NY Down Payment Assistance Programs for First-Time Buyers

First-time buyers in New York have several down payment assistance programs to choose from, and the right one depends mostly on where you’re buying. The largest is HomeFirst in New York City, which can forgive up to $100,000. Statewide, the SONYMA Down Payment Assistance Loan adds up to $15,000 to a SONYMA mortgage. The Federal Home Loan Bank of New York distributes grants of up to $30,000 (or $60,000 stacked) through participating banks and credit unions. And cities like Buffalo, Rochester, Albany, and New Rochelle, along with Westchester and Hudson Valley counties, run their own programs on top of all that. Most of these NY down payment assistance programs for first-time buyers require homebuyer education, income under a set limit, and that you live in the home for a number of years for the loan to be forgiven.

HomeFirst in New York City

HomeFirst, run by the NYC Department of Housing Preservation and Development (HPD), gives first-time buyers a forgivable loan of up to $100,000, or 20% of the purchase price, whichever is less, for a home in the five boroughs.¹

Household income can’t exceed 120% of Area Median Income. That’s $136,080 for a single-person household and $194,400 for a family of four. You also have to contribute at least 3% of the purchase price from your own funds, and the property has to pass a Housing Quality Standards inspection.²

The program covers one- to four-family homes, condos, and co-ops, all as owner-occupied. Purchase prices are capped at 95% of HUD limits, which vary by borough. Brooklyn’s single-unit ceiling is $732,000; the Bronx, Manhattan, and Staten Island share a $661,000 cap.²

The loan carries no interest and no monthly payments. It’s forgiven entirely if you stay in the home long enough: 10 years for loans of $40,000 or less, and 15 years for larger loans or any loan funded with city dollars. If you sell or move before the period ends, some or all of the loan has to be repaid.²

A “first-time” buyer here means someone who hasn’t owned a home in the previous three years. Immigration status isn’t considered.¹

To apply, you start with an HPD-approved housing counseling agency. The counselor verifies income eligibility and enrolls you in a required homebuyer education course. After you finish the course, you get a certificate of eligibility that you present to a participating lender for pre-approval. Once you have a signed contract on a property, the counseling agency works with one of two program servicers, Neighborhood Housing Services of New York City or the Center for New York City Neighborhoods, to reserve funds and coordinate closing.²

SONYMA Down Payment Assistance Loan (Statewide)

The State of New York Mortgage Agency runs a statewide Down Payment Assistance Loan, called the DPAL, for first-time buyers anywhere in New York who take out a SONYMA mortgage. It provides up to $15,000, calculated as the greater of 3% of the purchase price or $3,000, at 0% interest with no monthly payments.³

The DPAL is forgiven after 10 years. If you sell or refinance before that, a declining share has to be repaid: the balance owed shrinks by 1/120th for each month you’ve lived in the home. If a sale doesn’t produce enough to cover the amount still owed, the shortfall is forgiven.³

You have to contribute at least 1% of the property value from your own funds, or 3% for co-ops and three- to four-family properties. There’s a trade-off: mortgages that include a DPAL carry an interest rate 0.40 percentage points above SONYMA’s standard rate. That surcharge doesn’t apply to three specific programs, Graduate to Homeownership, Homes for Veterans, and ENERGY STAR. Not every SONYMA-participating lender offers the DPAL, so confirm with your lender before assuming it’s on the table.³

The DPAL rides on top of a SONYMA mortgage, so your eligibility depends on which underlying program you use. The two main ones are Achieving the Dream (aimed at lower-income buyers, with SONYMA’s lowest rates) and the Low Interest Rate Program (higher income ceilings). Under Achieving the Dream, a one- or two-person household in most upstate counties can earn up to $88,160, rising to $155,520 in NYC, Rockland, and Putnam, and $163,200 in Westchester.⁴ The Low Interest Rate Program’s limits run higher, for example $110,200 for one to two persons in most counties and $194,400 in the NYC metro.⁵ Purchase-price ceilings also vary by region and by Target Area status.

If you finished an associate, bachelor’s, master’s, or doctoral degree from a U.S. Department of Education–recognized program within the past 48 months and are buying in a designated upstate community, SONYMA’s Graduate to Homeownership program cuts the rate on DPAL loans by 0.40%, canceling out the usual DPAL surcharge.⁶

Federal Home Loan Bank of New York Grants

The Federal Home Loan Bank of New York’s Homebuyer Dream Program suite is grant money, not a loan, so nothing has to be repaid if you meet the terms. The 2026 allocation is $31.7 million.⁷

There are three tiers:

HDP, up to $30,000, for first-time buyers at or below 80% of Area Median Income.
HDP Plus, up to $30,000, for households earning between 80% and 120% of AMI in New York.
HDP Wealth Builder, up to $30,000, for households at or below 120% AMI who are either first-generation buyers or live in a majority-minority census tract.

Wealth Builder can be layered on top of either HDP or HDP Plus, so a single household can get up to $60,000. You can’t apply to FHLBNY directly. The grants go through 110 participating member banks and credit unions on a first-come, first-served basis in an annual round that typically closes in late November, or earlier if the money runs out. Most lenders will ask for at least $1,000 of your own equity in the purchase and require homeownership counseling through an approved agency.⁷⁸ Individual lenders can add their own requirements, and a given lender may run out of funds well before the round officially closes.

Local City and County Programs

A lot of New York cities and counties fund their own assistance, usually smaller in dollar terms but often stackable with state or federal help.

Rochester

Rochester’s Home Purchase Assistance Program offers up to $8,000 in closing cost assistance to first-time buyers of one- to four-family homes in the city. You need household income under 120% of HUD limits, $1,500 of your own money in the deal, and both pre- and post-purchase homebuyer training. It’s compatible with FHLBNY Homebuyer Dream grants and certain SONYMA programs.⁹

Buffalo

Buffalo’s First-Time Homebuyer Down Payment and Closing Cost Assistance Program provides up to $15,000 as a 0% interest forgivable loan. Sell or move out within five years and you owe the full amount back. Household income has to fall between 50% and 80% of HUD guidelines. Local partners including the University District Community Development Association administer the program, which is funded in part by the state Office of Homes and Community Renewal.¹⁰

Albany

Albany offers up to $14,900 in down payment and closing cost help, with the amount set by need. It’s often paired with home repair funds and runs through the Albany Community Development Agency.¹¹

New Rochelle

New Rochelle’s expanded Down Payment Assistance Program offers up to 19% of the purchase price as a zero-interest deferred loan, forgiven after five years of owner-occupancy. Eligibility is limited to current residents (12 months minimum), full-time workers in the city (two years minimum), business owners, or former residents. Household income can’t exceed 80% of AMI (for example, up to $136,000 for a family of four), and the appraised value maxes out at $604,000.¹²¹³ You need at least 1% from your own funds and one-on-one counseling at a HUD-certified nonprofit.

Westchester and the Hudson Valley

Community Housing Innovations runs several programs in the suburbs north and east of NYC. Its First-Time Homebuyer Grant Program serves Westchester, Nassau, Suffolk, and Dutchess counties, with grants of $32,500 to $60,000 depending on income. Sixty percent goes toward acquisition costs and 40% toward property rehabilitation. The grant is structured as a forgivable second mortgage that clears at 20% a year over five years.¹⁴

Two related Westchester options: the Westchester County Home Ownership Initiative ($25,000, forgivable, for buyers at or below 80% AMI) and the Hudson Valley Home Ownership and Revitalization program ($25,000, with at least 51% directed to renovations and a 10-year occupancy requirement for full forgiveness).¹⁵

A Private-Sector Option

If you don’t fit a public program, some national banks run their own. Bank of America’s Down Payment Grant provides up to $10,000 (or 3% of the purchase price, whichever is less) with no repayment. Its America’s Home Grant adds a lender credit of up to $7,500 for closing costs or a rate buydown. In eligible markets the two can be combined for up to $17,500. Both are limited to first-time buyers (no ownership in the previous three years) and require completing a homebuyer education course. Availability depends on the market.¹⁶

What Most Programs Require

The details vary, but the common threads are consistent:

You need to be a first-time buyer, usually defined as not having owned a home in the past three years.
Household income has to fall under an AMI-based cap. The limits range from 60% AMI for some local programs up to 120% AMI for HomeFirst and HDP Plus.
A homebuyer education or counseling course, often HUD-approved, has to be completed before funds are released.
You have to put in some of your own money, sometimes as little as 1% of the purchase price.
You have to live in the home as your primary residence for a set number of years, or repayment kicks in.

Some programs are designed to stack. Rochester’s program explicitly allows combining with Homebuyer Dream grants and SONYMA financing.⁹ The FHLBNY’s Wealth Builder grant is built to layer with HDP or HDP Plus.⁷ The SONYMA DPAL, on the other hand, can’t be subordinate to another mortgage, which rules out some combinations.³ Confirm compatibility with your lender and counseling agency before you commit to a plan.

Bills Still in the Legislature

A few bills would create additional assistance if enacted. Senate Bill S8675, the CareForce First-Time Homebuyers Act introduced by Senator Patricia Fahy in January 2026, would offer healthcare and social-service workers up to $20,000 in forgivable down payment help plus below-market mortgage rates, forgiven after 10 years of owner-occupancy.¹⁷ Assembly Bill A4089 would provide up to $20,000 for first-time buyers of newly constructed homes priced at $450,000 or less, with repayment triggered by sale or refinance before the original mortgage term ends.¹⁸ Assembly Bill A4098 would set up a first-generation homebuyer program offering up to $15,000 as a zero-interest forgivable loan, with forgiveness tied to five years of occupancy and eight hours of counseling.¹⁹ None have passed yet.

1
ACCESS NYC. HomeFirst Down Payment Assistance
2
NYC HPD. HomeFirst Down Payment Assistance Program
3
NY Homes and Community Renewal. Down Payment Assistance Loan (DPAL)
4
NY Homes and Community Renewal. Achieving the Dream Income and Purchase Price Limits
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NY Homes and Community Renewal. Low Interest Rate Program Income and Purchase Price Limits
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NY Homes and Community Renewal. Graduate to Homeownership Program
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FHLBNY. Homebuyer Dream Program Suite
8
ESL Federal Credit Union. Homebuyer Dream Program Plus
9
City of Rochester. Home Purchase Assistance Program
10
University District Community Development Association. Homebuyers Assistant Programs
11
Affordable Housing Partnership. Down Payment Assistance
12
City of New Rochelle. Down Payment Assistance Program Expansion
13
Ideally New Rochelle. Down Payment Assistance Program Guidelines
14
Community Housing Innovations. Homeownership
15
Westchester County. Down Payment and Closing Cost Assistance
16
Bank of America. Real Estate Center
17
New York State Senate. Senate Bill S8675
18
New York State Senate. Assembly Bill A4089
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New York State Assembly. Assembly Bill A04098