How Can I Afford to Buy a New Home

The Big Question – What does it all mean?

How Can I Afford to Buy a New Home?

So often there are buyers that think that they cannot get a mortgage for a home that they are dreaming of owning. But there are several financing options out there for buyers. Some you may know and others that you may not. It is important to work with a qualified Mortgage professional to assist you through the maze of options that are out there. There are ways to still purchase a new home with very little funds. Here is a quick overview:

FHA:

FHA Financing has become one of the most popular financing options for home buyers. 3.5% Down payment, 6% seller concessions, gift funds and government grants are allowed. No income or location limits.

VA:

0% Down payment, Liberal concessions (all closing costs plus 4% of purchase price for property taxes), gift funds and government grants are allowed. No income or location limits.

Rural Housing:

Rural Housing Financing is a unique option in Western New York and has location limitations. 0% Down payment, can include all closing costs AND repairs up to the appraised value of the home. Income and location based. Income limits based on family size and county.

SONYMA:

New York State funded SONYMA loans are available with 3% Down payment (1% borrowers own funds), Closing Cost Assistance Grant of 3% of mortgage or $3000 whichever is greater, 3% seller concessions and gift funds allowed. Income limits based on family size and county.

Home 97:

3% Down payment (1% borrowers own funds), Closing Cost Assistance Loan of 5% of sale price, 3% seller concessions and gift funds allowed. Income limits based only on county.

Additional Reading:

• Do You have the Credit Score Blues?
• Is this a good time to purchase a home in WNY
• Mortgage Fraud 101
• Documents to gather before meeting with your Mortgage Profession