Westchester County is one of the most expensive real estate markets in New York State. Assembling a down payment and covering closing costs in this market is a significant challenge. However, several programs exist at the state, county, and local levels that can help. 

SONYMA

The State of New York Mortgage Agency (SONYMA) offers 30-year fixed-rate mortgages through two programs: 

• Achieving the Dream carries the agency’s lowest available interest rates and is designed for lower-income buyers.
• The Low Interest Rate Program serves a broader income range with competitive rates. 

Both allow down payments as low as 3%, and the minimum out-of-pocket cash contribution for a buyer can be as low as 1% of the purchase price. SONYMA also offers a Down Payment Assistance Loan (DPAL), a 0% interest forgivable loan that covers up to $15,000 in down payment or closing costs and is forgiven over 10 years of owner occupancy. Note that income and purchase price limits apply and are set by the county.

Westchester County Home Ownership Initiative

The Westchester County Home Ownership Initiative offers $25,000 in assistance to first-time homebuyers. Buyer income has to be at or below 80% of the area median income for the applicable household size. If the buyer stays in the home and remains in compliance with the mortgage terms, there’s no need for active repayment. The Hudson Valley Home Ownership and Revitalization initiative also offers $25,000 for buyers buying and renovating a property in Westchester or the Hudson Valley.

Local Programs and Matched Savings Options

Community Housing Innovations (CHI) offers a First Home Club program that provides a 3-to-1 savings match for first-time buyers building toward a down payment, up to $5,000 in matching grant funds for buyers who save a minimum amount over at least 10 months. 

The City of New Rochelle has its own down payment assistance program for residents, operated through Westchester Residential Opportunities (WRO). WRO also provides free one-on-one counseling for buyers throughout the county, including credit review, financial preparation, and pre-purchase guidance.

Citibank has a lender-paid assistance program in which you can receive up to $7,500 as a lender credit to help defray closing costs.

How to Use These Programs Together

Most of these programs are designed to be combined. A buyer using a SONYMA mortgage can also add in the county Home Ownership Initiative funds, a CHI matched savings grant, and SONYMA’s DPAL, as long as they meet the eligibility requirements for each. 

Contact Houlihan & O’Malley to connect with experienced local agents who can help you evaluate your options in today’s Westchester market.