- The down payment assistance I offer comes from private programs available through lenders I work with, not state, county or other government programs.
- Depending on the program, assistance may be a second loan that must be repaid. I will explain how any program you may qualify for works before you commit.
- Most programs look at household income, purchase price and whether you will live in the home.
- Many are built for first-time buyers, but the definition is broader than people expect.
- Terms and availability vary by program and lender and can change, so check eligibility before you start making offers.
What is down payment assistance?
Down payment assistance is money that helps cover the cash you need to buy, either for the down payment itself or for closing costs. The assistance I can pair with your loan comes from private programs available through lenders I work with, and I can help you see whether you may qualify and how it would fit with the rest of your financing.
The cash to close is the wall most first-time buyers hit here. Income is often fine. Credit is often fine. It is the pile of money needed on closing day that stops people, and that is exactly what these programs are designed to address.
Private programs I can offer
The down payment assistance I offer comes from private programs available through lenders I work with. These are not New York State, county, town or other government programs, and they are not affiliated with or endorsed by any government agency. I match you with a lender and a program that fit your situation. The assistance itself is provided through that program and lender, not by me or Scott Capital Group.
Terms, eligibility and availability vary by program and lender. Every program is subject to credit, income, property and underwriting guidelines, programs can change or end without notice, and not everyone will qualify. Before you commit to anything, I will show you how a program you may qualify for would work with your loan.
Kevin and the team were great and helped us secure a mortgage to purchase our first home! They walked us through the entire process step by step and were available to answer any questions we had. I would definitely recommend.
Down payment help in New York City, Westchester, Rockland and Putnam
The private programs I offer go through lenders, not a county, so I can check what may fit wherever you’re buying in New York.
How down payment assistance works: grants and second loans
Down payment assistance usually comes in one of three shapes. These are general descriptions, not the terms of any particular program, including the private programs I offer.
- A grant. Money that is not repaid. Grants are the least common and usually the smallest.
- A forgivable second loan. A second mortgage that is forgiven once you have lived in the home for a set number of years.
- A deferred second loan. A second mortgage that is repaid later, usually when you sell, refinance or pay off the first mortgage.
The difference matters most if you plan to move or refinance soon. With a forgivable loan, leaving early can mean repaying part of it. I will tell you which type a program uses before you commit to anything.
Who qualifies for down payment assistance
Guidelines vary, but most programs weigh the same handful of things: household income against a local limit, the purchase price against a program cap, whether the home will be your primary residence, and your credit profile.
Most programs are aimed at first-time buyers, and that term is broader than it sounds. Many define a first-time buyer as someone who has not owned a home in the past three years, so people who owned years ago can qualify again. Some programs also carve out exceptions for veterans and for buyers purchasing in targeted areas.
What assistance can and cannot do
It can reduce the cash you bring to closing, and in some cases it can cover mortgage insurance costs, which lowers your monthly payment. It cannot fix a debt-to-income ratio that does not work, and it does not replace the reserves some loan programs require you to have left over after closing. To see what price range your income, debts and savings support on a Nassau or Suffolk purchase, try my affordability calculator.
Assistance also has to be layered correctly with your first mortgage. Not every first mortgage accepts every assistance program, which is one reason to work this out before you write an offer rather than after. My guide to FHA loans on Long Island covers how FHA treats gift funds and approved assistance.
Timing
The private programs available through lenders I work with can change or end without notice. If assistance is part of your plan, check eligibility early and be ready to move when a house comes up. My Nassau County and Suffolk County guides cover the local loan limits, property taxes and closing costs that shape how much cash you need.
How to get started
Send me a few basics: household income, roughly where you are looking, your credit range and how much cash you have saved. I will tell you whether you may qualify for a private down payment assistance program through one of the lenders I work with, what its current guidelines look like and what your payment would be with and without assistance. That conversation costs nothing and usually takes fifteen minutes. If you then want a pre-approval, it takes only a soft credit check, so it will not affect your credit score. Use the quote form below, or call or text 631-250-6930.
In the meantime, you can estimate your monthly payment with the mortgage calculator and use the first-time home buyer guide to start gathering the documents you will need to apply.
Frequently asked questions
Is down payment assistance free money?
Not always. In general, some programs offer grants that are not repaid, while many provide a second loan that is either forgiven over time or repaid when you sell, refinance or pay off your first mortgage. These are general descriptions, not the terms of any particular program, including the private programs I offer; terms vary by program and lender. I will tell you how a program works before you apply.
Can I use assistance with an FHA or VA loan?
Often yes, depending on the program and the lender. Some assistance pairs with specific first mortgages only, so the two have to be matched up front.
Do I have to be a first-time buyer?
Usually, but not always. Many programs count you as a first-time buyer if you have not owned a home in the past three years, and some make exceptions for veterans or for purchases in targeted areas.
Can a mortgage loan cover the down payment?
Not the first mortgage itself. The down payment is the part of the price your mortgage doesn’t cover, and lenders want to see where that money came from. A gift or an assistance program, which is often a second loan, can help, and a low down payment loan such as FHA shrinks what you need. An unsecured personal loan generally can’t be used.
This article is for general information only and is not a loan offer or commitment to lend. The down payment assistance programs I offer are private programs available through third-party lenders I work with; they are not New York State, county, town or other government programs and are not affiliated with or endorsed by any government agency. Terms, eligibility and availability vary by program and lender, are subject to credit, income, property and underwriting guidelines, and may change or end without notice. Not all applicants will qualify. All loans are subject to credit and property approval.