You may not need to save the whole down payment on your own. New York City, New York State, and Westchester County all offer help for first-time buyers, often as a forgivable loan you never repay if you stay in the home long enough. Here are the main programs as of 2026.
At a glance
| Program | Where | Up to | Type |
|---|---|---|---|
| HPD HomeFirst | NYC (all five boroughs) | $100,000 (or 20% of the price, whichever is less) | Forgivable loan |
| SONYMA DPAL | All of NY State | $15,000 (the greater of $3,000 or 3% of the price) | Forgivable loan, 0% interest |
| SONYMA DPAL Plus | All of NY State | $30,000 for eligible buyers | Forgivable loan, limited funds |
| FHLBNY Homebuyer Dream Program | NY (through participating lenders) | $20,000 in 2026 | Grant, limited funds |
| Westchester County Home Ownership Initiative | Westchester County | $25,000 | Forgivable loan |
HPD HomeFirst (New York City)
The city’s biggest program gives qualified first-time buyers up to $100,000 toward the down payment or closing costs on a 1–4 family home, condo, or co-op in the five boroughs. The amount is capped at 20% of the purchase price.
- Income: household income up to 120% of Area Median Income (AMI), which depends on household size.
- Your own money: you must put in at least 3% of the price from your own funds.
- Education: complete a homebuyer education course with an HPD-approved counseling agency. This is the first step.
- Stay requirement: live in the home at least 10 years for loans of $40,000 or less, and 15 years for larger loans or city-funded loans. Leave early and part of the loan is repaid.
- Inspection: the home must pass a Housing Quality Standards inspection.
Current income limits and the list of counseling agencies are on the HPD HomeFirst page.
SONYMA DPAL and DPAL Plus (New York State)
The State of New York Mortgage Agency (SONYMA) offers below-market mortgages through approved lenders. If you use a SONYMA mortgage, you can add a Down Payment Assistance Loan (DPAL):
- The greater of $3,000 or 3% of the purchase price, up to $15,000.
- 0% interest and no monthly payments. It is forgiven after 10 years if you keep the home and the SONYMA loan.
- Can cover the down payment, closing costs, or upfront mortgage insurance.
- DPAL Plus offers up to $30,000 for eligible buyers while funding lasts.
SONYMA sets income and purchase price limits by county. It also has a Homes for Veterans program with a lower rate for service members and veterans. Details: hcr.ny.gov/sonyma.
Homebuyer Dream Program (FHLBNY)
The Federal Home Loan Bank of New York funds grants for first-time buyers through participating banks and credit unions. In 2026 the main grant is up to $20,000 toward down payment and closing costs. Funds are limited and handed out first-come, first-served each year, so ask your lender early whether they participate.
Westchester County programs
- Westchester County Home Ownership Initiative: $25,000 for income-eligible first-time buyers purchasing a house, condo, or co-op in the county. You must live in the home for a set number of years.
- First Home Club: a matched savings program. You save on a schedule and receive matching funds toward your purchase.
- City of New Rochelle Down Payment Assistance Program: help for first-time buyers purchasing a single-family home in New Rochelle, run with Westchester Residential Opportunities.
See the county’s down payment and closing cost assistance page for current details.
Things to know before you apply
- “First-time buyer” usually means you haven’t owned a home in the past 3 years.
- Start early. Education courses and approvals add weeks. Get your certificate before you make offers.
- Programs can sometimes be combined, but each has its own rules. Your counselor and lender will confirm what stacks.
- Not every building works. Some co-ops and condos don’t accept certain loan types. We check this before you fall in love with a place.
General information, not financial or legal advice. Amounts and limits were checked in September 2026 and change often. Confirm with the program before you rely on them.
Related: First-Time Homebuyers, NYC Buyer Incentives & Rebates, and Closing Cost Estimates. Ready to start? Contact us for a free first-time buyer consultation.