The Ultimate Guide On Getting Home Loans In New York City

Home Loans In New York City

You have found the house of your dreams and decided to move forward with it. Now all you have got to figure out to proceed with the house is to figure out the right types of home loans in New York City. Mortgages can be complex. Figuring out loan terms, interest rates, and down payments can make it confusing to decide what home loan you should opt for.

We have compiled a list of home loans in New York City that you can explore and access. Keep reading to learn everything about home loans ranging from government-based loans to traditional loans.

1- Government-Backed Home Loans in NYC

New York City provides government-based home loans to its citizens who plan to wish on having mortgages with lower interest rates and credit scores. These include FHA, VA, and USDA loans.

i- FHA Home Loans In New York

An FHA loan is a government-backed mortgage that permits borrowers to have little down payments starting at 3.5%. You can still acquire an FHA loan if your credit score is between 500 and 579 as long as you have a 10% down payment. FHA, however, requires a mortgage insurance.

ii- USDA Home Loans

Rural home buyers can get USDA loans with no money down. They’re mostly for low-income borrowers who can’t secure a regular mortgage. These home loans have fewer requirements than other loans, but you must have a consistent income that is sufficient to repay the loan over a 30-year period at a fixed interest rate.

iii- VA Home Loans

Veterans, service members, and certain military spouses can get a VA loan with no money down. Private lenders, such as mortgage firms or banks, make VA loans. Banks do not require you to purchase Private Mortgage Insurance because VA loans are backed by the government.

2- Home Loans In New York For First-Time Homebuyers

Other than the government-backed home loans mentioned above, New York City offers special mortgage programs for first-time homebuyers.

  • HomeFirst: Through New York City’s Department of Housing Preservation and Development, qualified first-time buyers with an AMI of 80% can get up to $100,000 toward their down payment and closing fees.
  • Achieving The Dream: First-time homebuyers with modest incomes can acquire a lesser interest rate and low down payment. 
  • Give Us Credit: The pilot program’s qualification standards for first-time homebuyers are flexible. This is beneficial to those who rely upon non-traditional savings and income sources.
  • SONYMA’s Conventional Plus Package merges 30-year fixed-rate mortgages with SONYMA down payment assistance in a new mortgage program.
  • Low-Interest Rate Program: For first-time purchasers, the State of New York Mortgage Agency (SONYMA) offers a standard mortgage program with down payment requirements as low as 3% and attractive interest rates.

3- The Traditional/Conventional Home Loans

A private lender can provide you with a conventional mortgage. Fannie Mae (the Federal National Mortgage Association, or FNMA) and Freddie Mac are two government-sponsored corporations that offer them (the Federal Home Loan Mortgage Corporation, or FHLMC).

These loans must fulfill the following borrowers’ and lenders’ requirements. A credit score of at least 620 is usually required to meet for a conventional loan. Borrowers having credit scores of 740 or above are eligible for lower down payments and more favorable conventional loan rates.

i- Adjustable-Rate Mortgage

When going for a conventional loan, you can opt for an adjustable-rate mortgage. The interest rate on an adjustable-rate mortgage (ARM) remains fixed for a predetermined period before changing. The amount of years the interest rate stays constant determines the different forms of ARMs. The disadvantage is that the rate may rise at the end of the first-rate adjustment, increasing the payment.

ii- Fixed-Rate Mortgage

In contrast to adjustable-rate mortgages, many prefer opting for fixed-rate mortgages. When it comes to mortgages, a fixed-rate mortgage is one in which the interest rate is fixed throughout the duration of the loan. They can be any duration, but the most common terms are 15, 20, 25, and 30 years. Because the interest rate on a fixed-rate mortgage is fixed for the life of the loan, the monthly payments will continue to stay the same each month and do not change.

Regentology Can Help You Get Home Loans

Regentology is a one-stop shop for all your housing needs. Whether you’re looking to buy or sell properties, get home loans, or insurance. Simply fill out the form. We’ll connect you with the best real estate agent in your region. He/she will help you in getting the best home loans in New York City!


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