So after searching through all of the real estate sites and all the digging you found your dream home in Newburgh. With all of the gorgeous architecture, affordable prices, and proximity to NYC…what is not to love? The problem most likely is that your future dream home that you will showcase on HGTV or some other home repair network, is that your dream house has been stripped of all the heating, and been chopped up in to a few apartments, and is in need of a total renovation! So what is a future home renovista like yourself to do? You might ask yourself what assistance is offered to future home owners wanting to repair a historic home in the city of Newburgh?
Well, the city of Newburgh does not offer grants to private home owners to repair their homes. So the following are some of your options:
- 203K HUD Program from the government-2 types
- Community Organizations
- Historic Home Rehabilitation Tax Credit
203k Program has two types: 203k and Streamline 203k
The regular 203k program enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home. Why would you need this? Because the house you want to buy has been vandalized or damaged and a regular bank will not give a loan for these types of houses. What are the limitations? You must be a first time homebuyer. The minimum repairs to apply for this loan must be $5,000. See Q&A for 203k loan here.
The streamlined 203k program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this new product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements. Why would you need this? The same reasons as above, but this program is for more extensive repairs. A lot more paper work is involved and requires inspections and appraisals. See here for a word document with more details.
To benefit from this program you must take out a loan with an FHA approved lender. Click here for a list. With speaking with a few lenders, they usually accept a 3.5% deposit, and you can finance the repairs-but they must be done by a contractor, they can not be done by yourself.
There are some community organizations that are rehabilitating houses themselves that you can try and apply and qualify for . Most times this is for low-income families. Other organizations will help you identify grants and low interest loans that you can qualify for. Overall, this is ideal for low-income/moderate-income families.
Two such organizations helping out big in Newburgh are:
Pathstone and Habitat for Humanity.
Historic Home Rehabilitation Tax Credit:
This program is available to owners of historic commercial, office, industrial or rental residential
buildings. Generally speaking, private homes do not qualify. This might work with your home if your home has 1 or more rental units. The Tax Reform Act of 1986 allows 20% tax credit for the rehabilitation of historic buildings. The final dollar amount is based on the cost of the rehabilitation; in effect 20% of the rehabilitation costs will be borne by the federal government.
To qualify for this your home must be in a depressed area, which the city of Newburgh is. To see if the house you are interested in qualifies for this tax credit, you must call Sloane Bullough at the New York State Office of Parks, Recreation and Historic Preservation at 518-237-8643, ext. 3252. She is only in on Tuesdays and Fridays. Leave a message with the address of the house that you are interested in, and she will contact you if the house applies.
Don’t give up hope and keep digging for resources. Where there is a will there is a way!