As housing costs rise, down payment support programs expand options for buyers
Southold proposes a new down payment assistance program offering up to $135,000 to help qualified buyers overcome rising home prices and make homeownership more attainable.
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Buying a home remains a major milestone for many Long Islanders. However, rising prices and limited inventory have made that dream increasingly difficult to reach.
A new proposal in the Town of Southold aims to help make homeownership more attainable by assisting qualified buyers with one of the biggest barriers: the down payment.
“Homeownership is a dream in itself,” said Donneil Reed Harris, project and grant coordinator with the Long Island Housing Partnership.
The program would provide eligible buyers with a loan of up to $135,000 toward a home purchase. The funding would come from $1.4 million in the town’s Community Housing Fund and would cover up to 18% of the purchase price. To qualify, the home would have to cost $750,000 or less.
The assistance comes as home prices across Long Island continue to challenge buyers, especially first-time homeowners. In Southold, the average home price is currently around $1.1 million, according to Zillow. Over the past two years, only about 120 homes in the town have sold for $750,000 or less.
“There’s going to have to be some workarounds and figure it out, in terms of those values,” Harris said.
Southold’s proposal joins other down payment assistance efforts already available in Suffolk County.
The Towns of Brookhaven and Islip, along with both counties, have programs designed to help buyers with upfront costs. However, only Brookhaven is currently accepting new applicants.
For some prospective buyers, additional assistance could make a major difference.
“The market rates here are pretty ridiculous,” said Plainview resident Maximillion Balmaceda. "Seeing stuff for people under 30 or in their 30s would be helpful. Taxes here are extremely expensive. You get what you pay for, but it would be nice to see more affordable housing all around.”
The Southold Town Board still needs to finalize details of the proposed program before it can move forward.
Click here to find out more about assistance programs the Long Island Housing Partnership offers.
