Five boroughs · figures checked October 2026

Your first home in New York City

What the city, the state and the big banks will put toward your purchase, who qualifies, how long it takes, and how much cash you need on hand. Plus the part nobody advertises: how a small down payment looks to a seller.

The short version

You count as a first-time buyer if you have not owned a primary residence in the last three years.
The biggest money is public. The city's HomeFirst program lends up to $100,000 that is forgiven if you stay. The state's SONYMA loans go as low as 3% down with up to $15,000 in help.
Bank grants are smaller and depend on the address. Most run $2,500 to $10,000 and are tied to the census tract of the home, your income, or both.
Almost every program requires a homebuyer education course. Take it first. It is the cheapest head start you can buy.
Assistance narrows what you can buy. Price caps, income caps and co-op board rules shrink the list of homes. Most co-ops still want 20% down no matter what your lender allows.

Chapter one

How much cash you need

Three piles of money: the down payment, closing costs, and reserves left in your account afterward. Change the numbers below to see your own.

Purchase price ($) Property type Borough Down payment (%)

Down payment

Closing costs (estimate)

Cash to close

Loan amount

Monthly payment

Interest rate (%) Loan term

Maintenance or common charges ($/mo) Property taxes ($/mo) Other: parking, storage, insurance ($/mo)

Principal and interest

Maintenance or common charges

Property taxes

Other monthly costs

Monthly housing cost

Income for a 28% housing ratio

Interest paid over the loan

The 6.5% rate, charges and taxes are examples. Enter your lender's quote and the listing's figures. Co-op maintenance usually already includes the building's property taxes, so enter 0 for taxes unless the listing shows them separately. Add parking, a storage unit, homeowner's insurance and any assessment under Other. Mortgage insurance is not included.

Estimate only. Closing costs use 1 to 2% of price for co-ops and 2 to 4% for condos and houses, plus the 1% mansion tax at $1 million and up. Your attorney and lender will give exact figures.

What sits inside closing costs

Cost	Condo or house	Co-op
Mortgage recording tax	1.8% of the loan under $500,000; 1.925% at $500,000 and above	None. A co-op loan is not a recorded mortgage.
Title insurance	Yes	No (a lien search instead)
Mansion tax	1% of the price at $1,000,000, rising in tiers above $2 million. At $999,999 it is zero.
Attorney, bank and building fees	Both. Co-ops add application and move-in fees; new construction can run 5% or more in total.

Cash that never appears on the closing statement

The contract deposit. NYC sellers usually expect 10% of the price when you sign the contract. If you are putting down less than 10%, your attorney has to negotiate a smaller deposit, and the seller has to agree.
Reserves. HPD recommends keeping two to six months of housing payments in savings. Co-op boards commonly want one to two years of mortgage plus maintenance left over after closing, and a debt-to-income ratio near 25 to 30%.
Mortgage insurance. Under 20% down, most loans add a monthly PMI charge. A few bank programs below waive it.

Chapter two

Government programs

HomeFirst Down Payment Assistance (NYC HPD)

Up to $100,000 · forgivable loan · past awards have averaged about $80,000

What it is: A no-payment loan toward your down payment or closing costs. It is forgiven if you live in the home for 10 years (loans of $40,000 or less) or 15 years (larger loans, and all city-funded loans). Leave early and you may repay some or all of it.
Income limit: 120% of area median income. From June 1, 2026: $142,560 for one person, $162,840 for two, $183,240 for three, $203,520 for four.
Price limit: Existing one-unit homes, condos and co-ops: $732,000 in Brooklyn, $699,000 in Queens, $661,000 in Manhattan, the Bronx and Staten Island. Higher for two to four units.
Your own money: At least 3% of the price from your own funds, plus an $850 processing fee.
Also required: A course with an HPD-approved counseling agency (the certificate lasts up to a year), a mortgage from a participating lender, and a passed housing quality inspection before purchase.
How it runs: Course, then certificate, then pre-approval, then a signed contract. Only after the contract does the servicer verify you and the property and reserve funds for closing.

SONYMA mortgages (New York State)

3% down on condos and houses · 5% on co-ops · rates set by the state

What it is: Fixed-rate 30-year mortgages from the State of New York Mortgage Agency, issued through participating lenders. The two main products are Low Interest Rate and Achieving the Dream. The posted rate is the rate; it does not move with your credit score.
Income limit: In NYC, $186,360 for a one or two person household and $217,420 for three or more. Achieving the Dream is lower: $155,520 and $181,440.
Price limit: $1,255,920 for a one-family home in NYC, higher for multi-family and in target areas.
Your own money: At least 1% of the value from your own cash, or 3% for co-ops and three to four family homes.
Building rules: Co-op and condo buildings need at least 10 units and outside professional management. Apartments must be 500 square feet or larger, with exceptions. Owner-occupied only: no renting it out later.
Timing: Two to three months to close with a lender who does these often. Mortgage brokers cannot place SONYMA loans, so go to a participating lender directly.

SONYMA Down Payment Assistance Loan (DPAL)

3% of price up to $15,000, or $3,000 if that is higher · 0% interest · forgiven after 10 years

What it is: A second loan with no monthly payment, available only with a SONYMA mortgage. It can cover down payment, closing costs or mortgage insurance.
The trade: Your mortgage rate is 0.40% higher with a DPAL attached. Sell or refinance inside 10 years and you repay a share that shrinks by 1/120 each month.
DPAL Plus 2026: Up to $30,000 for households at or below 60% of area median income. First come, first served until the money runs out.

Homebuyer Dream Program (Federal Home Loan Bank of New York)

Grants up to $30,000 · up to $60,000 for some first-generation buyers

What it is: A true grant for down payment and closing costs, delivered through member banks and credit unions rather than applied for directly. Many members set their own lower cap.
Three versions: HDP for households up to 80% of area median income. HDP Plus for incomes above that. HDP Wealth Builder for first-generation buyers, which can be layered on either one.
Timing: Annual rounds. The 2026 round opened February 9 and closes November 27, 2026, or sooner if funds run out. Expect the next round early in 2027, and line up a participating lender before it opens.
Catch: Education course required. Stay five years or repay part of the grant.

FHA loans, briefly

FHA allows 3.5% down with no income limit, but it does not finance co-ops, and a condo building must be FHA-approved first. Very few NYC condo buildings are. In practice FHA is a tool for one to four family houses.

Chapter three

What each bank offers

All five have a 3%-down mortgage for qualifying buyers. The grants differ. Every one of them depends on the property's address, your income, or both, so ask the loan officer to check the exact address before you count on the money.

Bank	Low-down mortgage	Money toward your purchase	Who qualifies
Chase	DreaMaker: 3% down, reduced mortgage insurance	Homebuyer Grant of $2,500 to $5,000, up to $7,500 in select census tracts. $500 more on DreaMaker for completing a course.	Grant depends on the property's census tract. DreaMaker has income limits, lifted where the larger grants apply. Primary residence only.
Bank of America	Affordable Loan Solution: 3% down	Down Payment Grant of 3% of the price up to $10,000, plus America's Home Grant of up to $7,500 for closing costs or a rate buydown.	Select markets, with income and loan-amount limits. The down payment grant may count as taxable income. The $7,500 cannot go toward the down payment.
Citi	HomeRun: 3% down, no mortgage insurance, co-ops allowed	Lender Paid Assistance of up to $7,500, applied to closing costs first, then to the rate.	Eligible Citi markets. Debt-to-income of 43% or less. Loan up to $832,750, or $1,249,125 in high-cost areas. Course required. Cannot be combined with other Citi offers.
TD Bank	Home Access and Right Step: 3% down, no borrower-paid mortgage insurance	$10,000 lender credit listed with Home Access (purchase only, at most $2,000 back in cash).	Minimum credit score 620. Home Access is limited to participating markets. Right Step needs a low-to-moderate income or a home in a low-to-moderate income tract.
Citizens	Destination Home: 3% down, no mortgage insurance, co-ops allowed	Closing cost grant reported at $3,000 to $10,000 for first-time buyers.	Homes in Citizens' designated assessment areas, with income and location requirements. Course required for first-time buyers. Seller credits capped at 3%.

Check before you rely on it. Banks change or end these programs without notice, and the amounts above are maximums. The TD and Citizens figures in particular should be confirmed with a loan officer for a specific NYC address.

Chapter four

Combining programs

HomeFirst plus a SONYMA mortgage is the classic pairing, when your lender is approved for both.
A bank grant plus public assistance is often allowed. Bank of America, for one, says it works with outside down payment programs. Ask each lender which combinations it will close.
Order matters. SONYMA requires DPAL Plus to be applied after any other grant or subsidy, and it will not let its DPAL sit behind another mortgage.
The tightest rule wins. Stack two programs and you must meet both income limits, both price limits and both residency periods. HomeFirst's price cap is usually the one that decides.
You still need your own cash. HomeFirst wants 3% from you. SONYMA wants 1%, or 3% on a co-op. No program gets you to zero.

Chapter five

A small down payment and the seller

Sellers do not simply take the highest number. They weigh price against the odds the deal closes. In the first five months of 2025, 60% of Manhattan co-op and condo sales closed with no mortgage at all, so a financed offer is often up against cash. Here is what a low-down offer signals, and what to do about it.

What the seller worries about	Why	How to answer it
The appraisal	If the bank values the home below your price, a buyer at the minimum down payment has no spare cash to cover the gap. The deal gets renegotiated or dies.	Bid on homes priced in line with recent sales. If you can, show some cash held back for a shortfall.
The financing contingency	It lets you walk away if the loan falls through. With several bidders, sellers sometimes refuse it.	Keep the contingency, but get fully underwritten pre-approval first and offer a shorter contingency period.
Time	Assistance programs add reviewers. SONYMA takes two to three months; HomeFirst reserves funds only after a signed contract.	Finish the course and collect your certificate before you bid. Use a lender who closes these loans often, and say so in the offer.
The deposit	A 10% deposit at contract is the norm. A buyer putting 3% down cannot post it.	Have your attorney propose the largest deposit you can manage, and raise it early so it is not a surprise.
The board	Most co-ops require 20% down and their own income and savings tests, whatever your lender approves.	Focus on condos, houses, and the minority of co-ops that allow 10% or less. Ask the building's rule before you tour.

Where a low-down offer does well

Listings that have sat for a while, or just had a price cut.
Sellers who need a flexible closing date more than a fast one.
Homes under the program price caps, where other bidders are often using the same financing.
A loan with no mortgage insurance, such as Citi HomeRun or TD Right Step, where your monthly numbers read stronger on paper.

The trade to weigh. Stretching to 10% or 20% down makes your offer stronger and your monthly payment lower. It can also disqualify you from nothing, since the programs set minimums, not maximums. If you have the cash but would rather keep it, the question is whether winning the home is worth using it.

Chapter six

Timeline

Three to six months before you shop: get eligiblePull your credit. Take the homebuyer education course. Gather two years of tax returns, recent pay stubs and bank statements. Stop moving money between accounts.
Pick a lender that offers your programsNot every lender does HomeFirst, SONYMA or the Dream Program. Check the participating lists, then get pre-approved, not just pre-qualified.
Search and make an offerFilter by the price cap and by building rules. Your offer names the loan type, down payment and contingencies.
Accepted offer to signed contract: about one to two weeksYour attorney reviews the building and negotiates the contract. You pay the deposit at signing.
Loan and assistance approvals: about 30 to 60 daysAppraisal, underwriting, and the program's own review. The loan commitment letter usually arrives about 30 days after contract.
Co-op only: board package and interviewAdds a month or more. Co-op purchases often run four to six months from accepted offer to closing.
ClosingCondos and houses with assistance: plan on two to three months from contract. Then the residency clock starts on any forgivable loan.

Found a place? Check the flood zone

Before you make an offer, look the address up on the official FEMA and city flood maps. Open the flood check.