The present housing market in the state of New York can be challenging for first time home buyers, especially for single mothers. The price of the real estate market is soaring high with each passing day and for single moms in New York it can be difficult to navigate the house-buying process. There are programs and assistance that can offer low-interest mortgages, down payment, and closing cost assistance for eligible low-income home buyers in New York including single moms.
Is There Mortgage Assistance For Single Moms In New York?
Yes, many city, county and federal programs are available for single moms in New York and help them to take a step towards owning a home. Tons of online courses and educational programs will help you to understand and even navigate the home-buying process easily. If you have not purchased a property over the last three years then the agency will consider you to be a first time home buyer.
New York Mortgage Programs For Single Mom Home Buyers
Single moms in New York can avail a lot of programs and resources which offer them down payment and closing cost assistance as well as low-interest mortgages. First-time home buyers in New York can attain their homeownership dream by availing of the following programs.
1. HomeFirst Down Payment Assistance Program
This program offers assistance up to $100,000 towards closing costs or the down payment on a condominium, cooperative, or one-to four-family family home in New York. To qualify for the HomeFirst Down Payment Assistance Program you need to be a first time home buyer in New York, complete a homebuyer education course and fulfill the income guidelines. Eligible single moms applying for this program are required to pay a down payment of a minimum of 3% of the overall purchase price.
2. SONYMA: Achieving the Dream
Achieving The Dream is one of the main programs provided by the State of New York Mortgage Agency (SONYMA) which comes with a low interest rate and down payment requirement as low as 3% along with a 3 years fixed rate mortgage. The State of New York Mortgage Agency provides a 30-year fixed rate mortgage for family homes, condominiums, and cooperatives. Single moms just need to put 3% of the home purchase price down payment and a minimum cash contribution of one person. To qualify for mortgage assistance provided by SONYMA you need to be a first time home buyer with stable employment and a good credit score.
3. SONYMA: Conventional Plus
The State of New York Mortgage Agency provides a Conventional Plus which combines a 30-year fixed rate mortgage along with down payment assistance so that single moms and other low-income people usually fulfill their dream of buying a primary home. You can use down payment assistance towards closing costs.
4. SONYMA: FHA Plus
The SONYMA provides another program known as SONYMA FHA Plus which combines a 30-year fixed-rate mortgage loan along with down payment assistance so that single moms can fulfill their dream of purchasing a primary home.
Federal Programs For Single Mom Home Buyers In New York
The federal government programs are designed for single mothers and low-income home buyers who have limited cash to pay towards a down payment or low credit scores to qualify for credit from other sources. Even though the following mentioned federal programs are available for first-time single-mom home buyers in New York they are also available to repeat homeowners. The mortgages for single moms in New York are for two-to-four-unit properties which are owner-occupied, single-family homes, approved condos, planned unit developments, townhouses and manufactured homes.
1. FHA loans
The Federal Housing Administration is a part of the United States Department of Housing and Urban Development. FHA insures mortgages for single moms and other low-income borrowers with poor credit scores. FHA loans require a down payment of only 3.5% of the home purchase value if you have a credit score of 580 or higher and a competitive interest rate. Single moms with credit scores as low as 500 need to put a down payment of 10%. Moreover, FHA loans available for new home buyers require mortgage insurance of 1.75%.
2. U.S. Department of Agriculture (USDA) Loans
These loans are backed by the United States Department of Agriculture and no down payment is required. Single moms belonging to low-income groups can purchase houses in specified rural areas. You need to pay an upfront guarantee fee as well as an annual fee as mortgage insurance. The USDA directly issues loans to single mothers and low-income families.
3. Department of Veterans Affairs (VA) Loans
Veterans, active duty military members, and eligible surviving spouses are eligible to apply for loans that are backed by the Department Of Veterans Affairs. Single moms in New York can avail of VA loans for purchasing, building, or improving homes and the best thing about these loans is that it includes low-interest rates and like other mortgages they do not require any down payment. For some applicants a one time funding fee may be required which will be later rolled into the mortgage.
4. Conventional Mortgage
Conventional mortgages refer to home loans that are not insured or guaranteed by the federal government. Single moms in New York State can avail of conventional mortgages and must conform to the eligibility requirements set by Fannie Mae and Freddie Mac. The conventional mortgages require a down payment of as low as 3% for low-income home buyers and first time home buyers. Unlike government-backed loans, conventional loans allow borrowers to cancel their mortgage insurance or avoid paying mortgage insurance altogether if they can put at least 20% down.
There are nonprofit homeowner assistance programs and government programs that are available for single moms with low credit scores and low income. The loan pricing and interest rates of the above-mentioned programs are quite competitive. With careful research single-mom home buyers can easily find a mortgage and down payment assistance program that can help them to pay for a house. There are even conventional loans and federally backed loans which are a good fit for buyers with good income and credit scores.