7 Down Payment Assistance Agencies to Help you Get FREE Money Towards Your First Home
Down Payment Assistance Housing Counseling Agencies in Brooklyn, NY: Everything You Need to Know
Buying your first home can be an intimidating and overwhelming process. On top of this, worrying about coming up with the down payment and closing costs can be a real headache. Just thinking $30,000 here and $20,000 there. These funds add up, and saving this type of cash can take years for some people. Well, there is FREE money out there for first time home buyers. That's right, you heard that correctly.
There are many housing counseling agencies world-wide that can help you qualify for grants, which may cover the majority of your down payment and closing costs. But, most of the time, you will be responsible for at least 1% from your own funds. This means if your down payment and closing costs total $50,000 and your FREE grants cover $50,000, you are still at least responsible for 1% of that $50,000 which is $5,000 in this case.
One of the most popular down payment assistance programs in New York City is the HPD HomeFirst Down Payment Assistance Program, which provides qualified homebuyers with up to $100,000 towards their down payment or closing costs on a 1-4 family home, Condo, Coop in one of the five boroughs of New York City. You can also combine other grants with this program. For instance, SONYMA (State of New York Mortgage Agency) provides a forgivable loan of up to $15,000, and will pay back all or a portion of this loan, if you don't live in the home for 10 years. The sky is the limit!
In order to see what kind of grant and for how much you qualify for, it's best to visit a licensed housing counseling agency. These community based agencies are certified by HUD (Housing Urban Development), and distribute down payment assistance program guidelines and enroll consumers in homebuyer education classes. The counseling agencies will also certify income eligibility for the down payment assistance programs, counsel consumers about different program requirements and certify completion of homebuyer education classes and refer consumers to a participating lender for pre-approval. In most cases, the interest rates provided by these lenders are significantly lower.
To get started, contact any of the following 7 licensed housing counseling agencies in Brooklyn for further assistance.
1. MHANY Management
MHANY Management has served New York City for over 35 years, and is committed to developing, promoting and managing affordable housing opportunities in New York. They also focus on preserving existing housing and takes a community centered approach to all its development initiatives. You can also find some of their affordable housing initiatives on NYC Housing Connect, where you can apply for affordable housing lotteries.
Location: 470 Vanderbilt Ave, 9th FL, Brooklyn, NY 11238
Telephone: (718) 246-8080
Fax: (718) 246-7938
2. NHS of Brooklyn CDC, Inc.
NHS Brooklyn was founded in 1982, in the wake of the "Bank on Brooklyn" campaign, which protested redlining and decreasing lending in several Brooklyn neighborhoods. One particular neighborhood was East Flatbush, where homes were in desperate need of rehabilitation and revitalization. NHS then encouraged resident engagement by promoting housing related seminars and offering loan improvement loan programs. In 2016, the organization became a Community Development Corporation, to better reflect their mission.
Location: 2806 Church Avenue, Brooklyn, NY 11226
Telephone: (718) 469-4679
3. IMPACCT Brooklyn
IMPACCT Brooklyn is a community development corporation committed to helping residents build and create flourishing communities in Brooklyn. The organization's core mission is to preserve and develop affordable housing, support small businesses, promote diversity, and contribute to the greater good.
Location: 1000 Dean Street, Suite 420, Brooklyn, NY 11238
Telephone: (718) 522-2613
Fax: (718) 622-4583
4. Bridge Street Development Corporation
Bridge Street Development Corporation was founded in 1995, and provides civic and economic opportunities to residents of Central Brooklyn, particularly low to moderate income. The organization continues their mission by building partnerships with businesses, government, and other community stakeholders and has become a trusted provider of information, education, housing and social services, as well as a convener of community engagement activities.
Location: 460 Nostrand Avenue, Brooklyn, NY 11216
Telephone: (718) 399-0146
Fax: (718) 399-8602
5. Brooklyn Neighborhood Services
Brooklyn Neighborhood Services has been committed to empowering the Brooklyn community through education and counseling toward financial stability and successful long-term homeownership since 1992. The organization provides thoughtful guidance in home ownership, foreclosure intervention, home maintenance, rental housing, and financial literacy for youth and adults, and equips the Brooklyn community for a promising and more resilient future.
Location: 506 MacDonough Street, Brooklyn, NY 11233
Telephone: (718) 919-2100
Fax: (718) 919-2725
6. Neighbors Helping Neighbors
Neighbors Helping Neighbors was founded in 1990 and is a housing counseling and tenant advocacy organization. Based in Sunset Park, Brooklyn, the organization's advocacy work extends to nearby neighborhoods, including Bay Ridge, Bensonhurst, Coney Island, and Canarsie. The core mission is to promote racial justice while empowering low and moderate income New Yorker's to fight for, secure and maintain quality housing and build financial assets.
Location: 621 DeGraw Street, Brooklyn, NY 11217
Telephone: (718) 237-2017 ext. 151
Fax: (718) 237-5366
7. Grow Brooklyn
Grow Brooklyn was founded in 2007, with a mission of enabling families to grow and preserve their assets and secure their economic future. The organization is an affiliate of Brooklyn Coop Federal Credit Union, a non-profit financial institution that provides affordable financial services in neighborhoods long neglected by mainstream financial institutions. They also offer other professional services including tax preparation and legal services to Brooklyn community members in Central Brooklyn, including Bushwick, Bedford-Stuyvesant, East New York, Crown Heights, and Brownsville.
Location: 315 Grove Street, Brooklyn, NY 11237
Telephone: (718) 418-8232
Fax: (347) 410-5757
Buying a home for the first time can be an overwhelming and expensive process, but it doesn't have to be. Start by contacting a housing counseling agency which can help with qualifying you for available and FREE grants, which will keep more money in your pocket, and also qualify you for a mortgage in which you can afford and you are comfortable with. It's also great to have a real estate agent that can support you along the process.
If you have any further questions about the home buying process in Brooklyn, feel free to get in touch, and I'd be happy to help.