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Is there down payment assistance where I’m buying?

See state and local programs that help first-time buyers with a down payment and closing costs where you’re buying.

Your numbers

Some programs add money for first-generation buyers.

Estimates only. Nothing you enter is saved.

Programs for New York 3 to look into Most require a program first mortgage, income limits and a homebuyer class

Programs

  • SONYMA Down Payment Assistance Loan (DPAL) Open · Forgivable loan
    The greater of $3,000 or 3% of the purchase price, up to $15,000. A 0% second loan with no monthly payments, available with any SONYMA mortgage. It can’t exceed your actual down payment and closing costs. The amount you might repay if you sell or refinance drops by 1/120 each month, so it’s fully forgiven after 10 years. SONYMA first mortgages with a DPAL carry a rate about 0.40% higher than those without. Who qualifies: Buyers using a SONYMA mortgage (Achieving the Dream or Low Interest Rate), which generally requires first-time buyer status, income and price limits, and a minimum cash contribution.
    Agency website →
    Checked 2026-09-30
  • SONYMA DPAL Plus Closed for now · Forgivable loan
    Up to $30,000 when offered. An enhanced SONYMA down payment loan for low-income buyers that brings the first mortgage down to 80% of the price, forgiven over 10 years. It has been offered in limited, targeted rounds; the most recent (East Buffalo) ran out of funds on January 30, 2025. Buyers can use the standard DPAL meanwhile. Who qualifies: Low-income buyers (typically up to 60% of area median income) using a SONYMA mortgage, in the areas where a round is offered.
    Agency website →
    Checked 2026-09-30
  • FHLBNY Homebuyer Dream Program Funding rounds · Grant
    Grant up to $30,000 (up to $60,000 when combined with HDP Wealth Builder). A grant toward down payment, closing costs and homebuyer counseling, offered through participating FHLBNY member banks and credit unions. The 2026 round opened February 9, 2026 and runs until November 27, 2026 or until funds run out. You must live in the home for 5 years or repay a prorated share. Who qualifies: First-time homebuyers; HDP is for households at or below 80% of area median income and HDP Plus for households above 80%; homeownership counseling; at least $1,000 of your own money; apply through a participating member lender.
    Agency website →
    Checked 2026-09-30

Assistance usually comes as a forgivable or deferred second loan rather than a gift, and it often has to be repaid if you sell or refinance early. Program lenders can tell you which you qualify for and whether they can be combined.

Local city and county programs change often; we list the main ones for the areas we cover.

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How down payment assistance works

State housing finance agencies, some cities and a few banks offer help with the down payment and closing costs, mainly for first-time buyers with moderate incomes. The money usually comes as a second loan with no monthly payment that is forgiven over time or repaid when you sell or refinance, and sometimes as a grant.

Common requirements

  • First-time buyer status, often defined as not having owned a home in the last three years.
  • Household income and purchase price limits, which vary by county.
  • A program first mortgage from a participating lender.
  • A homebuyer education course.
  • Living in the home as your main residence for a set number of years.

Programs in the areas we cover

In New Jersey, the state housing agency offers down payment assistance with an extra amount for first-generation buyers. In New York, the state mortgage agency offers a forgivable down payment loan with its mortgages. In California, the state housing agency offers a deferred second loan and, in some years, a larger shared-appreciation program by lottery. Some cities, including San Francisco, run their own programs. Amounts and availability change, so always confirm on the agency’s site.

An example

A first-time buyer in New York purchasing a $400,000 home with a state agency mortgage might qualify for a forgivable assistance loan of 3% of the price, $12,000, toward the down payment and closing costs.

Things to check before you rely on it

  • Whether the program rate on the first mortgage is higher than a regular loan, and what that costs over time.
  • How much you’d repay if you sell or refinance early.
  • Whether sellers in competitive markets view program financing differently, and how long approval takes.

How to apply

Most programs are reached through a participating lender rather than by applying to the agency directly. Start by asking a lender that offers the state agency’s mortgages whether you qualify, take the homebuyer education course early since it can take a few weeks to schedule, and gather the same documents you’d need for any pre-approval. Apply before you make offers, so your pre-approval letter reflects the assistance.

Questions buyers ask

Do I have to pay down payment assistance back?

Often only if you sell, refinance or move out before a set number of years. Some programs are repaid when you sell regardless, and some are grants.

Can I combine programs?

Sometimes. Program lenders know which can be combined.

Who counts as a first-time buyer?

Usually anyone who hasn’t owned a home in the last three years, though definitions vary by program.