towards the defrayment of homeownership counseling costs.
New York State’s NYSAR Housing Opportunities Foundation, Inc. offers qualifying homebuyers the opportunity to receive a grant, which is designed to assist with closing costs and/or down payments. The Housing Opportunities Foundation Individual Grant Program is in the form of a gift . Repayment is not required.
The Troy Homebuyer Incentive Program (HIP) makes funds available for down payment and/or closing cost assistance, via the Rensselaer Country Homebuyer Program.
The State of New York Mortgage Agency (SONYMA) Down Payment Assistance Loan (DPAL), which is available for all buyers using a SONYMA mortgage program, can provide the initial funding needed to purchase a home.
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