May 06, 2013

How to Buy a Home with a Low Down Payment


Purchasing a home with a low down payment is important for a number of reasons, including the buyer's ability to have extra cash left over for closing costs, decorating expenses, upgrades and/or other essentials needed to turn their new house into a home. Thanks to the level of competition between mortgage lenders, it's now easier than ever to buy a home with a low down payment.

First-Time Homebuyers  There are a lot of perks to being a first-time homebuyer, including the ability to get in the door with a low down payment. Many lenders will ask for a down payment as low as five percent (3.5 percent for FHA loans) to those looking to purchase their first home.


A first-time homebuyer is someone who has rented their previous home(s) or has never purchased a house on a permanent foundation. Individuals who have owned manufactured homes may also be eligible for a first-time homebuyer loan, but the final decision is up to each individual lender.


FHA Loan  This type of loan is guaranteed by the Federal Housing Authority (FHA) and allows for a smaller down payment than many conventional loans. In addition to offering down payments as low as  3.5 percent of the total purchase price, FHA loans often carry lower interest rates and are easier to qualify for. This type of loan is ideal for first-time homebuyers, individuals with past credit problems or even those who wish to purchase a second home.


SONYMA Loan  The State of New York Mortgage Agency (SONYMA) offers five mortgage programs to assist first-time homebuyers with the purchase of a home in New York State.  SONYMA offers a mortgage product that finances both the purchase and renovation of a home in need of improvements or repairs. Learn more about the Own it, Fix it New York! Home Mortgage.

  1. Homes for Veterans Program
  2. Remodel New York
  3. Achieving the Dream
  4. Construction Incentive Program
  5. Low Interest Rate Program


The five mortgage programs feature competitive interest rates, low down payment requirements, flexible underwriting guidelines, no prepayment penalties and down payment assistance. Each of these features is designed to make your home purchase more affordable. All SONYMA loans are financed through the sale of tax exempt bonds.

*First-time Homebuyer is defined by SONYMA as not owning your primary residence during the past three years. The first-time homebuyer requirement is waived for eligible US military veterans and applicants who purchase a home in a Federally-designated Target Area.


The first step on the road to home ownership is having a knowledgeable lender on your side.  My team of lenders are able to provide my clients with the options listed above and more. Together we can help you find the product that is best suited to your individual needs so that you can begin your home search with confidence.

So whether you are a first-time home buyer or you are a home owner thinking of trade up, contact me for further information to learn more about these and other programs designed to help you with the first important step.
Preparing Buyers & Sellers for Today's Real Estate Market
[ Phone: (914) 374-8454) or Email: Akim.Smyer@cbmoves.com ]
Exceeding Your Expectations Since 1998!