New York first-time buyer programs: SONYMA and HomeFirst

SONYMA: the state’s mortgage programs

SONYMA does not lend directly. Participating lenders originate its 30-year fixed-rate loans, and SONYMA sets the terms. Its main programs for a home purchase are:

• Achieving the Dream. SONYMA’s lowest-rate program. It finances up to 97% of the value, with no points and no prepayment penalty. The minimum cash from you is 1% of value (3% for co-ops and three- or four-family homes).
• Low Interest Rate Program. Also a 30-year fixed loan with no points. Down payment can be as low as 3%, and you must complete a homebuyer education course. Loans with less than 20% down need private mortgage insurance (see our guide to PMI).
• Conventional Plus and FHA Plus. These pair a 30-year fixed loan with SONYMA down payment help. They are open to first-time buyers and previous homeowners. Conventional Plus requires income below 80% of area median income, checked with Fannie Mae’s HomeReady eligibility tool (SONYMA).

You generally must be a first-time buyer as SONYMA defines it. SONYMA waives this for eligible military veterans and for homes in federally designated Target Areas. You must live in the home, and you cannot qualify if you plan to keep another residential investment or vacation property.

The Down Payment Assistance Loan (DPAL)

A DPAL can be added to any SONYMA mortgage. SONYMA’s terms:

• 0% interest and no monthly payments.
• Forgiven after 10 years.
• Maximum of 3% of the purchase price (up to $15,000) or $3,000, whichever is higher. Minimum $1,000.
• It cannot exceed your actual down payment and closing costs, and can pay a single-premium mortgage insurance charge.
• If you sell or refinance within 10 years, part may be due. The repayable amount drops by 1/120 each month you live there.
• First-time buyer mortgages with a DPAL carry an interest rate 0.40 percentage points higher than the same mortgage without one.

Example. On a $600,000 co-op or condo, 3% is $18,000, so the DPAL is capped at $15,000. On a $120,000 home, 3% is $3,600. Compare the two payments before you accept it: a 0.40-point rate increase on the whole loan can cost more than the forgiven amount saves if you keep the loan for decades. Current rates are on SONYMA’s rate page and change at any time, so ask a participating lender for a written quote.

SONYMA also lists “DPAL Plus 2026”, a larger loan of up to $30,000 for households at or below 60% of area median income, funded first come, first served until the money runs out. Ask a lender whether funds remain.

SONYMA limits for New York City

For reservations accepted from July 6, 2026 until further notice, SONYMA lists the same figures for the Bronx, Kings (Brooklyn), New York (Manhattan), Queens and Richmond (Staten Island) counties:

Target Area homes have higher price limits (for example $1,597,410 for a one-family home). SONYMA says limits are subject to change.

HomeFirst: New York City down payment assistance

HPD’s HomeFirst program provides up to $100,000 toward a down payment or closing costs on a one- to four-family home, condo or co-op in the five boroughs. HPD lists these rules:

• First-time buyer and owner-occupant.
• Your own money: at least 3% of the price from your own funds.
• Income: up to 120% of area median income (effective June 1, 2026): $142,560 for one person, $162,840 for two, $183,240 for three, $203,520 for four.
• Price cap: at or below 95% of HUD’s purchase price limits for existing homes. For a one-unit home that is $661,000 in the Bronx, Manhattan and Staten Island, $699,000 in Queens and $732,000 in Brooklyn.
• Course and counseling: a homebuyer education course from an HPD-approved counseling agency, and an application completed with that agency.
• Inspection: the home must pass a Housing Quality Standards inspection before purchase.
• Occupancy: 10 years for loans of $40,000 or less, 15 years for larger loans.

Older pages and brochures list different income limits, including 80% of area median income. HPD’s current page says 120%, so use that and confirm with a counseling agency before you plan around it.

Putting it together

Buyers often stack programs: a SONYMA first mortgage, a DPAL, and HomeFirst in the city. SONYMA allows other grants and subsidies with no limit on the Low Interest Rate Program, but each program has its own rules about the order and combined size. Ask a counselor to model the stack. Closing costs still apply; see closing costs in New York. For city-level prices and context, see New York City, and for the process see home buying steps. A New York real estate attorney can explain how the occupancy requirement affects a future sale.