Little-Known First-Time Home Buyer Programs – Local Banks

If you are still wondering, or thinking, or contemplating about buying your first home and think you need a lot of money to buy, then you need to check out these little-known first-time home buying programs.

I put together this series, with information of some of these programs at a federal, state, county and individual financial institutions.    Working with so many first-time home buyers, I have seen them make the most of these programs, helping them get into their first home, without breaking their bank.  Sometimes, they even have enough money left over to make their house a home, putting their own personal touches. 

This week, we will be looking at the programs from local banks.

Local Banks Programs for First Time Homebuyers

Most homebuyers are not aware of programs that are available that can help you with downpayment and closing costs from local banks.   Here are some programs available from local lenders that work both in New Jersey and Pennsylvania.

OceanFirst Bank

NeighborFirst Program

• Only in selected communities both in NJ and PA based on    
• Applicants must earn less than $108,720 per year
• Offers discounted interest rates
• No additional fees based on credit scores
• Minimum 3% downpayment of purchase price
• No Mortgage Insurance
• First-time buyers can get an additional $6,000 lender credit for closing costs
• For more info, email me at ccr@ccrsellsrealestate.com and I will put you in direct contact to the loan officer. 

Bank of America

Home Grant Programs

• Our America’s Home Grant Program offers lender credit up to $7,500 for closing costs or to buy down the current interest rate (no repayment required)
• Our Down Payment Grant Program offers a grant up to 3% of the home purchase price, up to $10,000 to be used for a down payment in eligible neighborhoods (no repayment required)
• Mortgage insurance is required
• Specific income limits apply
• For more info, email me at ccr@ccrsellsrealestate.com and I will put you in direct contact to the loan officer. 

M&T Bank

   Home Starter Mortgage

• Buy a home with as little as 1% out of pocket for closing costs and finance the rest
• Minium 3% downpayment required with a gift, grant or and M&T secured loan
• Lower interest rates are offered, making your monthly payments affordable
• Available in select counties in NJ and PA
• For more info, email me at ccr@ccrsellsrealestate.com and I will put you in direct contact to the loan officer. 

1^st Colonial Community Bank

   Federal Home Loan Bank Program

• This program offers up to $19,500 towards down payment and/or closing costs
• Income must be less than 80% area median income
• Total household income will be used to qualify
• Qualified buyers must attend homeownership counseling class
• Buyers must invest $1,000 from their pocket into the transaction
• Buyers must live in the purchased property for at least 5 years
• For more info, email me at ccr@ccrsellsrealestate.com and I will put you in direct contact to the loan officer. 

1^st Colonial’s Affordable Mortgage Program

• Can be a conventional with 3% down payment
• No PMI (private mortgage insurance)
• Income must be 80% to 125% of area median income
• Buyers must attend homeownership counseling
• Minimum 620 credit score
• Can be paired with other traditional mortgages

   Redwood Mortgage

 Down Payment Assistance (DPA) Advantage Program

• Down payment assistance is in the form of a grant, from 2% to 3.5% of the purchase price
• No repayment required
• Can be used with the FHA 203b (standard) or FHA renovation programs
• Seller concessions up to 6% of purchase price can be applied towards closing costs
• Minimum credit score of 620
• Buyer income is equal to or less than 140% of median area income
• Buyer must be a first-time home buyer
• Buyer may be current, retired, volunteer in the following professions: first-responders, educators, medical, civil servant, military
• Property purchased must be located in specific neighborhoods
• If none of the above applies, at minimum, income and credit must meet FHA total score card or manual underwriting requirement
• For more info, email me at ccr@ccrsellsrealestate.com and I will put you in direct contact to the loan officer. 

Keep in mind, sometimes that with some of the programs, the funds allotted to them may run out before the end of the fiscal year.  When that happens, potential buyers will have to wait for the new fiscal year for the programs to receive new funding.  Not everyone qualifies for these programs, but it is worth your time to check them out to see if qualifying for any of them is a possibility. 

This is the final week for this “Little-Known Home Buyer Program” series.  Hope this has helped you to see what options are out there that you may be able to take advantage of and may help you get into your first home sooner than you think. 

Also, as I come across new programs for first-time homebuyers, I will be sending out updates.  If you are not already on my e-newsletter “Homebuyer Bits” now that you have completed this series, you will start receiving it. Every week, you will receive tips and advice on buying your first home. It will help you to be the most prepared buyer as you actively start your home search. The newsletter is free to all my clients!

If you are ready to get started on your home search and wanted to start the conversation, reach out me through my email at ccr@ccrsellsrealestate.com to set up a time to chat, or click on the box below.