Key Takeaways
- HomeFirst lends qualified first-time buyers the lesser of 20% of the purchase price or $100,000 for a down payment or closing costs.
- The loan carries 0% interest and is forgiven after 10 years (loans of $40,000 or less) or 15 years (larger loans and all City-funded loans) if you keep living in the home.
- The Mortgage Reports data: 26.8% of New York home buyers who requested mortgage quotes through our site in 2026 described their credit as fair or poor, vs. 35.1% nationwide.
NYC’s HomeFirst Down Payment Assistance Program gives eligible first-time buyers a 0% forgivable loan of up to $100,000, or 20% of the purchase price if that is less, as of November 2026. To qualify, your household income generally must be at or below 120% of Area Median Income ($203,520 for a family of four under limits effective June 1, 2026), you must buy a one- to four-family home, condo or co-op in the five boroughs, and you must live there for 10 to 15 years for the loan to be forgiven, according to the NYC Department of Housing Preservation and Development (HPD).
Check your home buying eligibility. Start hereIn this article (Skip to...)
- NYC HomeFirst at a glance
- Who qualifies for HomeFirst?
- The Mortgage Reports data: How New York home buyers rate their credit in 2026
- How much can you get, and what can you buy?
- How to apply for HomeFirst
- Costs and pitfalls to know before you apply
- How we got these numbers
- NYC HomeFirst FAQ
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NYC HomeFirst at a glance
HPD runs HomeFirst, and Neighborhood Housing Services of NYC (NHSNYC) services it. NHSNYC verifies your income and the property, reserves the funds and releases them at closing. The key terms below come from the HPD program page and the HomeFirst term sheet (dated Feb. 18, 2025), checked November 2026.
| Feature | HomeFirst terms (as of November 2026) |
| Maximum assistance | Lesser of 20% of the purchase price or $100,000 |
| Form | 0% interest forgivable loan |
| Owner-occupancy period | 10 years for loans of $40,000 or less; 15 years for loans over $40,000 and all City-funded loans |
| Income limit | Up to 120% of AMI (e.g., $142,560 for 1 person, $203,520 for 4), effective June 1, 2026 |
| Your contribution | At least 3% of the purchase price from your own funds |
| Minimum credit score | 620; 580 if an FHA lender approves the mortgage |
| Debt limits | Housing costs up to 50% of income; total debt-to-income up to 55% |
| Eligible homes | 1 to 4 family homes, condos and co-ops in the five boroughs, owner-occupied |
| Application fee | $1,650 non-refundable ($250 at submission, $1,400 at closing) |
Who qualifies for HomeFirst?
HomeFirst is for first-time homebuyers buying a home they will live in. HPD sets these core requirements:
- Income: Gross household income at or below 120% of AMI for your household size.
- Assets: Combined household assets can’t exceed the 120% AMI income limit for your family size. Savings, checking, CDs, stocks, bonds and your down payment deposit count. Retirement and college savings accounts don’t.
- Own funds: A down payment or contract deposit of at least 3% of the price from your own money. Gifts can cover no more than 50% of the down payment.
- Credit and debt: A 620 minimum FICO score (580 with FHA financing), housing costs no higher than 50% of income and total debt no higher than 55%.
- Education: A homebuyer education course from an HPD-approved counseling agency, which leads to an HPD certificate.
- Property: The home must pass a housing quality inspection, can’t be bought from a close relative, and the program can’t be used for rehabilitation.
HomeFirst income limits by household size
These limits are 120% of AMI as published by HPD, effective June 1, 2026. HUD updates them each year.
| Household size | Maximum income |
| 1 | $142,560 |
| 2 | $162,840 |
| 3 | $183,240 |
| 4 | $203,520 |
| 5 | $219,840 |
| 6 | $236,160 |
| 7 | $252,480 |
| 8 | $268,680 |
The Mortgage Reports data: How New York home buyers rate their credit in 2026
26.8% of New York home buyers who requested mortgage quotes through The Mortgage Reports in 2026 described their credit as fair or poor, compared with 35.1% nationwide. That matters here because most state assistance programs and the loans paired with them set a minimum credit score, so check this program’s requirements above before you apply.
| Self-reported credit | The Mortgage Reports data: New York home buyers (2,566 requests) | The Mortgage Reports data: all U.S. home buyers (54,285 requests) |
| Excellent | 21.5% | 15.6% |
| Very good or good | 51.7% | 49.3% |
| Fair | 25.9% | 34.2% |
| Poor | 0.9% | 0.9% |
Source: The Mortgage Reports analysis of 2,566 home purchase quote requests submitted through our online mortgage form from Jan. 1 to Nov. 9, 2026. Credit tiers are self-reported; the form offers Excellent, Very good, Good, Fair and Poor, and Very good and Good are counted together. States are assigned by ZIP code. These are people who used our form, not a sample of all buyers.
How much can you get, and what can you buy?
Your loan is the smaller of $100,000 or 20% of the purchase price. On a $400,000 condo, 20% is $80,000, so that would be the cap. On a $600,000 home, 20% is $120,000, so the $100,000 maximum applies. Your lender and NHSNYC set the final amount based on your file.
The home’s price also has a ceiling. For existing homes, the price must be at or below 95% of HUD purchase price limits. HPD lists these limits as effective December 1, 2025, until HUD issues new ones. Newly built or rehabilitated homes use different limits.
| Borough (county) | 1 unit | 2 units | 3 units | 4 units |
| Bronx | $661,000 | $846,000 | $1,025,000 | $1,270,000 |
| Brooklyn (Kings) | $732,000 | $936,000 | $1,134,000 | $1,404,000 |
| Manhattan (New York) | $661,000 | $846,000 | $1,025,000 | $1,270,000 |
| Queens | $699,000 | $894,000 | $1,083,000 | $1,342,000 |
| Staten Island (Richmond) | $661,000 | $846,000 | $1,025,000 | $1,270,000 |
Your first mortgage must also be a fixed-rate, fully amortizing loan with a 15- to 40-year term. HPD caps the loan-to-value at 95% (VA loans excepted) and combined loan-to-value at 115%, and it doesn’t allow interest-only, 100% financing or low-documentation loans.
See what you qualify for. Start here
How to apply for HomeFirst
You apply through an HPD-approved housing counseling agency, which helps you assemble the HomeFirst loan application and documents. HPD lists agencies in every borough on its program page. The process runs roughly in this order:
- Finish homebuyer education with an HPD-approved counseling agency and get your certificate of eligibility.
- Get preapproved by a participating HomeFirst lender (HPD publishes the lender list).
- Find a home within the price limits with a real estate professional, hire a real estate lawyer, and negotiate a sales contract.
- Submit the HomeFirst application through your counselor. Once HPD issues a Notice of Loan Approval, you have 10 days to sign and return it, and the lender must close within 120 days.
Costs and pitfalls to know before you apply
HomeFirst is a loan, not a grant, until the occupancy period ends. If you sell or transfer the home early, you repay the lesser of your net proceeds or the remaining balance. The balance starts shrinking on the sixth anniversary: 20% a year for loans of $40,000 or less and 10% a year for larger and City-funded loans. If you stop living in the home or gave false information, the full loan is due.
Refinancing also has a cost. Under the term sheet, you repay HPD 50% of refinancing proceeds above your original purchase price. Budget for the $1,650 application fee and your 3% contribution, and remember that mortgage rates depend on your credit, down payment, property and lender.
For more city and state options, see our guide to New York first-time home buyer programs and grants.
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How we got these numbers
We took the assistance amount, occupancy periods, income limits, price limits and application steps from HPD’s HomeFirst program page and the HomeFirst term sheet (dated Feb. 18, 2025), both checked Nov. 10, 2026. Income limits are effective June 1, 2026, and price limits are effective Dec. 1, 2025, per HPD. Loan examples are our own arithmetic.
NYC HomeFirst FAQ
Sources: NYC HPD, HomeFirst Down Payment Assistance Program; NYC HPD, HomeFirst Term Sheet (Feb. 18, 2025).
