Buying your first home is daunting. Here are some resources to help cut the cost

For first-time homebuyers, the thought of purchasing a house may seem daunting, but having the right tools, knowledge and people to turn to for support can help.

When it comes to handling the expense, there are programs available to house hunters as well as cash grants to make the purchase more accessible.

Isabel Alves, the president of the Dutchess County Association of Realtors and an associate broker with RE/MAX Town and Country, shared her recommendations for homebuyers in search of resources.

First-time homebuyer programs on the local, state and national level

When looking into first-time homebuyer programs, Alves said the programs available depend on your situation. "For instance, income limits apply, and the demands of the seller are a factor as well," she said.

One program for first-time homebuyers Alves recommends is SONYMA — a conventional loan through New York state. Every eligible buyer is entitled to a down payment assistance loan, too.

The process can be cumbersome, but with the SONYMA minimum down payment of 3%, along with the 3% down payment assistance loan, "the buyer essentially has 100% financing," she said.

Alves also compared SONYMA with local county housing entities as well in Dutchess County. "Specifically in Dutchess County, we have Hudson River Housing who does a great job, but those subsidies are offered through them and do update on a regular basis."

With SONYMA, there isn't a limit to how many grants or subsidies a buyer can obtain when purchasing their first home.

Hudson River Housing also offers a group education opportunity for first-time homebuyers through their "First Home Club" program, which covers the home buying process. There is a $100 fee to enroll, but if that presents a barrier, it may be waived if you contact them.

One-on-one free counseling and education as well as pre-purchased programs are available for those looking to purchase their first home.

On the national level, there are first-time homebuyer programs through Fannie Mae and Freddie Mac. Alves said when going through their program, you don't have unlimited access to grant funds.

There is a required 3% minimum down payment, as well as reduced interest rate costs and mortgage interest rate premiums to make the purchase more affordable.

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Other forms of assistance for first-time homebuyers: Cash grants

John Reidy, senior loan originator at PrimeLending, said another way to get some extra help as a first-time homebuyer is in the form of cash grants.

To help with the closing costs, Reidy said there are closing cost assistance programs that pay up to 100% of a first-time homebuyer's closing costs, "including title insurance fees, real estate transfer taxes and mortgage discount points."

"Closing cost assistance is handled outside of the mortgage approval sequence," he said. Interested first-time homebuyers can search the National Council of State Housing Agencies’ website or search local homebuying programs through the U.S. Department of Housing and Urban Development.

Another form of assistance for first-time homebuyers Alves pointed to is the Homebuyer Dream Grant from the Federal Home Loan Bank of New York, which offers a $20,000 grant through participating lenders across the state to eligible first-time homebuyers.

"The best part about it is that it can be paired with any loan program in any lien position," she said.

The caveat is that banks have a limited amount of funds to give out with this program per year. According to Matt LaSpada, residential mortgage specialist of Ulster Savings Bank, they haven't run out of the finite funding.

Other participating banks include Tompkins Community Bank and Hudson Valley Credit Union.

Nickie Hayes:NHayes@poughkee.gannett.com: 845-863-3518

This article originally appeared on Poughkeepsie Journal: Buying your first home? These resources can help in New York