New York First-Time Homebuyer Programs: Complete Guide

Buying your first home in New York can feel overwhelming—but with the right support, it’s possible. This complete guide to New York first-time homebuyer programs outlines state, city, and nonprofit grants, low-interest loans, and helpful resources designed to ease your path to homeownership.

Whether you’re looking for down payment assistance, mortgage tax credits, or starter loans, take advantage of these programs to bridge your budget gap and land the keys to your first home.

Major New York First-Time Homebuyer Programs

1. SONYMA (New York State Mortgage Agency) Programs

The State of New York Mortgage Agency offers several first-time and low-income homebuyer options.

• Achieving the Dream: 30-year fixed-rate mortgage with as little as 3% down, 1% borrower contribution, and optional down-payment assistance.
  
• Low Interest Rate Program: Competitive interest rates with just 3% down and extended rate locks—120 days for existing homes, 240 days for new construction.
  
• Conventional Plus: Bundles a Freddie Mac HomeReady loan with down-payment & closing-cost assistance, available to a wider range of income levels.
  
• Down Payment Assistance Loans (DPAL): Forgivable second mortgage up to $15,000 (3% of purchase price or $3,000 minimum), 0% interest, forgiven after 10 years.
  
• FHA Plus: Pair an FHA-insured 30-year fixed loan with SONYMA’s down-payment help.
  
• Other Options: Remodel NY (for fixer-uppers), Homes for Veterans, Graduate to Home Ownership, and Neighborhood Revitalization loans.

2. NYC HomeFirst Down Payment Assistance (NYC HPD)

First-time buyers in NYC’s five boroughs can receive up to $100,000 toward down payment or closing costs on 1–4 family homes, co‑ops, or condos.

Eligibility highlights:

• First-time buyer status, income ≤120% AMI
  
• Mandatory homebuyer education and counseling
  
• Minimum 3% buyer’s own funds
  
• Occupancy rules: 10‑year stay if ≤$40K loan; 15 years if >$40K or city-funded
  

3. Homebuyer Dream Program (FHLBNY Partnered Lenders)

Supported by the Federal Home Loan Bank of New York and local lenders such as AmeriCU, Summit FCU, Lyons National Bank, Jeff Bank, and more.

• Grants up to $20,000–$30,000, plus options like Wealth Builder for minority or first-generation buyers.
  
• Requires a $1,000 personal contribution, income limits (often ≤80–120% AMI), and homeownership education.
  
• Funds available on a first-come, first-served basis from February 10, 2025.
  

4. Local & Nonprofit Grants

• NYS Deferred Loan Program (CDLI): Up to $60,000 0% deferred loan/grant for down payments & repairs in Nassau/Suffolk Counties (income ≤120% AMI).
  
• NYSAR Housing Opportunities Foundation: $2,000 toward down payment/closing costs.
  
• Other county & city programs (Nassau PDAP, Suffolk HOME, Rochester HPAP, Buffalo, Syracuse, Westchester) offering varied assistance .
  

Quick Comparison Table

How to Apply: Step‑by‑Step

1. Check your eligibility using program income & location limits
   
2. Take a homebuyer education/counseling course (mandatory in nearly all programs)
   
3. Get pre‑qualified or pre‑approved through a participating lender
   
4. Decide on the best package (i.e., SONYMA loan + DPAL + Homebuyer Dream)
   
5. Complete required applications & document submission
   
6. Close on your home and follow occupancy rules to maintain forgivable assistance
   

FAQ

Read Next

• A Comprehensive List of USDA Construction Loan Lenders
• How Much Remodeling Is Too Much
  

Final Thoughts

With numerous programs—from state-supported mortgages and down-payment assistance to generous grants—New York’s first-time homebuyers have real options to make homeownership achievable. Start with eligibility checks, commit to your required education, and act fast on grant deadlines, especially programs like Homebuyer Dream which are first-come, first-served.

Take the next step: speak to a lender, enroll in a course, and apply today—your future home awaits!