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Your Bank > Education and Advice > CNB University

First-Time Homebuyer: What Type of Mortgage Is Best for Me?

C Spaker
Christopher R. Spaker, AMP
President, CNB Mortgage Company
(585) 385-2370 x50955


I'm a first-time homebuyer, and I don't have a lot of cash to put down on a house. What type of mortgage would be best for me?


If you are a first-time homebuyer and don't have a lot of money for a down payment on a home, you may want to consider obtaining a mortgage through a government mortgage lending program such as those offered through the Federal Housing Administration (FHA) and the Department of Veterans Affairs, formerly known as the Veterans Administration (VA). Generally, these types of mortgage programs are an excellent choice for first-time homebuyers with moderate incomes, because the interest rates are set below current rates and little or no down payment is required. Consult your mortgage lender to see if you are eligible for either an FHA or VA mortgage.
In addition to government mortgage lending programs, many mortgage lenders offer special programs for first-time homebuyers that require little or no down payment. Shop around and compare the mortgage rates and terms that various lenders offer to find a mortgage that is geared toward first-time homebuyers.
Another great option for individuals who have little or no cash available for a home is The First Home Club which is a program financed by the Federal Home Loan Bank of New York (FHLBNY) to assist individuals and families in earning a grant up to $7,500 toward down payment and closing costs associated with a first home purchase. Assistance may be granted to participants who successfully establish a dedicated savings account at any participating bank and make regular deposits into the account during a 10 to 24-month period, depending on discretionary income.

The Federal Home Loan Bank of New York will provide four dollars in matching funds for every dollar saved in a dedicated savings account to qualified first-time homebuyers. Participants are required to make equal systematic monthly or bi-weekly deposits. The amount and duration will be determined at enrollment and listed on the participants’ enrollment terms and conditions form. At the time of enrollment participants will also be required to attend a homebuyer counseling program.

In order to receive the matching grant funds the participant must adhere to the established savings schedule. Participants must remain in the house for at least five years; if the home is sold before the five years are up, participants will be required to repay a portion of the grant funds back to the Federal Home Loan Bank of New York.

Participants must obtain a mortgage through the bank in which they complete their savings plan. Approximately one or two months before the end of the savings plan, participants must qualify for a mortgage before grant funds will be awarded. Maintaining the First Home Club savings account does not guarantee a mortgage approval or approval of the grant.

Contact either NeighborWorks of Rochester¹ or The Housing Council² to determine your household’s eligibility and learn the steps of how to participate in the First Home Club program.

  1. NeighborWorks of Rochester (585) 325-4170
  2. The Housing Council (585) 546-3700
  3. CNB Mortgage Company: Pittsford (585) 385-2370 Canandaigua (585) 394-9100

Source: ©2016 Broadridge Investor Communication Solutions, Inc. This material provided by Christopher R. Spaker, AMP.

Home Town Funding d/b/a CNB Mortgage Company - Licensed New York Mortgage Banker, NYS Department of Financial Services, NMLS ID 213408

CNB Mortgage Company is a wholly owned subsidiary of Canandaigua National Bank & Trust.