First-Time Home Buyer Programs in Orange County, NY: Down Payment Help and Loan Options

By Ammar Iqbal | Real Estate Salesperson, eXp Realty

Many first-time buyers in Orange County think they need 20% down to buy a home. In most cases, that is not true. There are several loan programs and assistance options that can lower your down payment and help with costs. Here is a simple overview of the most common ones. To see what homes cost here, start with my Middletown, NY neighborhood guide.

SONYMA programs

The State of New York Mortgage Agency (SONYMA) offers mortgages for first-time buyers through approved local lenders. Programs such as Achieving the Dream and Low Interest Rate can offer competitive rates and low down payments. SONYMA also offers Down Payment Assistance Loans that can help cover the down payment and closing costs. These programs have income and purchase price limits, so check if you qualify.

FHA loans

FHA loans are popular with first-time buyers because they allow a down payment as low as 3.5% and are more flexible on credit. They do require mortgage insurance, and the home must meet basic safety standards.

VA loans

If you are a veteran, active service member or eligible spouse, a VA loan may let you buy with no down payment and no monthly mortgage insurance. With Stewart Air National Guard Base and West Point nearby, many military families buy in Orange County.

USDA loans

USDA loans offer no-down-payment financing in eligible rural areas. Some of the more rural parts of Orange County may qualify, while larger cities usually do not. You can check a specific address on the USDA eligibility map.

Low down payment conventional loans

Some conventional loans allow first-time buyers to put down as little as 3%. Private mortgage insurance is usually required until you build enough equity.

Other ways to save

• Ask about seller concessions to help with closing costs
• Take a homebuyer education class, which some programs require
• Apply for the STAR property tax credit after you buy

Program rules, limits and funding change often, so talk with a local lender or housing counselor before you start. It also helps to know how much house you can afford and what to expect for closing costs in Orange County.

Next steps

Once you know your budget, browse Middletown homes for sale or explore towns like Goshen and Washingtonville. Buying in Middletown? My first-time buyer guide for Middletown walks through the steps. Own a home you plan to sell? Find out what it is worth. Ready to get started? Reach out and I will help you find the right path.