First Time Homebuyer Programs (New York) (insurance, loan, approval, credit)

[cyberphonics]

Every lender/officer I talk to before applying for a loan goes on about how they have such great programs for first time homebuyers. Programs where they'll cover your closing costs! Programs where you can have low or no down payment without mortgage insurance! Programs where you can qualify even with a lower income or little credit history!

But when I actually apply for a mortgage loan, all of these different programs seem not to exist and all I hear is "You can either do a conventional 20% down or standard FHA and that's it" like the fact that I'm a first time buyer doesn't change anything.

I have good credit (800), I have $30k saved to go towards down payment and closing, I'm trying to get a loan of $135k for a home between $135k-$150k, I make $30k a year, I have no dependents, no debt, and I keep getting turned down. Will lenders not offer you first time homebuyer programs if they feel like they can milk more out of you with a more standard loan like they'd give someone who isn't a first time buyer or is it just my crappy luck because of the region I'm in?

I'm trying to buy in Rockland County.

If any of you are lenders, what would you suggest I look for to be able to qualify for what I'm asking for? Is it an unreasonable loan amount to ask for based on my finances? Any advice would be appreciated.

[househunting523]

Originally Posted by cyberphonics

Every lender/officer I talk to before applying for a loan goes on about how they have such great programs for first time homebuyers. Programs where they'll cover your closing costs! Programs where you can have low or no down payment without mortgage insurance! Programs where you can qualify even with a lower income or little credit history!

But when I actually apply for a mortgage loan, all of these different programs seem not to exist and all I hear is "You can either do a conventional 20% down or standard FHA and that's it" like the fact that I'm a first time buyer doesn't change anything.

I have good credit (800), I have $30k saved to go towards down payment and closing, I'm trying to get a loan of $135k for a home between $135k-$150k, I make $30k a year, I have no dependents, no debt, and I keep getting turned down. Will lenders not offer you first time homebuyer programs if they feel like they can milk more out of you with a more standard loan like they'd give someone who isn't a first time buyer or is it just my crappy luck because of the region I'm in?

I'm trying to buy in Rockland County.

If any of you are lenders, what would you suggest I look for to be able to qualify for what I'm asking for? Is it an unreasonable loan amount to ask for based on my finances? Any advice would be appreciated.

Do they tell you your not approved for that amount or that they can't get you approved for any amount?

[cyberphonics]

One wouldn't approve me for more than $115k. We don't have homes in this area that cheap that aren't teardowns I can't afford to repair unless I go farther north well over two hours away from where I work in an area that's not so safe for me and that's not an option when I have no car. Another wouldn't approve me for more than $120k. Same deal.

I asked both about the loans listed on their bank's sites that said they had options that would have more lenient ratios if you have good credit and no debt and they wouldn't even answer me whenever I brought up any of the programs. They kept pushing approval based only a 20% down or an FHA but with strict ratio up to their discretion.

The third said they'd approve me for $135k so I could finally bid on properties. Then they rejected me because all the properties had taxes in the $4k and they said they won't approve me unless they're under $2k which ruled out all of the ones on the market that were in my range.

I asked what I could do and they said they can ignore the taxes if I put down another $10k on top of the $20k I was already putting. I said that money was for closing and asked about the fact that their bank websites say they have first time buyer programs and which ones might help, like the one that says they'll finance your closing costs so that I could use the money I would use for closing for the down payment and again, they wouldn't even answer me every time I brought it up.

They just kept saying, "Either you put more down, find a property with low taxes, or there's nothing we can do." I feel like I'm getting screwed because it's like these places are trying to hide first time buyer options from me or something. They literally skirt around it whenever I bring it up while on the phone and if I mention it in email, they just won't respond.

I don't know what else to do because I'll be homeless if I don't find a place in the next three months and I don't know where else to go as a first time buyer if none of the places will even acknowledge their programs or at least give me a reason why they won't even go over them with me.

Everyone says, "Hey what about government grants?" But the only grants available when I contacted HUD were for rural areas which we aren't and for rebuilding low income communities and projects which none of the regions near me are eligible for.

The last place I haven't tried is Bank of America because I keep hearing they're terrible to work with but at the same time, it's like 90% of the people on this forum talk about them. Do they have good programs? Would they be more lenient? Or are they only talked about here so much because they're a big lender?

I want to know from a lender if the range I'm asking for is unreasonable and if first time buyer programs aren't as easy to get as lenders claim?

[cyberphonics]

Nevermind. I'll just be homeless until I can land a job that pays twice as much so I can satisfy these lender ratio preferences and good luck to me when half of the people I know have been unemployed for over a year because they can't find anything that isn't part time/seasonal minimum wage and some of them, not even that much.

It's funny. I lived three years in an apartment that cost $2100/month when all I was making was $2250/month and I made it work until I relocated. It was tough. I ate a lot of rice lol I had to forego a lot of luxuries, put off a lot of things, but I made it work because you do what you have to do. Yet I can't get financing for a condo that'll cost me $1300/month when I'm bringing in $2400.

The more I deal with policies and restrictions and see how they can hold you back from moving forward in life, the more I understand why people break the law and do things under the table or whatever else they can just to advance or get quick money. Home ownership is a big deal, not just as an investment in your future but as an investment in yourself, in your family's well-being, in your personal growth and success.

It's not just some luxury item people only want for fun so I'm sorry, but if I had to choose between barely keeping my head above water for something I'll never own no matter how much money I pour into it and if I get sick or can't work then I get evicted and have nothing to show for it.

Or barely keeping my head above water (according to other people's living standards...) for something that's mine that I'm paying off with every month of struggle that I'd at least have the option to sell or rent out or do something with if something happened to me and I couldn't pay for it anymore, I'll choose ownership every time because to me, it's worth the risk.

Sorry but I just had to rant lol