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Buying · New York City

Do I qualify for NYC HomeFirst down payment help?

Check NYC HomeFirst rules (120% AMI, first-time buyer, price limits, 3% own funds) and estimate your forgivable loan and cash gap.

Updated October 12, 2026 · fact-checked against official sources

HomeFirst eligibility
Likely eligible once you finish the course
Estimated HomeFirst loan: $60,000, forgiven after 15 years of living there (15 years if the City funds it).
  • Income at or under 120% AMILimit for 3 people: $183,240. You entered $150,000.
  • First-time homebuyerYou must not have owned a home in the past three years.
  • Primary residenceYou must live there at least 270 days a year and list it as your only address on tax returns, voter registration and ID.
  • Not buying from a relativeBuying from a parent, child, sibling, in-law, cousin or other listed relative disqualifies you.
  • Price within HPD limitExisting-home limit for a 1-unit home in this borough: $699,000. Some "Exception Areas" and new construction have different limits.
  • Liquid assets within the limitCash, CDs, stocks and bonds (including your down payment money) may not exceed $183,240, the income limit for your household size. Retirement and college savings do not count.
  • At least 5% down on the first mortgageThe primary mortgage may not exceed 95% of value (VA-guaranteed loans excepted), must be fixed-rate and fully amortizing, from a participating lender.
  • 3% of the price from your own fundsYou need at least $18,000 of your own money as down payment or contract deposit.
  • Homebuyer education courseRequired before you get the HPD certificate. Take it with an HPD-approved counseling agency.
Cash needed (down payment + closing costs)$78,000
Maximum HomeFirst loan (lesser of 20% of price or $100,000)$100,000
HomeFirst loan you would use$60,000
Your own money needed (at least 3% of price)$18,000
HomeFirst processing fee$1,500
Savings left after closing$30,500

A screening estimate based on HPD's published rules. An HPD-approved counseling agency and a participating lender make the actual determination.

How the checker works

HomeFirst is a forgivable 0% loan from the NYC Department of Housing Preservation and Development (HPD) for first-time buyers. The checker tests your answers against each rule HPD publishes, then works out how much of the loan you could actually use. You must pass every rule. One failed rule means you are likely not eligible.

  • Income: gross household income at or under 120% of Area Median Income for your household size.
  • First-time buyer: you have not owned a home in the past three years.
  • Owner occupancy: the home is your primary residence, where you sleep at least 270 days a year.
  • Price: an existing home at or under HPD's purchase price limit for its borough and number of units.
  • Your own money: at least 3% of the price, as down payment or contract deposit.
  • Asset limit: liquid household assets (cash, CDs, stocks and bonds, including your down payment money) no higher than the 120% AMI income limit for your household size. Retirement and college savings do not count.
  • First mortgage: a fixed-rate, fully amortizing loan of 15 to 40 years from an HPD-approved participating lender, at no more than 95% loan-to-value (VA loans excepted). Mortgage brokers cannot be used.
  • Education and inspection: an HPD-approved homebuyer course, and a home that passes a housing inspection.

The loan is the lesser of 20% of the price or $100,000. The calculator never uses more than you need: it subtracts your required 3% from the down payment plus closing costs, and HomeFirst covers the rest up to the cap.

HomeFirst income limits (120% AMI, effective June 1, 2026)
Household sizeMaximum income
1 person$142,560
2 people$162,840
3 people$183,240
4 people$203,520
5 people$219,840
6 people$236,160
7 people$252,480
8 people$268,680
Source: NYC HPD, HomeFirst Down Payment Assistance Program

Worked example

A household of three earns $150,000 and wants a $600,000 condo in Queens. The income limit for three people is $183,240 and the Queens one-unit price limit is $699,000, so both tests pass. The lender wants 10% down ($60,000), and closing costs are about $18,000, so the buyers need $78,000 in cash.

Their maximum HomeFirst loan is $100,000 (20% of $600,000 is $120,000, so the $100,000 cap applies). They must put in 3% of the price themselves, which is $18,000. HomeFirst covers the remaining $60,000. Add the $1,500 processing fee and they need $19,500 of their own savings. Because the loan is over $40,000, they must live in the home for 15 years for it to be forgiven.

How to apply

  1. 1

    Take the homebuyer course

    Sign up with an HPD-approved housing counseling agency, listed by borough on the HomeFirst page.
  2. 2

    Complete the HomeFirst application

    The counseling agency helps you prepare it and HPD issues a certificate of eligibility.
  3. 3

    Get pre-approved with a participating lender

    HomeFirst works only with private financing from an HPD-approved participating lender.
  4. 4

    Find a home and sign a contract

    Hire a real estate attorney, make sure the price is within the limit, and schedule the housing inspection.

Next steps

Work out how much home you can carry with the home affordability calculator, price your closing costs with the NYC closing cost calculator, and see other help in our guide to first-time homebuyer programs in New York.

Common questions

What is the HomeFirst income limit in 2026?

HPD lists a maximum household income of 120% of Area Median Income, effective June 1, 2026: $142,560 for one person, $183,240 for three and $203,520 for four. The limit was 80% AMI before HPD expanded the program in 2025.

How much can HomeFirst give me?

The HomeFirst Term Sheet sets the loan at the lesser of 20% of the purchase price or $100,000. It is a 0% loan you can use for the down payment or closing costs.

Do I have to pay HomeFirst back?

Not if you keep living in the home as your primary residence for the full term. Loans of $40,000 or less are forgiven after 10 years and larger loans after 15 years; City-funded loans have a 15-year term regardless of size. If you sell earlier, the amount owed shrinks each year starting at the sixth anniversary.

Who counts as a first-time homebuyer?

Under the HomeFirst Term Sheet, someone who has not owned a home in the past three years.

Can I use HomeFirst for a co-op?

Yes. HomeFirst covers 1–4 family homes, condos and co-ops in the five boroughs, as long as the price is within HPD’s limits and the home passes a housing inspection.

Fact-checked October 12, 2026

Income limits (120% AMI, effective 6/01/26), purchase price limits for existing homes (HUD, effective Dec 1, 2025), 3% own funds, $100,000 cap, 10/15-year occupancy and inspection rule from the HPD program page. Loan = lesser of 20% of price or $100,000, 3-year first-time definition, 270-day residency, familial purchase exclusion and $1,500 fee from the Term Sheet dated 05.11.2026. Asset limit (liquid assets ≤ 120% AMI income limit), 95% max LTV (VA excepted), 50% gift cap and sale recapture schedule added from the Term Sheet. 120% AMI expansion (from 80%) confirmed in HPD release of Jan 30, 2025. Worked example re-computed: $600k Queens condo, 10% down + $18k closing = $78k cash; $60k HomeFirst, $18k own + $1,500 fee = $19,500.

Sources

  1. HomeFirst Down Payment Assistance Program · NYC Department of Housing Preservation and Development (accessed October 12, 2026)
  2. HomeFirst Down Payment Assistance Program Term Sheet (05.11.2026) · NYC Department of Housing Preservation and Development (accessed October 12, 2026)
  3. NYC Announces $82 Million Investment to Make Homeownership Within Reach for More New Yorkers · NYC HPD (accessed October 12, 2026)

General information, not legal, tax or financial advice. Rules change; confirm with the agency or a professional before you act.