New York First-Time Homebuyer Assistance Programs

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New York is one of the costliest states to buy a residence in the U.S., driven by the high prices in New York City, Westchester and Long Island. As of January 2025, the median home sales price has increased over 10 percent from the year prior, according to Redfin. But even the Empire State has programs to address affordability challenges for would-be homeowners, including first-time homebuyers. Here’s an overview.

New York first-time homebuyer programs

The State of New York Mortgage Agency (SONYMA) offers several types of assistance programs listed below for first-time homebuyers — everyone from college grads to DIYers who need support restoring a home can find help. SONYMA defines first-time homebuyers as those who haven’t owned a primary residence in three years and who don’t currently own second homes here or abroad.

SONYMA Achieving the Dream

For low-income first-time homebuyers, the Achieving the Dream program provides access to low-cost, low down-payment mortgage financing. Borrowers must meet certain credit, employment history, income and savings requirements to qualify. There is a 3 percent down payment requirement (with 1 percent of that required to be contributed by the borrower).

• Requirements

  • Must be a first-time buyer or qualified veteran purchasing in a target area
  • Home must be a primary residence
  • Must complete a homebuyer education course
  • Open to single- and multi-family homes, including condos and co-ops
  • Must not exceed purchase price limits, which vary by region
  • Must not exceed regional income limits, which vary by county

• Pros and cons

  Pros

  • Can be used with other state grants and subsidies with no limit
  • Comes with a 120-day rate lock if you’re buying an existing home or a 240-day lock for a home under construction.
  • Open to multiple property types

  Cons

  • Must contribute 1 percent of own funds toward down payment
  • Property cannot be used for agricultural work
  • Program funds are limited and available on a first-come, first-served basis

SONYMA Low Interest

SONYMA’s Low Interest program offers a lower interest rate on a fixed-rate mortgage for first-time homebuyers in New York State. The program is very similar to the Achieving the Dream program, with many of the same requirements and benefits. The major difference between the two programs is that SONYMA’s Low Interest program has higher household income limits.

• Requirements

  • Must meet household income limits, which range from $105,200 to $218,680, depending on the household size and the home’s location
  • Must not exceed purchase price limits, which vary by region
  • Home must be a primary residence
  • Must complete a homebuyer education course
  • Must be a first-time buyer, an eligible military veteran or buying in a target area
  • Must complete a homebuyer education course

• Pros and cons

  Pros

  • Eligible properties include single- to four-family homes, condos, co-ops and manufactured homes
  • Slightly higher income limit than other programs
  •  Can be used with other state grants and subsidies with no limit
  • Comes with a 120-day rate lock if you’re buying an existing home or a 240-day lock for a home under construction.

  Cons

  • Must contribute 1 percent of own funds toward down payment
  • Property cannot be used for agricultural work
  • Program funds are limited and available on a first-come, first-served basis

SONYMA Homes for Veterans

SONYMA can also help U.S. military veterans and active personnel buy a home through low-cost financing with the Homes for Veterans program. This program is open to active-duty service members, veterans and their spouses or co-borrowers, as well as members of the National Guard and reservists. There are no points or origination fees.

• Requirements

  • Must be an active-duty service member (including National Guard and reservists), veteran or a spouse or co-borrower.
  • Must be able to show the proper identification, including military ID card, Form DD214 and a leave and earning statement.
  • Must make a 3 percent down payment (just 1 percent from your own contributions; you can use a gift or other assistance source for the remaining 2 percent)

• Pros and cons

  Pros

  • If you are a veteran (without a dishonorable discharge), you do not need to be a first-time homebuyer
  • Reduced interest rates
  • May be paired with down payment assistance

  Cons

  • Must contribute 1 percent of own funds toward down payment

SONYMA RemodelNY

RemodelNY provides financing to first-time homebuyers who purchase homes that need repairs. Borrowers can receive financing for the home purchase and renovation, and financing is available for existing one- to four-family homes.

Although you won’t be able to pay for luxury upgrades under this program, it does cover a wide range of repairs. These repairs include things like structural reconstruction, updates that improve the home’s functionality and safety hazard elimination.

Program features:

• Borrowers can get financing of up to 97 percent of the “after improved” appraised value or purchase price plus eligible repairs.
• Financing includes $1,000 minimum eligible repairs with no maximum repair amount.

• Requirements

  • You must use the SONYMA Low Interest Rate or Achieving the Dream programs to qualify

• Pros and cons

  Pros

  • Open to single- and multi-family homes, PUDs and condos
  • No maximum repair amount

  Cons

  • Does not cover luxury upgrades and improvements, such as a new swimming pool, tennis court or outdoor fireplace
  • Cannot be used as a standalone form of financing but must be used with either the Low Interest Rate or Achieving the Dream programs

SONYMA Graduate to Homeownership

Upstate New York college graduates can get help securing an affordable mortgage with their diploma thanks to the Graduate to Homeownership program. If you’re a first-time homebuyer in New York who graduated within the last 48 months with an associate, bachelor’s, master’s or doctoral degree and make under the maximum income allowance, you might be eligible for this program.

• Eligible communities

  • Capital Region (Albany, Glens Falls, Hudson)
  • Central New York (Auburn, Cortland, Fulton, Oswego)
  • Finger Lakes (Batavia, Geneva, Penn Yan)
  • Mid-Hudson (Kingston, Middletown, New Rochelle, Peekskill)
  • Mohawk Valley (Amsterdam, Oneonta, Rome)
  • North Country (Plattsburgh, Saranac Lake, Watertown)
  • Southern Tier (Elmira, Watkins Glen)
  • Western New York (Jamestown, Lockport, Niagara Falls Bridge District, Olean)

• Requirements

  • Must be a first-time homebuyer
  • Home must be a primary residence
  • Must purchase in an approved county and town
  • Must have graduated within four years from an academic program recognized by the U.S. Department of Education
  • Must meet criteria such as having stable employment
  • Must meet regional income limits, which vary by county

• Pros and cons

  Pros

  • Reduced interest rates
  • Can be combined with other SONYMA programs, such as RemodelNY and down payment assistance

  Cons

  • You must buy in an approved community to participate

New York down payment assistance and grants

If you get a loan through the NYS housing authority, you may be able to qualify for help with the down payment too.

SONYMA Down Payment Assistance Loan (DPAL)

The DPAL program offers eligible borrowers down payment assistance via a second mortgage, provided you use it in conjunction with a current SONYMA program. Borrowers can also use these funds to pay for any applicable mortgage insurance premiums. The minimum assistance given is $1,000; the maximum is 3 percent of the purchase price up to $15,000, or $3,000, whichever is higher.

DPAL borrowers pay no interest or monthly payments. The main attraction is that the loan is forgiven after 10 years if the borrower keeps SONYMA funding in place and lives in the home.

• Pros and cons

  Pros

  • Forgivable loan with zero interest
  • No monthly payments
  • Funds can be used for mortgage insurance premiums
  • Can be used for down payment and closing costs

  Cons

  • If you sell the home or refinance before 10 years, you’ll need to repay the loan
  • Using down payment assistance comes with a higher interest rate on your first-time loan
  • Must make a 1 percent contribution to down payment from your own funds
  • Not all participating SONYMA lenders offer this down payment assistance

SONYMA Conventional Plus

SONYMA’s Conventional Plus Program is practically a one-stop shop for mortgage options. It combines Fannie Mae’s HomeReady mortgage with down payment assistance in just one application. Additionally, existing homeowners can use this program to refinance.

If you are considering this loan, run the property address through the FNMA HomeReady Eligibility Tool to determine the income limit for the area.

• Pros and cons

  Pros

  • Open to first-time and repeat homebuyers
  • Funds can be put toward the down payment, closing costs and an upfront single mortgage insurance premium (which would eliminate monthly mortgage insurance payments)
  • Lower monthly payment than a conventional mortgage
  • Multiple property types accepted
  • No borrower contribution toward the down payment required
  • No loan-level price adjustments

  Cons

  • The maximum loan amount for a one-family home is $647,200, which may not be enough in more expensive areas of the state

SONYMA FHA Plus

Both first-time and previous homebuyers in New York can take advantage of FHA Plus, which allows borrowers to combine down payment assistance with an FHA loan for a primary residence. Maximum loan amounts vary by county.

• Pros and cons

  Pros

  • Open to first-time and repeat homebuyers
  • Can be used toward down payment and closing costs
  • Single- and multi-family homes are eligible

  Cons

  • Manufactured homes and co-ops not eligible property types
  • Home must be appraised by an assigned state-certified FHA-approved appraiser
  • Must contribute 1 percent of down payment from own funds

City specific homebuyer assistance programs in New York

Beyond the state’s offerings, homebuyer assistance could be available in the city, town or county you plan to live in, so be sure to research any local programs. Here are a few examples.

New York City HomeFirst Down Payment Assistance Program

Owning a home in New York City is a dream for many — but it can be an elusive one because Big Apple real estate is costly. The HomeFirst Down Payment Assistance Program can help that dream become reality, though. The program provides eligible first-time homebuyers up to 20 percent of the purchase price of a home — be it a house, a condo or a co-op — up to $100,000, toward a down payment or closing costs.

Bankrate insight

The program reopened in March 2024, as of this writing.

• Requirements

  • Must purchase in one of the five NYC boroughs
  • Must be a first-time homebuyer
  • Must complete a homebuyer education course
  • Must use their savings for any additional down payment and closing costs
  • Have a maximum household income of up to 80 percent of the area median income (AMI)
  • Must not exceed purchase price limits, which vary by county

• Pros and cons

  Pros:

  • You can qualify for up to $100,000 in assistance
  • Multiple property types are eligible

  Cons:

  • Must occupy the home as your principal residence for 15 years for loan forgiveness if your loan is greater than $40,000
  • Can be used toward the down payment or closing costs — not both
  • Must contribute 1 percent of the down payment from your own funds

Federal Home Loan Bank of New York, Homebuyer Dream Program

The Federal Home Loan Bank of New York (FHLB of NY) offers a few programs to help its low-income members become homeowners across North America. The Homebuyer Dream Program offers forgivable grants of up to $30,000 to members who are first-time homebuyers.

• Requirements

  • Must meet income requirements (at or below 80 percent of the area median income)
  • Must live in the home as your principal residence
  • Must be members of the Federal Home Loan Bank of New York

• Pros and cons

  Pros

  • Funds can be used toward down payment, closing costs and homebuyer counseling services
  • The loan is forgiven after five years in the home
  • Over 100 participating lenders

  Cons

  • Must be a member of Federal Home Loan Bank or New York to qualify

Suffolk County Down Payment Assistance Program

The Suffolk County Down Payment Assistance Program is a grant (a zero-interest and forgivable loan) open to apply for until April 1, 2025. This program provides up to $30,000 in down payment assistance to those who meet its qualifications and live in Suffolk County.

• Requirements

  • Must file by April 1, 2025
  • Must be a first-time homebuyer
  • Must purchase an owner-occupied single, family residence
  • Must meet income limits (not exceeding 80 percent of the area median income)
  • Must attend a mortgage counseling session at a HUD-certified not-for-profit housing agency within 12 months of the application date

• Pros and cons

  Pros

  • Up to $30,000 offered in down payment assistance
  • Zero-interest deferred loan that is forgiven after 10 years
  • Multiple property types are eligible (single-family residence, condo, co-op and manufactured home)

  Cons

  • Can only use the funds for a single-family residence
  • Funds cannot be used toward closing costs
  • Non-occupying co-borrowers or co-signers are not allowed

Other New York first-time homebuyer loans

On a national level, there are loans geared toward first-time homebuyers that New Yorkers can take advantage of. Some of the loans you can explore include:

• FHA loans: Loans insured by the Federal Housing Administration (FHA) have more lenient financial requirements than other loans. You can get an FHA loan with 3.5 percent down and a credit score as low as 580.

• VA loans: For active-duty military, veterans and surviving spouses, a loan guaranteed by the U.S. Department of Veterans Affairs (VA) is a great option. These loans typically come with lower interest rates and don’t require a down payment.

• USDA loans: Loans guaranteed by the U.S. Department of Agriculture (USDA) also require no down payment, but you’ll need to buy in a designated rural area and meet area-specific requirements.

• HomeReady and Home Possible loans: HomeReady and Home Possible are loan programs created by government-sponsored enterprises Fannie Mae and Freddie Mac. They’re specifically for first-time homebuyers, requiring only 3 percent down and having more flexible income requirements.

Get started

• Research the New York state market: Research New York’s housing market before you start your house hunt. Doing so gives you a better picture of where you can afford to buy and what first-time homebuyer assistance programs are available in those areas.

• Investigate first-time homebuyer assistance programs: It’s smart to read up on first-time homebuyer loans and assistance available nationally to see what else you could qualify for.

• Research mortgage lenders: SONYMA doesn’t issue loans or make application decisions, but they have a vetted list of approved lenders. Talk to individual lenders and read their reviews online to find the best fit for you.

• Shop around for mortgage rates: The Empire State has hundreds of mortgage lenders. Make sure to compare New York mortgage rates and quotes you receive so you can choose the most competitive offer.

• Purchase homeowners insurance: When you buy your first home in New York, you’ll need to get homeowners insurance. You should look for homeowners insurance in New York by comparing highly rated insurers’ offerings, from customer service to types of coverage, to find the most affordable option.

• Explore other first-time homebuyer programs by state