Mortgage in New York
New York is home to the Big Apple, plenty of lakes, and some of the best people you will ever meet. It is truly a state that has everything. You can live in one of the densest cities globally, or you can live in some of the most rural areas of the United States. As you might expect, New York has above-average home prices , thanks mostly to New York City. If you're looking to move to the Big Apple, Buffalo, or any city in between, make sure the move is affordable with our New York mortgage calculator.
New York Mortgage Calculator: You Have Some Options
Future and current New York State residents should know about three primary mortgage types.
- New York conventional mortgage: Conventional mortgages can either be conforming or non-conforming (also called jumbo loans). In NYC, most loans will be jumbo due to the housing costs. These loans usually require at least 20% down and a credit score in the 700s. NYC condos often have egregious condo association fees, so make sure you budget for those as well. If you're looking to live outside NYC, you can usually get a conforming loan that requires as little as 3% down and a minimum credit score of 620.
- New York FHA mortgage: FHA loans are challenging to get in NYC due to the housing prices. However, in other parts, FHA loans provide an accessible mortgage for as little as 3.5% down and a 580+ credit score. If you have 10% down, you can even have a credit score between 500-579!
- New York VA mortgage: Veterans and current military service members can access mortgages with as little as 0% down and no private mortgage insurance. The VA backs these loans, but you don't apply for them with the VA - you use with a bank.
While the above mortgages are standard in NY State, there are also assistance programs first-time homebuyers should know.
First-Time Homebuyers in New York
The Homes and Community Renewal division of New York State offers three main programs to make homeownership more affordable for first-time homebuyers.
Achieving the Dream
Achieving the Dream is the lowest interest rate offering. It provides eligible homebuyers with a 30-year fixed-rate, low-interest mortgage, no points, and a minimum down payment of 3%.
Eligibility Criteria: Income and property limitations apply. Applicants will need good credit and stable employment. Additionally, buyers must plan on using the home as their primary residence.
Low Interest Rate
The "Low Interest Rate" program is identical to Achieving the Dream, except that the rates are higher (but still well below market), and the income limits are also higher. For example, in Buffalo, Achieving the Dream has an income restriction of $60k or below. However, this program works for buyers with incomes up to $80k.
Eligibility Criteria: The same criteria as Achieving the Dream applies. The only difference is that higher-income households can use this program.
New York State provides a down payment assistance loan for a minimum of $1,000 and a maximum of 3% of the purchase price (max $15,000) to eligible homebuyers. The state forgives the entirety of the loan after ten years, and there are no monthly payments.
Eligibility Criteria: The same criteria apply as the base mortgage product (either Achieving the Dream or the Low Interest Rate program).
New York Mortgage Calculator: See What You Can Afford
New York (both the state and the city) are genuinely the lands of opportunity. With world-class dining, educational facilities, and entertainment, New Yorkers are lucky to call their state home. Use our New York mortgage calculator to see what you can afford in this beautiful state!