New York FHA Loan Requirements – New York FHA Lenders 2024
Home buyers in New York who need a small down payment or have poor credit scores may be able to purchase a home with an FHA loan. There are many FHA lenders in New York who offer this amazing mortgage, but not all of them participate in all of the FHA loan options available.
FHA loans are perfect for New Yorkers because home prices are higher in some areas and there are many multi-family homes available in New York. With the small down payment requirements, FHA loans make home buying in New York extremely affordable.
We will take you through the New York FHA loan requirements, detail what is needed to qualify, then help you to get pre-qualified. If you already know that an FHA loan is right for you, then we can help you to find lender licensed in NY and get pre-qualified whether you live in the 5 boroughs of New York City, or upstate New York in the Albany, Buffalo or Syracuse areas.
New York Home Buying Information
We are providing this helpful home buying information for the state of NY. Keep in mind these numbers are averages and there are significant differences between the New York metro area versus upstate where costs are lower.
- New York Population = 19.7 million
- Number of housing units = 8.6 million and this includes apartments
- Percentage of housing units that are owner occupied = 54.5%
- Average home value or price = $385,000
- Average mortgage payment including taxes and insurance = $2,850
- Average gross rent = $1,790
- Average travel time to work = 33.3 minutes
These numbers are higher than many other states and are primarily driven by the cost of living in NY and also the higher taxes versus other states. If you live near NYC the numbers for you will be higher while upstate NY properties will cost less and will also have lower taxes.
Types of FHA Loans in New York
There are various types of FHA loans available in the state of New York for both purchases and also refinances. Each of these are for a specific situation that a home buyer or current homeowner may encounter. Although these programs are available, not every lender offers them and the ones who do may have their own unique requirements.
- Standard Purchase
- Standard Refinance
- FHA 203k Rehab (when buying or refinancing)
- FHA Streamline Refinance
- FHA One Time Close Construction Loan
- FHA Cash Out Refinance
- FHA Energy Efficient Mortgage
We will review some of these programs below and will provide additional information.
New York FHA Loan Benefits
These are the benefits of an FHA loan versus a conventional loan:
- Lower credit scores permitted
- Lower down payment requirement
- FHA interest rates are lower than conventional rates
- Gift funds allowed
- Seller closing cost contributions are allowed
- FHA loans are assumable
- Co-signers allowed
- Higher debt to income ratios permitted
William Maier IV – United Mortgage – “FHA loans are more lenient when it comes to credit score requirements compared to conventional loans.”
New York FHA Loan Requirements for 2024
These are the basic FHA loan requirements for this year. All of these must be met to be approved for an FHA loan. If you are not positive on whether you meet these standards or have questions, an FHA lender can help.
- Down payment of 3.5%, or 10% if your credit score is below 580
- 2-year employment history with some exceptions allowed
- Fully document your income for the past two years
- Minimum FICO score requirement of 500 – down payment will vary
- Mortgage Insurance Premium (MIP) is required for every FHA loan
- Maximum debt to income ratio of 43% with exceptions up to 56%
- The home must be your primary residence
- No bankruptcies or foreclosures in the past two years
Eric Jeanette – “The interest rates for FHA loans at this moment happen to be lower than conventional loan rates for borrowers with the same credit scores.”
New York FHA lenders
The best New York FHA lenders will offer every FHA loan product and will accept borrowers who also have poor credit. Below are the things that you should look for in an FHA lender:
- Accept credit scores as low as 500
- Will offer FHA 203k rehab loans
- Will offer down payment assistance
- Will have very few overlays
- Will have competitive rates
Let us help you to find the best FHA lender in your area by completing this FHA loan scenario form with some basic loan scenario information. No credit report will be pulled and we can connect you with the best option.
Here are a few FHA lenders who offer the program in your state:
1. Hudson Valley Credit Union – 4 Tucker Dr, Poughkeepsie, NY 12603 – Contact
2. Wells Fargo – 235 Fair St Kingston NY, 12401 – Contact
3. M&T Bank – 294 Main Street Saugerties, NY, 12477 – Contact
4. Alden State Bank – 6545 Transit Rd, East Amherst, NY 14051 – Contact
5. Seneca Savings Bank – 35 Oswego St, Baldwinsville, NY 13027 – Contact
6. Jovia Financial Credit Union – 1000 Corporate Dr Westbury, NY 11590 – Contact
New York FHA Down Payment Requirements
The down payment requirements for an FHA loan is the same in every state. The minimum requirement for an FHA loan is 3.5% of the purchase price. However, if your credit score is below 580, then the down payment requirement will be 10%.
If you do not have the down payment needed, you can also use gift funds from a relative.
New York FHA Down Payment Assistance
There are various down payment assistance programs in every state. Below is a list of just a few down payment assistance programs that may be available to you in New York. Home buyers will need to contact, and arrange for these programs independently. Lenders will accept the funds from these programs for your down payment but they will not arrange for the down payment assistance.
Albany County Assistance Program
We also have a lender provided down payment assistance option. In this case, you would have the down payment assistance included as part of the total loan package. If you would like to learn more, then contact us.
If you want to learn more, then read our article on FHA down payment assistance.
New York FHA Loan Limits
Every county in the United States has specific maximum loan limits that are set for single family homes, as well as 2-4 unit properties. The limits are set based upon the average home sales value in that county.
The base FHA loan limit for single family residences in New York for most counties is $498,257. Use this FHA loan limit lookup tool to see what the FHA loan limits are in your county.
You will find the closer you get to Manhattan, the larger the loan limits will be due to the high cost of living.
| County Name | Single Family | 2 Units | 3 Units | 4 Units |
|---|---|---|---|---|
| ALBANY | $498,257 | $637,950 | $771,125 | $958,350 |
| ALLEGANY | $498,257 | $637,950 | $771,125 | $958,350 |
| BRONX | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 |
| BROOME | $498,257 | $637,950 | $771,125 | $958,350 |
| CATTARAUGUS | $498,257 | $637,950 | $771,125 | $958,350 |
| CAYUGA | $498,257 | $637,950 | $771,125 | $958,350 |
| CHAUTAUQUA | $498,257 | $637,950 | $771,125 | $958,350 |
| CHEMUNG | $498,257 | $637,950 | $771,125 | $958,350 |
| CHENANGO | $498,257 | $637,950 | $771,125 | $958,350 |
| CLINTON | $498,257 | $637,950 | $771,125 | $958,350 |
| COLUMBIA | $498,257 | $637,950 | $771,125 | $958,350 |
| CORTLAND | $498,257 | $637,950 | $771,125 | $958,350 |
| DELAWARE | $498,257 | $637,950 | $771,125 | $958,350 |
| DUTCHESS | $498,257 | $637,950 | $771,125 | $958,350 |
| ERIE | $498,257 | $637,950 | $771,125 | $958,350 |
| ESSEX | $498,257 | $637,950 | $771,125 | $958,350 |
| FRANKLIN | $498,257 | $637,950 | $771,125 | $958,350 |
| FULTON | $498,257 | $637,950 | $771,125 | $958,350 |
| GENESEE | $498,257 | $637,950 | $771,125 | $958,350 |
| GREENE | $498,257 | $637,950 | $771,125 | $958,350 |
| HAMILTON | $498,257 | $637,950 | $771,125 | $958,350 |
| HERKIMER | $498,257 | $637,950 | $771,125 | $958,350 |
| JEFFERSON | $498,257 | $637,950 | $771,125 | $958,350 |
| KINGS | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 |
| LEWIS | $498,257 | $637,950 | $771,125 | $958,350 |
| LIVINGSTON | $498,257 | $637,950 | $771,125 | $958,350 |
| MADISON | $498,257 | $637,950 | $771,125 | $958,350 |
| MONROE | $498,257 | $637,950 | $771,125 | $958,350 |
| MONTGOMERY | $498,257 | $637,950 | $771,125 | $958,350 |
| NASSAU | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 |
| NEW YORK | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 |
| NIAGARA | $498,257 | $637,950 | $771,125 | $958,350 |
| ONEIDA | $498,257 | $637,950 | $771,125 | $958,350 |
| ONONDAGA | $498,257 | $637,950 | $771,125 | $958,350 |
| ONTARIO | $498,257 | $637,950 | $771,125 | $958,350 |
| ORANGE | $498,257 | $637,950 | $771,125 | $958,350 |
| ORLEANS | $498,257 | $637,950 | $771,125 | $958,350 |
| OSWEGO | $498,257 | $637,950 | $771,125 | $958,350 |
| OTSEGO | $498,257 | $637,950 | $771,125 | $958,350 |
| PUTNAM | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 |
| QUEENS | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 |
| RENSSELAER | $498,257 | $637,950 | $771,125 | $958,350 |
| RICHMOND | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 |
| ROCKLAND | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 |
| SARATOGA | $498,257 | $637,950 | $771,125 | $958,350 |
| SCHENECTADY | $498,257 | $637,950 | $771,125 | $958,350 |
| SCHOHARIE | $498,257 | $637,950 | $771,125 | $958,350 |
| SCHUYLER | $498,257 | $637,950 | $771,125 | $958,350 |
| SENECA | $498,257 | $637,950 | $771,125 | $958,350 |
| ST. LAWRENCE | $498,257 | $637,950 | $771,125 | $958,350 |
| STEUBEN | $498,257 | $637,950 | $771,125 | $958,350 |
| SUFFOLK | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 |
| SULLIVAN | $498,257 | $637,950 | $771,125 | $958,350 |
| TIOGA | $498,257 | $637,950 | $771,125 | $958,350 |
| TOMPKINS | $498,257 | $637,950 | $771,125 | $958,350 |
| ULSTER | $498,257 | $637,950 | $771,125 | $958,350 |
| WARREN | $498,257 | $637,950 | $771,125 | $958,350 |
| WASHINGTON | $498,257 | $637,950 | $771,125 | $958,350 |
| WAYNE | $498,257 | $637,950 | $771,125 | $958,350 |
| WESTCHESTER | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 |
| WYOMING | $498,257 | $637,950 | $771,125 | $958,350 |
| YATES | $498,257 | $637,950 | $771,125 | $958,350 |
Types of FHA Loans in New York
There are various types of FHA loans offered in the state of New York. In addition to the typical purchase or refinance loan, there are other unique programs that we will outline below.
FHA 203k Loans in New York
FHA 203k loans are a great program which will allow you to borrow the money needed to purchase the home plus additional funds needed to rehabilitate or remodel the home. This program is also available in your state and we work with lenders that help with your FHA 203k loan.
One of the great benefits is having the ability to purchase a home while also updating or remodeling it to make it your dream home. This means you can include the cost of paint, kitchen and bath upgrades, or just about anything you want into your loan amount.
If you would like to fully understand how this program works, we suggest reading our article on FHA 203k loans.
FHA Streamline Refinance in New York
The FHA streamline refinance program is available to existing homeowners who would like to refinance for a lower rate while eliminating some of the refinance costs such as an appraisal. You may also get a discount on the mortgage insurance premium which is another advantage.
In addition to the limited amount of paperwork needed, the streamline refinance does not require income documentation or a credit check. The only requirement is that you have made on time mortgage payments for the past 12 months.
For more information, please read our article on the FHA streamline refinance.
FHA Cash Out Refinance in NY
New Yorkers who are looking to pull equity out of their homes can do it with an FHA cash out refinance. You will be limited to cashing out up to 80% of the appraised value of the home.
With the cash out refinance, you must fully document your income. You also must wait at least 12 months after you purchased the home to be eligible to cash out equity.
If you would like to know more, read about the FHA cash out refinance program.
FHA One Time Close Construction Loan in NY
Another great FHA loan program is the FHA One Time Close Construction Loan. With this program, you can purchase a lot and also build your dream home all with just one FHA loan and one closing.
The program will cover the cost of everything including architects, permits, utilities and more. If you already own the lot, the equity can be used towards the down payment.
It really is a great program but it also requires a lot of work on the part of the home buyer.
New York FHA Loan Pre-Approval Process
If you are looking for an FHA loan, there is an optimal process you should follow to get pre-approved.
- The first step is to make sure you have the minimum down payment needed to qualify
- check your credit and try to cleanup anything that is pulling down your scores
- Get a copy of your tax returns for the past two years
- Get copies of your pay stubs for the past month
- Get copies of your last two months’ bank statements
- Speak to an FHA lender about your loan scenario
Speak to a lender early in the process because they can identify opportunities to help with your FHA approval. This should be done months before you start looking for a home. Read more about how to get pre-approved for an FHA loan.
What to Look for in a New York FHA Lender
We take a few things into consideration when looking at which lenders we work with. Some of these also may be, or should be very important to you as you continue shopping for an FHA loan.
A good FHA lender will:
- Allow for credit scores as low as 500
- Provide FHA 203k loans
- Offer competitive rates and fees
- Have a great processing and underwriting team
- Work closely with you throughout the loan process
- Communicate well and will provide you with updates along the way
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New York Mortgage Tax
Something every home buyer needs to know is the state of NY has implemented a mortgage tax. Upon closing your loan, you will owe a mortgage tax in the amount of .75%-2.05% of the loan amount.
This tax is unique to the state of NY and the tax rate will vary by county. This is something you need to consider before purchasing a home in NY. You can find a full list of the mortgage tax rates in NY here.
Frequently Asked FHA Questions
Can I get an FHA loan with a bankruptcy?
In general, you will need to wait two years before applying for an FHA loan after a bankruptcy. However, there are some exceptions which may allow you to apply sooner. Read our article on the bankruptcy waiting period.
Can I purchase a multi-family home in New York with an FHA Loan?
If you plan to live in a multi-family home as your primary residence, then an FHA insured loan is a great way to purchase the property with a low down payment.
Can you get an FHA loan in New York City?
You can purchase a 1 to 4 unit property in New York City with an FHA loan if you are able to meet the standard loan requirements and the property is also FHA eligible.
How to I apply for an FHA Loan in New York?
The first step to applying for an FHA loan in New York is to get pre-qualified and to determine what you can afford. Then, once you know the price range that fits your needs, you can begin shopping for a lender and a home. We put together this home affordability calculator to help get you started.
Are all FHA lenders the same?
Not all lenders who offer FHA loans are the same. They all do not offer all of the FHA programs and their rates and fees may also vary. Most importantly, the individuals who help to process and underwrite your loan will have a huge impact on your FHA loan experience.
