Already in the second month of 2019, and the FHA Down Payment Assistance programs have been announced for each state. These grants and down payment assistance programs are geared to help make the mortgage process more affordable for first-time homebuyers. The rules and benefits vary from state to state so here’s the breakdown for Connecticut, Maryland, New Jersey, New York, and Virginia.

Mortgage Assistance for Homebuyers in Connecticut

  • CHFA Downpayment Assistance Program: The Connecticut Housing Finance Authority (CHFA) offers a Down Payment Assistance Program (DAP) with low interest rates to homebuyers who are eligible for a CHFA first mortgage. This assistance is provided in the form of a supplementary loan with below-market interest rates.
  • Fairfield Homeownership Assistance Program: The Town of Fairfield in Connecticut offers a federally funded Homeownership Assistance Program to help income-eligible, first-time homebuyers who don’t have the funds needed to cover the down payment or closing costs on a home.
  • Hamden First-Time Homebuyer Down Payment Assistance Grant: Hamden’s Office of Housing and Neighborhood Development offers eligible applicants a First-Time Homebuyer Down Payment Assistance Grant. Under this program, qualified individuals receive up to $5,000 in matching funds in down payment assistance.
  • HouseHartford Homebuyer Assistance Program: The HouseHartford Homebuyer Assistance Program was created in an effort to increase homeownership opportunities in the City of Hartford. It offers low and moderate-income homebuyers down payment assistance up to a maximum of $40,000.
  • Statewide Downpayment Assistance Program: The Housing Development Fund and the Connecticut Department of Housing recognize that though many individuals can afford monthly mortgage payments, they don’t have down payment funds available. To help with this issue, they initiated the Statewide Downpayment Assistance Program.

Financial Assistance for Homebuyers in New Jersey

  • HMFA Smart Start: The New Jersey Housing and Mortgage Finance Agency (NJHMFA) aims to make the mortgage process more affordable for first-time homebuyers with the Smart Start program. The program’s purpose is to make funds available for eligible applicants who are interested in purchasing a home but need financial help to pay the upfront costs associated with a mortgage transaction, which include the down payment, closing costs, and prepaid items. While there are no income limits for the Smart Start program, applicants must meet the income limits of the program providing the first mortgage.
  • Smart Start offers assistance with down payment and closing costs in the form of a zero-interest, second mortgage, up to 4 percent of the primary loan amount. For those receiving down payment assistance, there will be an add-on to the interest rate of the NJHMFA first mortgage.

Mortgage Assistance for Homebuyers in New York

  • ACRHA Acquisition/Rehabilitation Grant: The ACRHA grant comes in the form of a forgivable loan, which is meant to assist with purchase and repair of a home. 51 percent of the grant must be used for rehabilitation/repair of the purchased home while the other 49 percent must be used for down payment and/or closing costs.
  • First Home Club Matched Savings Program: With the Federal Home Loan Bank of New York’s First Home Club Matched Savings Program, participants can earn up to $4 for every $1 saved in a qualified account. The returns can amount up to $7,500 in down payment assistance.
  • First Time Home Buyer’s Program: This program is in the form of a second mortgage and provides eligible applicants with a loan of up to 10 percent of the purchase price of the property in order to meet the down payment requirements. The loan has an interest rate of 4 percent with a 5-year term.
  • Home Acquisition Program (HAP): The City of Albany offers to its residents the Home Acquisition Program (HAP). It provides financial assistance to low income households with low annual incomes. Funds can be put towards the down payment and closing costs of the home for a first-time homebuyer who resides in the property being purchased.
  • Homebuyer Incentive Program (HIP): The Homebuyer Incentive Program (HIP) grants assistance of $15,000 and $20,000 to income- eligible applicants, in order to promote homeownership in Troy for low income homebuyers. Troy Rehabilitation and Improvement Program requires that all applicants must be first time homebuyers.
  • Housing Opportunities Foundation Individual Grant Program: New York State’s NYSAR Housing Opportunities Foundation, Inc. offers qualifying homebuyers the opportunity to receive a grant, which is designed to assist with closing costs and/or down payments. The Housing Opportunities Foundation Individual Grant Program is in the form of a gift. Repayment is not required.
  • Rensselaer County Homebuyer Program: The Troy Rehabilitation and Improvement Program’s HomeOwnership Center administers funds for the City of Troy’s Homebuyer Incentive Program and Rensselaer County’s Homebuyer Program in the form of down payment and/or closing cost assistance.

Mortgage Assistance for Homebuyers in Maryland

  • Maryland Mortgage Program: Any homebuyer with a home loan from the Maryland Mortgage Program (MMP) can apply for their Down Payment Assistance program to help make a down payment on the property, pay for closing costs, or satisfy prepaid/escrow expenses.

Mortgage Assistance for Homebuyers in Virginia

  • HOMEownership Down Payment & Closing Cost Assistance Program: HOMEownership Down Payment & Closing Cost Assistance Program helps first-time homebuyers purchase decent homes in Virgina. With this program, the Virginia Department of Housing and Community Development creates long-term, sustainable housing for low-income families.
  • VHDA Down Payment Assistance Grant The Virginia Housing Development Authority (VHDA) offers the Down Payment Assistance (DPA) Grant in order to help individuals get out of the renters trap. They realize that many people who are able to make their monthly mortgage payments, don’t always have enough money saved for a down payment.

Wondering if you qualify? Common sense lending is back. Let one of Heritage Mortgage loan specialists assist you in determining if a Down Payment Assistance is right for you. Call our offices at 800.959.4622.