First-Time Home Buyer Programs in New York

State of New York Mortgage Agency (SONYMA) Programs:

Achieving the Dream:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) with low to moderate income.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with low interest rates; can be paired with down payment assistance.
Requirements:

• Income must not exceed county-specific limits (e.g., $114,240 for a 1-2 person household in Erie County, $171,360 in NYC as of 2025).
• Minimum credit score of 620 (varies by loan type).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required.
• Purchase price limit of $510,400 (non-targeted areas) or $623,600 (targeted areas).

Down Payment Assistance Loan (DPAL):

Benefits: Offers up to $30,000 or 20% of the purchase price (whichever is less) as a 0% interest deferred loan (repayable upon sale or refinance); available with SONYMA mortgages.
Eligibility: Must use a SONYMA first mortgage; income and purchase price limits apply (same as Achieving the Dream).

Neighborhood Revitalization Program:

Description: Provides a 30-year fixed-rate mortgage with up to $20,000 in down payment assistance (0% interest, forgivable after 10 years) for first-time buyers in designated revitalization areas.
Requirements: Income capped at 80% AMI (e.g., $82,600 in Monroe County for a family of four); must pair with a SONYMA mortgage; limited to specific zip codes.

Local Programs:

New York City

HomeFirst Down Payment Assistance: Offers up to $100,000 as a forgivable loan (forgiven after 10-15 years based on amount) for down payment and closing costs; income must be at or below 80% AMI (e.g., $103,280 for a family of four).

Buffalo

Buffalo First-Time Homebuyer Program: Provides up to $15,000 as a deferred loan (0% interest, due upon sale) for down payment and closing costs; income capped at 80% AMI; targets city residents.

Rochester

Rochester Homebuyer Grant: Offers up to $10,000 as a forgivable loan (forgiven after 5 years) for down payment and closing costs; income must be below 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 20% of annual mortgage interest (max $2,000 yearly) for first-time buyers; fee applies; combinable with SONYMA loans.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural New York areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.