New repair program could give homebuyers an edge in New York’s competitive housing market

When it comes to buying a home, many New Yorkers are often outbid by all cash buyers in the city’s hypercompetitive real estate market or by speculators seeking to turn a quick profit.

The Neighborhood Revitalization Program (NRP), created by Governor Andrew M. Cuomo and sponsored by the State of New York Mortgage Agency (SONYMA), is designed to give New Yorkers an edge by providing eligible homebuyers with a $20,000 forgivable loan for repairs and improvements on vacant homes in New York City.

Typically, repair costs can be a barrier to purchasing a home. But NRP gives families better access to homeownership opportunities with additional money to cover the cost of needed home improvements. For instance, NRP funds can be used to repair or update a kitchen or help to fix a roof. And any leftover money can be used to pay down the mortgage principal.

NRP also opens the door to a 30-year fixed rate SONYMA mortgage and a low-cost down payment requirement between 1% and 3%. This means a homebuyer purchasing a $450,000 single family home can put down 1% or $4,500 at closing.

The ability to apply for other grants makes home purchases even more affordable. For example, SONYMA’s Down Payment Assistance Loan (DPAL) provides eligible buyers with up to $15,000 for down payment costs. And additional repair assistance — up to $40,000 — is available through the New York State Affordable Homes Corporation (AHC).

In sum, buyers who qualify for NRP, DPAL, and the maximum AHC amount have up to $75,000 to help purchase and repair a single-family home and up to $115,000 to purchase and repair a two-family home.

As part of their eligibility requirement for the Neighborhood Revitalization Program, homebuyers must work with a housing counselor. To learn more and to find out if you qualify, call the Center for NYC Neighborhoods at 311 or 646-786-0888.