New York State Announces New Homebuyer Assistance Program
Are you hoping to buy your first home in 2021? If the answer to that question is yes, then you may be able to get some help from New York in turning that hope into a reality.
New York State Homes and Community Renewal and the State of New York Mortgage Agency (SONYMA) have recently announced a series of new programs to help first-time homebuyers in new york reach the dream of homeownership.
SONYMA's new DPAL Plus Program (Down Payment Assistance Loan Plus) offers help to first time homebuyers with down payment and closing cost assistance. Depending on the individual financial circumstances of the person applying for the program, qualified applicants can get up to $30,000 towards those costs.
The financial assistance comes in the form of a forgivable loan. The loan has no monthly payments and comes with a 0% interest rate. If the applicant purchases a 1-to-4 family home in New York and stays in the house for at least 10 years, the loan is fully forgiven. If the applicant moves out of the house, or sells it, before the 10 years expire, then they have to pay back the loan.
In addition to the new DPAL Plus Program, SONYMA also announced a new pilot program to help people improve their credit. Give Us Credit is designed to help communities in New York State that has been historically underserved combat the effects of being excluded and redlined for so many years. According to officials from SONYMA, Give Us Credit aims to:
- Reimagine the metrics and standards that are used to evaluate who is considered creditworthy
- Consider non-traditional forms of income in evaluating an applicants ability to pay
- Take into consideration how historical patterns of economic discrimination may have shaped an applicants credit history