First-time homebuyer programs and grants in New York
Senior Content Writer
Quick insights
- New York state’s first-time homebuyer and purchase assistance programs include those offered by the State of New York Mortgage Agency (SONYMA) and Neighborhood Housing Services of NYC (NHSNYC).
- Examples of specific programs are SONYMA’s Achieving the Dream financing and Down Payment Assistance Loan (DPAL), while the NHSNYC offers the HomeFirst program.
- Programs may require homebuyers to meet income and purchase-price limits, complete homebuyer education and use the property as their primary residence.
Imagine unlocking the door to your beautiful home in New York with financial support you may not have been aware of. From statewide grants to city-specific assistance, first-time homebuyers have access to programs that can reduce upfront expenses and open the door to more affordable mortgage options. Eligible homebuyers in New York may receive help with their down payment, closing costs or mortgage financing, depending on income, location and the program’s funding availability. The resources can make stepping into homeownership feel far more achievable.
New York state first-time homebuyer programs
The State of New York Mortgage Agency, commonly called SONYMA, offers mortgage and assistance programs for eligible homebuyers across the state. Program requirements and financial limits may differ based on the prospective buyer’s household size, income, property type and location.
SONYMA programs:
- Achieving the Dream ProgramOpens overlay: This 30-year, fixed-rate mortgage program is designed for qualifying low-income first-time homebuyers and offers flexible down payment options, low fees and competitive financing. Buyers must meet SONYMA income and purchase-price limits, have acceptable credit and stable employment. You have to make a minimum cash contribution of 1% of the value of the property (3% for three- and four-unit dwellings and for cooperative apartments).
- Low Interest Rate ProgramOpens overlay: This program offers a 30-year, fixed-rate mortgage with no points and down payment requirements as low as 3% for qualifying low- and moderate-income buyers. Applicants typically must be first-time homebuyers, meet regional income and purchase-price limits, satisfy SONYMA credit standards and use the property as their permanent residence. The first-time buyer requirement may be waived for eligible veterans or purchases in certain designated areas.
- Down Payment Assistance Loans (DPAL): Buyers using an eligible SONYMA mortgage may receive a 0% interest loan with no monthly payments that could be forgiven after 10 years. DPAL (Standard)Opens overlay is generally the greater of $3,000 or 3% of the purchase price, up to $15,000, and the loan may be forgiven after 10 years if program requirements are met. DPAL Plus 2026Opens overlay is up to $30,000, usable for down payment, closing costs, and single-premium mortgage insurance (until the mortgage reaches 80% LTV).
- RemodelNYOpens overlay: This SONYMA option allows eligible homebuyers to finance a home purchase and qualifying renovation expenses through one mortgage. It can be combined with the Achieving the Dream or Low Interest Rate programs, but the property, borrower and proposed improvements must satisfy SONYMA requirements. It is available for existing single- or multi-family (1-4) homes, co-ops and condos.
Because income and purchase-price limits vary across New York, buyers should review the current guidelines for their county before applying. Someone buying a home in New York City or on Long Island may face different limits than a buyer purchasing in Rochester or another upstate market.
Regional and city programs in New York
In addition to statewide assistance, some cities and counties offer programs tailored to local home prices and community needs.
New York City (HomeFirst):
The HomeFirst Down Payment Assistance ProgramOpens overlay provides qualifying first-time homebuyers with up to $100,000 toward a down payment or closing costs. This is a maximum; the amount (if any) may depend on several factors. Assistance may be used to purchase an eligible single or multi-family (1-4) home, condo or cooperative in one of New York City’s five boroughs, including Brooklyn.
Applicants must generally meet the following criteria:
- Be a first-time homebuyer
- Meet household income requirements
- Complete an approved homebuyer education course
- Contribute personal savings toward the purchase of the home
- Obtain a mortgage through a participating mortgage lender
- Use the property as their primary residence
- Meet the program’s occupancy and affordability requirements
HomeFirst assistance is structured as a forgivable loan, and homebuyers must satisfy the program’s continued occupancy requirements to avoid repayment.
Rochester (Home Purchase Assistance Program)
The Rochester home purchase assistance programOpens overlay provides grants of up to $8,000 to help income-eligible first-time homebuyers cover down payment or closing costs.
Applicants must typically:
- Be purchasing a home within the City of Rochester
- Qualify as a first-time homebuyer
- Meet household income limits
- Complete required homebuyer education or counseling
- Contribute their own funds toward the transaction
- Receive an approved mortgage for the remaining purchase amount
- Occupy the home as their primary residence
Grant availability and the exact amount awarded may depend on the buyer’s financial need, the property and available city funding.
Westchester County: First Home Club
Westchester County lists the First Home ClubOpens overlay as a savings-based assistance option for first-time homebuyers. Participants deposit money into a dedicated savings account and may receive matching funds to help with a down payment or closing costs. Prospective homebuyers generally must:
- Meet the program’s definition of a first-time homebuyer
- Stay within applicable household income limits
- Establish a consistent savings plan
- Complete homebuyer education and counseling
- Obtain an eligible mortgage
- Purchase and occupy the home as their primary residence
Program availability, matching amounts and participating financial institutions may change. Potential homebuyers may want to contact a participating housing counselor or lender before relying on the funds.
Applying to New York first-time homebuyer programs
It’s helpful to investigate assistance early, ideally before making an offer. Many programs require education, lender approval or an eligibility review before closing—each stage can take time.
The general steps you may need to follow include:
- Reviewing your finances. Check your credit score, income, savings, assets and current debt levels to determine how much home you may be able to afford.
- Estimating your upfront expenses. Use a mortgage calculator to compare your estimated down payment and closing costs with the potential support available through state or local programs.
- Confirming your first-time buyer status. Many programs define a first-time homebuyer as someone who has not owned a primary residence during the previous three years, although definitions and exceptions can vary.
- Researching programs by location. Check both statewide SONYMA programs and local options in the city or county where you plan to purchase.
- Completing homebuyer education. Enroll with a program-approved or HUD-approved housing counseling agency when required.
- Gathering your documentation. Prepare recent pay stubs, tax returns, bank statements, employment records, identification and information about your existing debts.
- Contacting an approved lender. SONYMA mortgages are offered through participating mortgage providers that can review your eligibility and help match you with an appropriate program.
- Request assistance before closing. Do not assume grants can be added after your mortgage or purchase has already been finalized.
- Review repayment and occupancy rules. Some assistance is forgiven over time, while other funds may need to be repaid if you sell, refinance or stop using the property as your primary residence before the required period ends.
- Keep funds available for other costs. Assistance may not cover home inspections, moving expenses, immediate home repairs, maintenance or every expense due at closing.
In summary
New York offers several financial resources to help make homeownership more accessible, from statewide SONYMA mortgages and down payment assistance to local programs. The right option will likely depend on your monthly income, savings, credit, intended location and property type. Whether you’re considering buying a home in Brooklyn, Long Island or an upstate community, you can compare program requirements.
Speak with an approved lender or housing counselor to confirm your eligibility and current funding availability. To support your homebuying journey, Chase Home Lending Advisors are here to help.
