The short answer

New York City's HomeFirst program offers first-time buyers a forgivable loan of up to $100,000, or 20% of the price if that's less, toward the down payment or closing costs. Households can earn up to 120% of Area Median Income, which is $194,400 for a family of four on the program's current table. New York State's SONYMA mortgages can add a 0% down payment assistance loan of up to $15,000, forgiven after 10 years, and in 2026 a DPAL Plus of up to $30,000 for households at or below 60% of AMI while funds last.

Key numbers

HomeFirst maximum
$100,000 or 20% of the price, whichever is less
HomeFirst income limit
120% of AMI; $136,080 for one person and $194,400 for four
HomeFirst first-time buyer rule
No home ownership in the past three years
SONYMA DPAL
Up to $15,000 at 0% interest, forgiven after 10 years
SONYMA DPAL Plus 2026
Up to $30,000 for households at or below 60% of AMI

The programs at a glance

Program Run by Help available Income limit Key conditions
HomeFirst Down Payment Assistance NYC Department of Housing Preservation and Development (HPD) Forgivable loan of up to $100,000 or 20% of the price, whichever is less Up to 120% of AMI First-time buyer; homebuyer education; at least 3% of the price from your own funds; live in the home 10 to 15 years; price limits apply
SONYMA Down Payment Assistance Loan (DPAL) NYS Homes and Community Renewal The greater of 3% of the price (capped at $15,000) or $3,000, at 0% interest and forgiven after 10 years SONYMA program limits Only with a SONYMA mortgage; minimum contribution of 1% (3% for co-ops and three- or four-family homes); adds 0.40% to the mortgage rate
SONYMA DPAL Plus 2026 NYS Homes and Community Renewal Up to $30,000 for down payment, closing costs and mortgage insurance Up to 60% of AMI Opened July 1, 2026; first come, first served

How HomeFirst works

  • Who qualifies. You haven't owned a home in the past three years, your household income is at or below 120% of AMI, and you'll live in the home as your primary residence.
  • What you can buy. A one- to four-family home, a co-op or a condo in any of the five boroughs, within the program's price limits. Existing homes must be priced at or below 95% of HUD's purchase price limits.
  • Your contribution. At least 3% of the purchase price must come from your own funds.
  • Forgiveness. You must live in the home at least 270 days a year for 10 years if the loan is $40,000 or less, or 15 years if it's more. Forgiveness begins on the sixth anniversary of the loan.

How to apply

  1. Contact an HPD-approved HomeFirst counseling agency. The counselor checks your eligibility, enrolls you in the homebuyer education class and certifies your income.
  2. Get pre-approved with a lender that participates in HomeFirst.
  3. Find a home within the price limits, sign a contract, and close with the HomeFirst loan alongside your mortgage.

How SONYMA down payment assistance works

The State of New York Mortgage Agency (SONYMA) offers mortgages for first-time and qualifying buyers through participating lenders. Its Down Payment Assistance Loan has no monthly payments and no interest, and it is forgiven after 10 years. If you sell or refinance sooner, the amount you repay shrinks each month you've lived in the home. Not every SONYMA lender offers DPAL, so ask before you apply.

DPAL Plus 2026 is a larger, limited version for households earning up to 60% of AMI. If you combine it with other grants or subsidies, it is applied after them.

Other ways to lower the cash you need

  • FHA loans with as little as 3.5% down.
  • Conventional loans with as little as 3% down for qualifying first-time buyers.
  • Gift money from family, documented with a signed gift letter.
  • Seller credits toward closing costs, where your lender and the contract allow them.

Questions people ask

Do I have to pay back HomeFirst?

Not if you keep the home as your primary residence for the required period. Forgiveness starts on the sixth anniversary of the loan. If you sell or refinance before the loan is fully forgiven, the remaining balance is due.

Can I use HomeFirst to buy a co-op or condo in Queens?

Yes. HomeFirst covers one- to four-family homes, co-ops and condos in all five boroughs, within the program's price limits.

What counts as a first-time buyer for HomeFirst?

Anyone who hasn't owned a home in the past three years.

Are there programs on Long Island?

SONYMA mortgages and down payment assistance are available statewide, including Nassau County. HomeFirst covers New York City only.

Sources

  1. NYC HPD, HomeFirst Down Payment Assistance term sheet (Feb. 18, 2025)
  2. ACCESS NYC, HomeFirst Down Payment Assistance
  3. NYS Homes and Community Renewal, SONYMA Down Payment Assistance Loan

This guide is general information about New York real estate as of October 30, 2026. It isn't legal, tax or financial advice. Rates, programs and rules change, so confirm the details of your purchase or sale with your attorney, lender or tax advisor.