The Step-by-Step Process
- Pull all 3 credit scores. AnnualCreditReport.com is free. Lenders use the middle score; if it's under 620, work on it before applying. FHA accepts down to 580 with 3.5% down.
- Get pre-approved with 2–3 lenders. Rate spreads of 0.25% are normal. Compare not just rate but origination fees, points, and lender credits. Don't pay for credit pulls — most lenders waive within 30-day shopping window.
- Apply for SONYMA + check FHA limits. SONYMA's $15K Down-Payment Assistance Loan stacks with FHA. Income limits by county (~$140K for 1–2 person household in Queens/Nassau). Purchase-price limit ~$827K Queens 1-family.
- Sign a buyer-broker agreement. Required since the August 2024 NAR settlement. Negotiable. Sets your buyer-side commission and any retainer. Your agent should explain every line.
- Tour 5–10 properties before any offer. Calibrates your eye. Get familiar with what each price band actually buys in your target neighborhoods. We narrow neighborhoods first, then properties.
- Make a written offer. Includes price, mortgage contingency, inspection contingency, attorney-review rider, time-of-essence clauses. NY uses 10% earnest money — much higher than other US markets.
- Inspection + attorney review. 5–10 business days typical. NY uses lawyers (not title companies) for closings. Inspection findings are normal — repair credits, not deal collapse.
- Loan underwriting + appraisal. 30–45 days typical. Don't open new credit lines, change jobs, or move large sums during this period — any of those can re-trigger underwriting.
- Close at attorney's office. Bring driver's license, certified check for closing costs, and the patience for 1–3 hours of signing. Deed recorded within 14 days.
Key Things to Know
FHA loans accept 580 credit + 3.5% down
Most lenders push conventional even when FHA is the better choice. Get a written rate comparison for both.
SONYMA = up to $15K free
First-time buyer + income/price limits. Stacks with FHA for very low effective down. Money via DPAL forgivable loan.
Multi-family is house-hacking on FHA
Buy a 2-family, owner-occupy one unit, rent the other. FHA self-sufficiency requires rent to cover ~75% of mortgage. Common in Queens.
Co-ops have stricter rules than condos
Board approval, financial DTI requirements (often 28%/36%), and post-closing maintenance reserves. Plan for 6–8 weeks of board package.
NY closing costs run 2–4% buyer-side
Mortgage recording tax (1.8–1.925%), attorney ($1.5–3.5K), title insurance (~0.5–1%), lender fees, prepaid taxes/insurance.
Mansion tax kicks in at $1M+
1% tier from $1M, climbs to 3.9% on $25M+. Paid by buyer in NY State. Often missed in initial budget calculations.
Frequently Asked Questions
For an FHA loan on a $725K Queens median home: 3.5% down ($25,375) + closing costs (~$30K) = ~$55K total. SONYMA's $15K grant cuts the down payment to ~$10K. Plan ~$60K total cash needed conservatively.
FHA: 580+ for 3.5% down (some lenders require 620). Conventional: 620+ minimum. VA: lender-dependent (often 580+). Best rates start at 740+. Check all 3 scores at AnnualCreditReport.com.
Pre-approval to close: typical 60–90 days. Faster is possible (45 days) with cash or strong financing. Co-ops add 4–8 weeks for board package.
FHA: lower credit / lower down / has MIP for life of loan. Conventional: higher credit / can drop PMI at 78% LTV / cheaper long-term if you have 20% down. We model both for every client.
Written contract between you and your agent. Required since Aug 2024 NAR settlement. Sets buyer-side commission. Negotiable — we walk you through it line by line.
Related Resources
Need personal guidance on first-time homebuying?
Nitin Gadura, NYS Salesperson #10401383405. 7+ years experience, $100M+ closed, multilingual. Free consultation.
📞 Call (917) 705-0132