New York first-time homebuyer programs

HomeFirst Down Payment Assistance Program

New York City residents may qualify for up to $100,000 in down payment assistance as part of the HomeFirst Down Payment Assistance Program. This program is funded by the New York City Department of Housing Preservation and Development (HPD) and is designed to help first-time homebuyers.

The program offers a 0% interest second mortgage to help pay for up to $100,000 toward the down payment or closing costs on a one- to four-unit family home, a condominium or a cooperative in one of the five boroughs of New York City. This loan is completely forgivable should you meet the program requirements.

» MORE: Can I use a personal loan for my down payment?

Qualification requirements

You must be purchasing a home in one of these five New York City boroughs:

• Brooklyn
• Manhattan
• Queens
• Staten Island
• The Bronx

To qualify for this down payment assistance program, you must:

• Be a first-time homebuyer and complete a homebuyer education course taught by an HPD-approved counseling agency.
• Work with an HPD-approved Housing Counseling Agency to complete a HomeFirst loan application.
• Have a maximum household income up to 120% area median income (AMI).
• Provide a minimum down payment or contract deposit of at least 3% of the total purchase price sourced from your own funds.
• Purchase a one- to four-unit family home, a condominium or a cooperative for owner-occupancy in one of the five boroughs of New York City.
• Pass a Housing Quality Standards inspection before purchase.

To have the loan forgiven, you must live in the home for at least 10 years if the loan amount is $40,000 or less. If the loan is more than $40,000 or if it is funded by the city, the required occupancy period is 15 years.

To apply for the HomeFirst Down Payment Assistance Program, you’ll need to contact an HPD-approved counseling agency in your borough.

HomeFirst Down Payment Assistance Program limits

The HomeFirst Down Payment Assistance Program has limits on both home price and income. Income limits are based on household size, and purchase price limits are based on location.

2025 HomeFirst Down Payment Assistance Program income limits

2025 HomeFirst Down Payment Assistance Program purchase price limits

SONYMA mortgage options

The State of New York Mortgage Agency (SONYMA) offers several first-time homebuyer programs to help you buy your first home. The two main ones are called the Achieving the Dream Program and the Low Interest Rate Program, but there are also ones for manufactured homes as well as conventional and Federal Housing Authority (FHA) programs for first-time homebuyers.

There are also option add-ons for each program, such as down payment assistance, remodeling loans and area-specific programs.

» MORE: Best mortgage lenders for first-time buyers

Achieving the Dream Program

The Achieving the Dream Program is designed to help low-income borrowers purchase a home with low interest rates and a very low down payment (as low as 3%). Down payment assistance is available to qualified borrowers.

Qualification requirements

The program is available to first-time homebuyers, but you may still qualify if you’re an eligible military veteran or if you’re purchasing a home in a federally designated Target Area. Target Areas are specific neighborhoods identified by the Department of Housing and Urban Development that may have more flexible program rules.

The property must be located in New York state. Income limits apply, and home purchase prices must fall below designated limits, which vary by location. The property can’t exceed five acres and must have at least 500 square feet of living space, although exceptions may be made on a case-by-case basis. Your income, credit score and job stability will be considered.

To qualify for the Achieving the Dream Program, you’ll need to:

• Occupy the property as a primary residence
• Provide the down payment of 1% to 3% with your own funds
• Have an income below the limit for your location

Low Interest Rate Program

The Low Interest Rate Program is designed to help moderate-income first-time homebuyers purchase a home with flexible eligibility criteria and a low down payment requirement (as low as 3%). Down payment assistance is available to qualified borrowers, and you only need to contribute 1% of the purchase price from your own funds (3% for co-ops).

Qualification requirements

The program is available to first-time homebuyers, but you may still qualify if you’re an eligible military veteran or purchasing a home in a Target Area.

The property must be located in New York state. Income limits apply, and home purchase prices must fall below designated limits, which vary by location. The property cannot exceed five acres and must have at least 500 square feet of living space, although exceptions may be made on a case-by-case basis. Your income, credit score and job stability will also be considered.

To qualify for the Low Interest Rate Program, you’ll need to:

• Occupy the property as a primary residence
• Provide the down payment of 1% to 3% with your own funds
• Have an income below the limit for your location

Other SONYMA programs

There are several other first-time homebuyer programs in New York under SONYMA, including:

• Manufactured Home Lending Program: If you’re a first-time homebuyer purchasing a used or new manufactured home in New York state, this program offers low down payments (as low as 3%), low interest rates and down payment assistance. The community you’re purchasing in must be onboarded by SONYMA before you can qualify for this loan.
• Conventional Plus Program: You can get a conventional 30-year loan combined with down payment assistance to help you purchase a home. Your income must be below 80% of the AMI in your location, and the home must be your primary residence. This program is available for first-time homebuyers and repeat homebuyers.
• FHA Plus Program: You can combine a conventional 30-year FHA loan with down payment assistance to help you purchase a home in New York state. Down payment assistance can also be used to help with closing costs.
• Add-ons: SONYMA programs in New York offer several optional features, including down payment assistance, remodeling loans, programs for veterans, discounts or other assistance for ENERGY STAR-rated homes and appliances, and targeted support for buyers in East Buffalo.

Homebuyer Dream Program

The 2025 Homebuyer Dream Program offers up to $30,000 for down payment and closing costs, including homebuyer counseling, through participating lenders.

Eligible applicants must submit their grant application by Nov. 28, 2025. The program will stop funding when the money allotted for the program runs out, so it’s a good idea to apply as soon as possible.

As of publication, there are no public announcements about a 2026 round. In previous years, enrollment has typically opened in December and closed in January.

Eligibility and application process

For most first-time homebuyer programs in New York, you’ll need to meet income, purchase price and location requirements. Down payment assistance is typically limited to low- and moderate-income households earning below 80% to 120% of the AMI. You’ll also need to complete a first-time homebuyer class or work with a housing counselor.

While most down payment assistance loans are interest-free and forgivable, you may need to live in the home for up to 15 years before the loan is forgiven.

The application process usually starts by connecting with a qualified lender that participates in your chosen program. For example, SONYMA-approved lenders can offer both down payment assistance and mortgage options. Once preapproved, you can begin shopping for a home that meets program requirements, including location and purchase price limits.

After your offer is accepted, you’ll complete your loan application, provide financial documentation and schedule any required inspections. Your lender will guide you through the final steps to close on the home.

» MORE: New York closing costs

Additional resources for low- and moderate-income buyers

If you’re a moderate- or low-income borrower looking for help buying your first home, there are several loan options and assistance programs available outside of New York–specific funding. These include federally backed loans and locally administered housing assistance.

• Conventional loans: Conventional loans offer low down payments (as low as 3%) and competitive rates to qualified borrowers. Sometimes these loans can be combined with state or local down payment assistance programs to help low- and moderate-income families buy a home.
• FHA loans: The Federal Housing Administration backs loans for first-time homebuyers, offering down payments as low as 3.5% and low interest rates on mortgages. The credit requirements are typically lower for FHA loans than conventional, which may help those with less-than-perfect credit get into a home.
• VA loans: If you’re a military veteran, you may be able to get a VA loan with no money down, no loan origination fees and competitive interest rates.
• Housing Choice Voucher homeownership program: Sometimes referred to as Section 8, this program allows eligible families to use their rental voucher to purchase a home and receive monthly assistance with homeownership costs. It’s administered by local Public Housing Authorities and may not be available in all areas.