First-time home buyer in NYC: programs, limits, steps

updated 2026-11-11

First-time buyers in NYC can combine HomeFirst (up to $100,000), SONYMA loans and 3%-down mortgages, but many co-op boards still want 20% down.#

Last updated: 2026-11-11. General information, not legal, tax or financial advice. Rates and rules change, so confirm the numbers for your deal with your real estate attorney and lender.#

The short answer#

Program	What you get	NYC limits that apply now
HPD HomeFirst#	A 0% forgivable loan of up to $100,000 toward the down payment or closing costs	Household income up to 120% of AMI ($142,560 for one person, $203,520 for four); price up to $661,000–$732,000 for a one-unit home, by borough
SONYMA Achieving the Dream#	A 30-year fixed state mortgage at SONYMA's lowest rates	Income up to $162,810 (1–2 people) or $189,950 (3+); price up to $1,306,970 for a single-family home, condo or co-op
SONYMA Low Interest Rate#	A 30-year fixed state mortgage	Income up to $203,520 (1–2 people) or $237,440 (3+); same price limits
SONYMA Down Payment Assistance Loan#	3% of the price (up to $15,000) or $3,000, whichever is higher, forgiven over 10 years	Only with a SONYMA mortgage
FHA#	3.5% minimum down with a credit score of 580 or more	Loan up to $1,249,125 for one unit in all five boroughs (2026)
Freddie Mac Home Possible, Fannie Mae HomeReady#	3% down on a conventional loan	Income up to 80% of AMI

A lender's minimum is not the building's minimum. Many co-op boards require 20% down or more regardless of the loan, so most of these programs fit condos, houses and the minority of co-ops that accept smaller down payments.#

Who counts as a first-time home buyer?#

The usual test is that you have not owned a home in the past three years. Each program writes its own version:#

HomeFirst: you "must not have owned a home in the past three years."#
SONYMA: you have not owned your primary residence in the last three years. The rule is waived for eligible military veterans and for buyers in a federally designated Target Area. If you own a vacation or investment home and plan to keep it, you do not qualify.#
FHA and Fannie Mae HomeReady do not require first-time status. HomeReady requires homeownership education if every borrower living in the home is a first-time buyer.#

HomeFirst down payment assistance: amount and income limits#

HomeFirst is run by the NYC Department of Housing Preservation and Development (HPD). The loan is the lesser of 20% of the price or $100,000, at 0% interest.#

Income limits are 120% of area median income, effective June 1, 2026:#

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

Purchase price limits for existing homes are 95% of HUD's limits, effective December 1, 2025 until HUD issues new ones. A co-op or condo apartment is a one-unit home. Homes in an HPD "Exception Area" may exceed these limits, and newly built or rehabilitated homes have separate limits linked from the HomeFirst NYC page:#

County	1 unit	2 units	3 units	4 units
Bronx, New York (Manhattan), Richmond (Staten Island)#	$661,000	$846,000	$1,025,000	$1,270,000
Kings (Brooklyn)#	$732,000	$936,000	$1,134,000	$1,404,000
Queens#	$699,000	$894,000	$1,083,000	$1,342,000

Other rules from HPD's term sheet (dated February 18, 2025):#

Eligible homes: one- to four-family houses, condos and co-ops in the five boroughs, for you to live in. The home must pass a housing quality inspection.#
Education: a homebuyer course from an HPD-approved counseling agency. The agency also certifies your income and files the application.#
Your own money: at least 3% of the price, from your own funds. No more than half of your contribution can be a gift.#
Assets: household savings, deposits, stocks and bonds may not exceed the income limit for your household size. Retirement and college accounts don't count.#
The first mortgage: fixed rate, 15 to 40 years, from a HomeFirst participating lender (not a mortgage broker), meeting FHA, Fannie Mae or Freddie Mac guidelines. Minimum credit score 620, or 580 with an FHA lender.#
Fee: $1,650, paid $250 at application and $1,400 at closing.#

How HomeFirst is forgiven#

Loan amount	You must live there	If you sell within that period
$40,000 or less#	10 years	You repay the lesser of the loan or your net proceeds; from the 6th anniversary the amount due falls 20% a year
More than $40,000, or any City-funded loan#	15 years	Same, but the amount due falls 10% a year from the 6th anniversary

If you stop living there as your principal residence, you repay the whole loan. If you refinance, HPD takes half of any proceeds above your original purchase price. You may not rent the apartment out.#

SONYMA programs for NYC buyers#

The State of New York Mortgage Agency (SONYMA) offers 30-year fixed-rate mortgages through participating lenders. Both main programs finance condos and co-ops. Rates change often; SONYMA posts them on its current rates page.#

Achieving the Dream: SONYMA's lowest rates, for lower-income buyers. Up to 97% financing (95% on co-ops), with a minimum cash contribution of 1% of the value (3% on co-ops).#
Low Interest Rate: down payment as low as 3%, higher income limits, and a required homebuyer education course.#
Conventional Plus and FHA Plus: a 30-year fixed loan plus SONYMA down payment and closing-cost help, open to previous owners too. Conventional Plus requires income below 80% of AMI.#

Co-op buildings must have at least 10 units. Condo buildings must have at least 10 units, more than half sold, and 70% or more of sold units owner-occupied.#

What are the SONYMA income limits in NYC?#

For reservations accepted from July 6, 2026, the limits are the same in all five boroughs and do not change in Target Areas. Price limits do:#

	Achieving the Dream	Low Interest Rate
Income, 1–2 people#	$162,810	$203,520
Income, 3 or more people#	$189,950	$237,440
Price, single-family, condo or co-op#	$1,306,970 ($1,597,410 in a Target Area)	same
Price, two-family#	$1,673,440 ($2,045,320 in a Target Area)	same

SONYMA down payment help#

The Down Payment Assistance Loan (DPAL) works with any SONYMA mortgage, including on co-ops. It is the higher of $3,000 or 3% of the price (capped at $15,000), at 0% with no monthly payments. It is forgiven over 10 years: the repayable amount falls by 1/120 for each month you live there. Two catches: it raises your mortgage rate by 0.40% (except on Graduate to Homeownership, Homes for Veterans and ENERGY STAR loans), and not every SONYMA lender offers it. DPAL Plus 2026 gives up to $30,000 to households at or below 60% of AMI, while its limited funding lasts.#

SONYMA loans are often funded with tax-exempt bonds, so a federal recapture tax can apply if you sell within nine years, make a profit, and your income has risen above an IRS threshold.#

FHA and 3%-down conventional loans#

FHA allows 3.5% down with a credit score of 580 or more. In 2026 the FHA limit in all five boroughs is $1,249,125 for one unit. A condo must be in an FHA-approved building, or get a single-unit approval (the building must be complete with at least five units). FHA's co-op program is separate, under Section 203(n); ask a lender whether it offers it before counting on FHA for a co-op.#

Freddie Mac Home Possible and Fannie Mae HomeReady allow 3% down on a conventional loan for incomes up to 80% of AMI. Home Possible lists condos and co-ops as eligible.#

The co-op catch#

Co-op boards set their own down payment and reserve rules, often stricter than any lender's. Many require 20% down, some 25–50%, plus cash left over after closing, and a 3% loan approval does not change that. Ask for the building's minimum down payment before you bid. The co-op vs condo guide explains why condos are usually easier for first-time buyers, and the board package guide covers what boards check.#

Other first time home buyer programs NYC buyers can use#

NYC Housing Connect: the City's affordable housing lottery portal. HPD lists some subsidized homeownership units and some HDFC co-op resales there.#
HDFC co-ops: limited-equity co-ops with income caps and resale limits, often priced well below market. See the HDFC co-op guide.#
HPD-approved counseling agencies: nonprofits in every borough, including Neighborhood Housing Services (which also services HomeFirst loans), run the courses and certify income. The list is on the HomeFirst page.#

Taxes: what first-time buyers do and don't get#

New York has no general first-time buyer exemption from the state transfer tax or the mansion tax. If you buy for $1 million or more, you pay the 1% mansion tax like any other buyer. On a condo you also pay the mortgage recording tax on the loan; co-op loans are exempt. The closing costs guide works through both.#

NYC down payment assistance: the order of operations#

Check your status and income against the three-year rule and the limits above.#
Take a homebuyer education course with an HPD-approved counseling agency. HomeFirst requires it, and the agency starts your application.#
Get pre-approved by a lender on the HomeFirst list, the SONYMA list, or both. SONYMA allows other grants and subsidies on top of its loans; ask the lender whether HomeFirst can be layered on yours.#
Set your price ceiling at the lowest of the program price limits and what you can afford.#
Shop with the building rules in mind: the co-op's down payment rule, FHA approval for a condo, SONYMA's 10-unit minimum.#
Sign, apply and close. HomeFirst requires an inspection before purchase, and the first mortgage must close within 120 days of HomeFirst's approval notice.#

The step-by-step buying guide covers the rest of the process from offer to keys.#

Eligibility at a glance#

	First-time buyer required	Income limit (NYC)	Price limit (NYC, one unit)	Co-ops	Minimum own cash
HomeFirst#	Yes, 3 years	120% AMI, $142,560–$268,680 by size (from 6/1/2026)	$661,000–$732,000 (from 12/1/2025)	Yes	3% of price
SONYMA Achieving the Dream#	Yes, 3 years; waived for veterans and Target Areas	$162,810 / $189,950	$1,306,970; $1,597,410 in Target Areas	Yes, up to 95% financing	1%; 3% for co-ops
SONYMA Low Interest Rate#	Same	$203,520 / $237,440	Same	Yes	1%; 3% for co-ops
FHA#	No	None	Loan up to $1,249,125	Only through Section 203(n)	3.5% (580+ score)
Home Possible / HomeReady#	No	80% AMI	Conforming loan limit	Yes (Home Possible)	3% down