First-Time Homebuyer Programs in New York State

New York first-time buyers have five main official sources of help: the State of New York Mortgage Agency (SONYMA), which offers fixed-rate mortgages plus a 0% down payment assistance loan; New York City’s HomeFirst program, which lends up to $100,000; and the federal FHA, VA and Fannie Mae/Freddie Mac low-down-payment loans. Most buyers combine a mortgage from one of these with a down payment program from another.

Search results for “New York first-time homebuyer grant” are crowded with lender ads. This page lists only government and government-sponsored programs, with limits taken from the agencies’ own pages as of October 2026.

SONYMA mortgages

SONYMA is part of New York State Homes and Community Renewal (HCR). It doesn’t lend directly. You apply through a participating lender, and the loan follows SONYMA’s rules. Its two main first-time buyer products are 30-year fixed-rate loans:

• Achieving the Dream is the lower-income program; HCR calls it SONYMA’s lowest interest rate program. It covers one-family homes, condos and co-ops, and two- to four-family homes at least five years old.
• Low Interest Rate Program has higher income limits and covers one- to four-family homes, condos, co-ops and manufactured homes.

Both allow down payments as low as 3%, with a minimum cash contribution from you of 1% (3% for co-ops). Both require you to be a first-time buyer unless you are an eligible military veteran or buying in a federally designated Target Area. Both say other grants and subsidies can be layered on. Loans with less than 20% down need mortgage insurance.

SONYMA limits in New York City

SONYMA’s limits are set by county. All five NYC counties share the same figures, and Target Area income limits are the same as the non-Target figures in NYC. These apply to reservations accepted from July 6, 2026:

Household size counts everyone who will live in the home, including children of any age. New two-family homes qualify only in Target Areas.

SONYMA Down Payment Assistance Loan (DPAL)

DPAL is an add-on that only works with a SONYMA mortgage. It is a 0% loan with no monthly payments that can pay your down payment, closing costs and mortgage insurance premiums.

• Amount: the greater of $3,000 or 3% of the price, up to $15,000 (minimum $1,000). It can’t exceed your actual down payment and closing costs, and you still put in at least 1% of the value in cash (3% for co-ops and three- or four-family homes).
• Forgiveness: forgiven after 10 years. If you sell or refinance sooner, the amount due drops by 1/120 for each month you have lived there; any shortfall in sale proceeds is forgiven.
• Cost: a mortgage with DPAL carries a rate 0.40% higher than one without, except under Graduate to Homeownership, Homes for Veterans and ENERGY STAR.
• Not every SONYMA lender offers DPAL. Ask before you apply.

HCR also lists DPAL PLUS 2026: up to $30,000 for households earning up to 60% of AMI, usable until the first mortgage reaches 80% loan-to-value. It is first-come, first-served until the money runs out, so check with HCR or a SONYMA lender that funds remain.

NYC HomeFirst

If you are buying in the five boroughs, HPD’s HomeFirst program is usually the largest single source of help: the lesser of 20% of the price or $100,000, as a 0% loan forgiven after 10 or 15 years. Income must be at or below 120% of AMI ($142,560 for one person and $203,520 for four, effective June 1, 2026). You must not have owned a home in three years and must take an HPD-approved course. Full rules are in our HomeFirst guide.

Federal and national loan options

FHA loans

FHA loans are insured by HUD and made by private lenders. HUD says the down payment can be as low as 3.5% on a one- to four-unit home. HUD’s credit rule: with a minimum decision credit score of 580 or higher you can get maximum financing; from 500 to 579 the loan is capped at 90% of the value (10% down). FHA isn’t limited to first-time buyers. For co-op and condo specifics, see FHA and VA loans for NYC condos and co-ops.

VA loans

If you have a VA Certificate of Eligibility, a VA-backed purchase loan needs no down payment as long as the price doesn’t exceed the appraised value, and there is no private mortgage insurance. A one-time VA funding fee may apply. With full entitlement there is no VA loan limit; the lender still decides how much you can afford. You must live in the home.

Fannie Mae HomeReady and Freddie Mac Home Possible

These are conventional loans from regular lenders, aimed at lower-income buyers. Both cap qualifying income at 80% of the area median income for the property’s location and allow as little as 3% down (up to 97% loan-to-value, under conditions). Both can be used for one- to four-unit homes, condos and co-ops (HomeReady co-op loans only through lenders authorized to deliver them). For HomeReady, homeownership education is required when every occupying borrower is a first-time buyer.

Side-by-side comparison

How the programs combine

• SONYMA mortgage + DPAL is the state’s built-in pairing. DPAL can’t be used with any other first mortgage.
• HomeFirst + a first mortgage: HomeFirst requires a fixed-rate loan from an HPD-approved lender that meets FHA, Fannie Mae or Freddie Mac underwriting.
• SONYMA + HomeFirst: SONYMA’s program pages say other grants and subsidies can be included with no limit. Whether a specific SONYMA loan meets HomeFirst’s lender rules is a question for a lender on both approved lists.

How to get started

1. 1

   Work out your household income and size

   Use gross income for everyone who will live in the home. Compare it to the SONYMA, HomeFirst and 80% AMI limits above.
2. 2

   Take a homebuyer course

   HomeFirst requires an HPD-approved course; SONYMA recommends counseling. One course from an HPD-approved agency covers HomeFirst.
3. 3

   Talk to lenders on the official lists

   Ask each one which of SONYMA, DPAL, HomeFirst, FHA, VA, HomeReady and Home Possible it offers, and get a Loan Estimate for each option.
4. 4

   Check the building

   Before signing for a co-op or condo, confirm the building meets the lender’s and program’s rules.
5. 5

   Budget closing costs

   Even with help, you will pay taxes and fees at closing. See our NYC closing costs guide.

Run the numbers with the HomeFirst checker, FHA loan calculator and VA loan calculator, then read NYC closing costs for buyers.