New York First-Time Home Buyer | 2025 Programs and Grants

What to know about buying a house in New York

Buying a home in New York can look very different, depending on where you want to settle down.

Buying in and around NYC, for example, will cost a lot more than a remote location in upstate NY.

Regardless of location, first-time home buyers in New York state have lots of help readily available. That can range from educational courses to financial assistance with your down payment and closing costs. Here’s how to get started.

In this article (Skip to ...)

• Home buyer programs
• Home buyer grants
• Home buyer key stats
• Home loan options
• Buying in New York’s cities
• Resources
• Mortgage rates

New York first-time home buyer programs

The State of New York Mortgage Agency⁴ (SONYMA) offers statewide assistance to first-time home buyers in NY. This includes affordable mortgage loans, as well as down payment assistance.

SONYMA’s affordable housing programs can be used to finance single-family homes, multi-unit homes, condominiums, cooperatives, and manufactured homes. However, investment properties are not eligible.

In addition to the offerings below, borrowers will also find special FHA and VA loans with SONYMA. Those who purchase a fixer-upper in a designated area may qualify for one of its home renovation or revitalization loans.

SONYMA Achieving the Dream

The Achieving the Dream program offers low-income buyers a 30-year fixed-rate mortgage with just 3% down. You can pair this program with other grants and subsidies. In fact, the minimum cash contribution from the buyer is only 1% out of pocket. The rest can come from down payment assistance (excluding co-op buyers).

SONYMA Low Interest Rate

The Low Interest Rate program offers a mortgage loan with a 3% down payment requirement at a competitive interest rate. Like other SONYMA programs, this one comes with a 120-day rate lock for the purchase of existing homes, and a 240-day rate lock for homes under construction.

SONYMA Conventional Plus

This mortgage program may offer low-income borrowers their most affordable monthly payment. It combines a 30-year-fixed rate loan with down payment and closing cost assistance. Additionally, this program is not limited to first-time home buyers. Existing homeowners can also use the Conventional Plus loan to refinance their current mortgages.

SONYMA eligibility requirements

Home buyers will need to meet eligibility requirements to qualify for SONYMA programs, including:

• Consistent and verifiable income going back two yearsCredit history that “shows a willingness to make your payments on time.” This undefined credit score is probably around 580 or 620, depending on the type of loan you wantEnough income to live comfortably and cover homeownership costsAdhere to household income limits and purchase price limits⁵Use the home as your primary residence

SONYMA has a list of approved mortgage lenders. You will have to get a home loan through one of those to fully participate in its programs.

The agency also says it will put you in touch with “nonprofit housing counseling agencies across New York state to help you navigate the home buying process and prepare for successful homeownership through one-on-one counseling, homebuyer education classes, workshops, and more.”

New York first-time home buyer grants

Home buyer grants are a valuable resource for making homeownership more affordable. If you’re searching for down payment assistance in New York State, we’ve highlighted several options, starting with SONYMA’s DPAL and DPAL Plus programs.

Although these programs begin as loans, they effectively function as grants in the long term. With no monthly payments and zero interest, both loans are fully forgiven after 10 years, providing a significant boost to homebuyers.

You won’t have to pay back a cent as long as you remain in the home for a decade. If you move, sell or refinance that home before the 10 years are up, you’ll have to pay back 1/120th of the amount you borrowed for each month, short of the 120 months that 10 years last.

SONYMA Down Payment Assistance Loan (DPAL)

The SONYMA DPAL is designed to help eligible first-time home buyers with their down payment and closing costs. The standard DPAL lets you borrow 3% of the purchase price (up to $15,000) or $3,000 — whichever is higher.

SONYMA DPAL Plus

The DPAL Plus program is even more generous than the standard version.

DPAL Plus lets you borrow up to $30,000 toward your down payment and closing costs, capped at 20% of the home’s purchase price. By putting 20% down, you stand to get a conventional loan with no mortgage insurance payments.

To qualify for DPAL Plus, your income can’t exceed 60% of the area median income (AMI) where you’re buying. Not sure if you qualify? Download this PDF from SONYMA’s website for maximum eligible incomes by county.

Note that DPAL Plus has limited funding. When it runs out of money, the program will be suspended until new funds are provided. So apply as soon as you’re ready to take advantage of this program.

HomeFirst Down Payment Assistance Program

The HomeFirst Down Payment Assistance Program is administered by the NYC Department of Housing Preservation and Development (HPD). It offers qualified buyers up to $100,000 toward the down payment and closing costs on a 1-4 unit family home, condo, or cooperative in one of the five boroughs of New York City.

This DPA is a forgivable second mortgage. But if you sell or refinance before 10 years, you’ll need to repay the loan in full. That time period jumps to 15 years for loans greater than $40,000.

HomeFirst eligibility requirements:

• 3% down payment (1% must come from the buyer)
• Be a first-time home buyer
• Complete a home buyer education course
• Meet household income limits

You’ll also need to use a participating mortgage lender. HPD provides more details in its HomeFirst brochure⁶.

Homsite’s Mortgage Assistance Program (MAP)

Homsite’s Mortgage Assistance Program (MAP) helps first-time homebuyers overcome the financial hurdle of saving for a down payment and closing costs. If you’re purchasing a home in the City of Auburn, you may qualify for a grant of up to $3,000 to cover these essential expenses. For those who don’t meet income guidelines or are buying outside Auburn, MAP also offers low-interest loans to help make homeownership more attainable.

Cortland Housing Assistance Council

This grant program, available through the Cortland Housing Assistance Council and the Empire Development Corporation, offers financial support to first-time homebuyers. The funds can be used to help cover closing costs and make post-purchase repairs to their new home. To qualify, applicants must meet general eligibility criteria and purchase a single-family home within Cortland County.

INHS Down Payment Assistance

Designed for first-time homebuyers with moderate incomes, the INHS Down Payment Assistance program bridges the gap between what you can afford and the cost of housing. You could receive up to $20,000 in down payment assistance and closing cost support for homes purchased within a designated service area, including Cayuga, Chemung, Cortland, Schuyler, Seneca, Tioga, and Tompkins Counties.

Other DPA and grant options

The grants mentioned above are just a starting point—there may be additional opportunities available. Be sure to check out other homeownership programs in the area where you want to buy.

Resources to find local grants and loans are listed at the end of this article. You can also ask your real estate agent, Realtor, or loan officer about down payment assistance programs near you.

New York home buyer key stats

The median sales price of homes in New York state was $529,900 in October 2024. That increased 7.4% year-over-year, according to Redfin.

However, that figure covers a vast range across different locations within the Empire State. So where you buy in New York may be way more important than statewide averages.

Down payment amounts are based on the state's most recently available average home sale price. “Minimum” down payment assumes 3% down on a conventional mortgage with a minimum credit score of 620.

If you're eligible for a VA loan (backed by the Department of Veterans Affairs) or a USDA loan (backed by the U.S. Department of Agriculture), you may not need any down payment at all.

First-time home buyer loans in NY

If you’re a first-time home buyer with a 20% down payment, you can get a conventional loan with a competitive interest rate and no private mortgage insurance (PMI). Of course, few first-time buyers have saved a 20% down. But the good news is that you don’t need that much. Not even close.

New York home buyers often get into a new home with as little as 3% or even 0% down using one of these low-down-payment loans:

• Conventional 97: From Freddie Mac or Fannie Mae. 3% down payment and 620 minimum credit score. You can usually stop paying mortgage insurance after a few years
• FHA loan: Backed by the Federal Housing Administration. 3.5% down and a 580 minimum credit score. But you’re on the hook for mortgage insurance premiums (MIP) until you refinance to a different type of mortgage, move, or pay off your loan
• VA loan: Only for veterans and service members. Zero down payment is required. Minimum credit score varies by lender but often 620. No ongoing mortgage insurance after closing. These are arguably among the most preferred mortgages available, so apply if you’re eligible
• USDA loan: For those on low-to-moderate incomes buying in designated rural areas. Zero down payment required. Credit score requirements vary by lender but often 640. Low mortgage insurance rates
• SONYMA mortgages: The State of New York Mortgage Agency offers low-cost loans and the possibility of down payment assistance to qualified borrowers. More information below

Note that government loan programs (including FHA, VA, and USDA home loans) require you to buy a primary residence. That means you can’t use these loans for a vacation home or investment property.

In addition, most programs allow you to use gifted money or down payment assistance (DPA) to cover your down payment and closing costs. Depending on the mortgage loan you choose, you could potentially get into your new house with minimal cash out of pocket.

If you’re unsure which program to choose for your first mortgage, your lender or real estate agent can help you find the right match based on your finances and home buying goals.

Buying a home in New York’s major cities

Home prices vary widely among New York State’s biggest cities. Of course, local real estate prices will also impact your down payment and mortgage payments. Here’s what to expect.

New York City first-time home buyers

The median home listing price in New York City was $850,000 in October 2024. That rose 6.4% compared to one year earlier, according to Realtor.com.

If you want to buy a home at that median price, your down payment options might fall between:

• $24,870 for a 3% down payment
• $165,800 for a 20% down payment

Neighborhood Housing Services of New York City, Inc⁷ (NHSNYC) offers 15-year repayable loans to help you bridge the gap between your savings and your down payment requirement. But you’ll have to make monthly payments, and interest is charged on the loan amount.

NHSNYC also has a suite of online home buyer education courses and a free initial consultation.

Buffalo first-time home buyers

The median home listing price in Buffalo was $215,000 in October 2024. That jumped 22.9% year-over-year, according to Realtor.com.

If you want to buy a home at that median price, your down payment options might fall between:

• $6,450 for a 3% down payment
• $43,000 for a 20% down payment

Belmont Housing Resources offers counseling and coaching for homeowners in Buffalo. It can also provide financial assistance of up to $5,000 toward down payments and closing costs.

However, its website provides no information about whether that’s a repayment loan, a forgivable loan, or a grant. Nor does it provide any eligibility information or terms. So your best bet is to call a Belmont counselor at (716) 884-7791 for details.

Rochester first-time home buyers

The median home listing price in Rochester was $185,000 in October 2024. That increased 12.6% year-over-year, according to Realtor.com.

If you want to buy a home at that median price, your down payment options might fall between:

• $5,550 for a 3% down payment
• $37,000 for a 20% down payment

The Bishop Sheen Ecumenical Housing Foundation website offers closing cost assistance, as well as various home buyer education courses. But the site provides no further details. So call (585) 461-4263 for more information.

Where to find home buying help in NY

All the organizations we’ve listed above should provide advice freely to any first-time home buyer in the state of New York. In addition to our selection, the U.S. Department of Housing and Urban Development (HUD) provides a few lists of statewide, regional, and local resources:

Statewide and regional New York first-time home buyer programs:

• New York Down Payment Assistance
• State of NY Mortgage Agency (SONYMA)
• SONYMA Down Payment Assistance Loan (DPAL)
• SONYMA DPAL Plus
• HomeFirst Down Payment Assistance Program

New York first-time home buyer programs by city/town:

• Homsite’s Mortgage Assistance Program (MAP)
• Cortland Housing Assistance Council
• INHS Down Payment Assistance

What are today’s mortgage rates in NY?

You can see today’s live mortgage rates in New York here. Experiment with a mortgage calculator to see how down payment, interest rates, homeowners insurance, and property taxes will all affect your monthly mortgage payment.

When you’re ready to start the home buying process, make sure you get personalized rate quotes from at least three mortgage lenders. Don’t just look at advertised rates online. Apply for preapproval and compare the interest rates and fees you’re offered. Because that’s the only way to know you’re getting the best deal possible on your new home loan.

¹ Source: Redfin New York Housing Market report

² Source: Experian 2023 study of 2022 and 2021 data

³Based on a review of the state's available DPA grants at the time this was written

⁴ Source: The State of New York Mortgage Agency

⁵Source: SONYMA Income Limits and Purchase Price Limits

⁶Source: HomeFirst Down Payment Assistance Program Brochure

⁷Source: Neighborhood Housing Services of New York City, Inc