How first-time NYC buyers can apply for up to $100,000 in down payment assistance

First-time buyers can apply for a forgivable loan for the purchase of a condo, co-op, or small multi-family
You must pay at least 1 percent of the purchase price and live there for 10 to 15 years, depending on the loan

By Brick Underground | June 11, 2026 - 10:30AM

For many New Yorkers, saving enough money for a down payment is the biggest obstacle to buying a home, but there's a New York City program designed to help first-time buyers get over that hurdle.

As of January 30, 2025, NYC's HomeFirst Down Payment Assistance Program expanded both its funding and eligibility, making forgivable loans of up to $100,000 available to a much larger pool of first-time buyers.

[Editor's note: A previous version of this article was published in February 2025. We are presenting it again with updated information for June 2026.]

The expansion came after the city secured an additional $41 million for the program, doubling its funding to $82 million. Officials estimated the increase could help roughly 1,000 additional households purchase a condo, co-op, or one- to four-family house in the five boroughs.

The timing is notable. Even as mortgage rates have fluctuated and inventory remains tight, prices across much of NYC continue to put ownership out of reach for many renters—especially those who can afford monthly mortgage payments but struggle to accumulate tens of thousands of dollars for a down payment and closing costs.

"The HomeFirst program has helped more individuals and families achieve the dream of home ownership, which we know is a pathway to personal financial stability," said Kim Moscaritolo, deputy press secretary for the Department of Housing Preservation and Development. "When people are able to purchase homes that they love, it creates stronger, more vibrant communities," she said.

A track record of helping buyers

Since the program's 2008 launch, 3,609 families have applied for assistance. According to HPD, 3,060 applicants were ultimately approved and received some level of aid.

The average assistance amount has been approximately $80,000, though awards ranged from $22,000 to the program maximum of $100,000.

Those figures suggest that while HomeFirst serves a relatively small share of total buyers, it has become an important tool for first-time buyers who might otherwise remain renters.

Who qualifies now

The biggest change may be who is eligible to apply.

Previously, HomeFirst was limited to households earning up to 80 percent of area median income (AMI). The new rules raise that threshold to 120 percent of AMI, opening the program to many middle-income New Yorkers who previously earned too much to qualify but still struggled to purchase a home.

For a single-person household, that means the income cap increased from roughly $87,100 to about $136,080 annually.

Applicants must also:

Be first-time homebuyers, meaning they have not owned a home during the previous three years
Contribute at least 1 percent of the purchase price from their own funds
Complete a homebuyer education course through an HPD-approved agency (the certificate is valid for up to one year)
Obtain mortgage pre-approval from a participating lender (ask the above agency for a referral)
Purchase a condo, co-op and one- to four-family home within NYC

HPD also recommends buyers maintain sufficient savings to cover two to six months of principal, interest, taxes, insurance, and mortgage payments on your new property. (Plus, you’ll have to cover an $850 application processing fee.)

The catch: You have to stay

Unlike a grant, HomeFirst assistance is structured as a forgivable loan. Buyers don't make monthly payments, but they must remain in the home as their primary residence for a set period, depending on the loam amount.

For loans of $40,000 or less, the forgivable period is 10 years. For loans exceeding $40,000—which now includes many recipients—the requirement extends to 15 years.

If you move out or sell before that period ends, and some or all of the assistance may need to be repaid.

—This article was updated for June 2026 by Evelyn Battaglia.

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