Homeownership might be the American dream, but buying a home in New York City often seems like a dream out of reach. From saving up for a down payment to covering the closing costs to paying that monthly mortgage, the expenses of buying can be intimidating. But don’t be discouraged: there is help available. Here’s an overview of 10 mortgage assistance programs for first-time home buyers in NYC, plus other programs for low- and moderate-income buyers who may have owned a home before.

About the State of New York Mortgage Agency (SONYMA)

The State of New York Mortgage Agency (SONYMA) offers several mortgage assistance programs for first-time NYC home buyers. SONYMA has been partnering with approved mortgage lenders since 1970 to provide 30-year, fixed-rate mortgages. Even better? They have special offerings like low down payment requirements, down payment assistance, and no prepayment penalties.

SONYMA considers first-time buyers to be anyone who hasn’t owned a home in three years or more. So if that’s you — or you’re an active military member or veteran — read on.

1. SONYMA Low Interest Rate Program

SONYMA’s Low Interest Rate Program is the standard program for low- and moderate-income first-time buyers. It offers qualified buyers mortgages at competitive interest rates. The program also has a lower down payment requirement: just 3% of the total price. Eligible properties include one- to four-family homes, condos, and co-ops.

This program can also be combined with any of the others listed below.

2. SONYMA Down Payment Assistance Loan

The Down Payment Assistance Loan (DPAL) can give SONYMA borrowers a lift when it comes to funding their down payment and closing costs. The minimum loan amount is $1,000, with a maximum of up to $15,000.

DPALs have a 0% interest rate, no monthly payments, and will be forgiven after 10 years, provided the owner keeps the SONYMA financing in place and continues to occupy the home. The loan can also be used to pay all or a portion of a one-time mortgage insurance premium, which can significantly reduce the buyer’s monthly mortgage payment.

Note that DPALs can only be used with SONYMA mortgages.

Manhattan Homes Under $800K on StreetEasy Article continues below

Hell’s Kitchen

340 West 57th Street

$560,000

Studio |

1

Gramercy Park

201 East 21st Street

$700,000

1 |

1

Hamilton Heights

345 West 145th Street

$410,000

1 |

1

Yorkville

400 East 85th Street

$699,000

1 |

1

Upper East Side

150 East 83rd Street

$425,000

1 |

1

Washington Heights

834 Riverside Drive

$435,000

1 |

1

Lenox Hill

1420 York Avenue

$445,000

Studio |

1

Manhattanville

575 Riverside Drive

$460,000

1 |

1

Upper West Side

269 West 72nd Street

$430,000

Studio |

1

Turtle Bay

345 East 52nd Street

$725,000

1 |

1

Lenox Hill

166 East 61st Street

$690,000

1 |

1

Sutton Place

36 Sutton Place South

$575,000

1 |

1

3. SONYMA Conventional Plus Program

SONYMA’s Conventional Plus Program gives you the best of both worlds: a 30-year fixed-rate mortgage in addition to down payment assistance. Plus, you don’t need to be a first-time buyer to qualify. Conventional Plus can also be used to refinance an existing mortgage on a primary home.

4. SONYMA RemodelNY Program

Brave enough to be buying a home for the first time and renovating it? Check out the RemodelNY Program. For those who qualify, SONYMA will finance both the purchase and the renovation of your new home with one low, fixed-rate mortgage.

5. SONYMA Achieving the Dream Mortgage Program

Qualified low-income, first-time home buyers can pursue the Achieving the Dream Program, SONYMA’s lowest interest rate program. The details are similar to the Low Interest Rate Program — 3% down payment requirement, 30-year fixed rate mortgage — but the interest rate is even more competitive.

6. SONYMA Neighborhood Revitalization Program

If you’re looking for a home in a neighborhood that has many vacant properties, you might be eligible for the SONYMA Neighborhood Revitalization Program. The program provides benefits such as $20,000 for home renovations and the ability to seek additional funds from other lenders, and can be combined with other SONYMA programs.

Brooklyn Homes Under $800K on StreetEasy Article continues below

Homecrest

2140 Knapp Street

$239,000

Studio |

2.5

Marine Park

4209 Quentin Road

$679,000

2 |

1

Borough Park

1238 63rd Street

$599,000

1 |

1

Borough Park

1238 63rd Street

$530,000

1 |

1

Old Mill Basin

2465 Flatbush Avenue

$165,000

2 |

1

Fort Hamilton

351 Marine Avenue

$285,000

1 |

1

East New York

572 Jerome Street

$675,000

4 |

3

Bay Ridge

6735 Ridge Boulevard

$485,000

2 |

1

East New York

178 Crystal Street

$749,000

5 |

2

Bedford-Stuyvesant

417 Nostrand Avenue

$425,000

Studio |

1

East Flatbush

417 East 51st Street

$650,000

3 |

1.5

Homecrest

3178 Nostrand Avenue

$309,000

2 |

2

7. ENERGY STAR® Certified Homes

For home buyers looking for an energy-efficient home, there’s a SONYMA program for your needs. ENERGY STAR®-certified homes can qualify for interest rates .375% lower than standard SONYMA loans, along with down payment assistance of up to $15,000.

8. FHA 203k Loans

Whether the home you’re considering requires minor cosmetic upgrades or major structural repairs, an FHA 203k loan can help. These loans will add the cost of renovations to the original loan amount at the time of purchase. FHA 203K loans can also be used by current homeowners looking to refinance as a way to pay for necessary renovations.

To receive an FHA 203k loan, the borrower must sign a rehabilitation loan agreement stating that the work will begin within 30 days of the execution of the agreement and be completed within six months.

Queens Homes Under $800K on StreetEasy Article continues below

Astoria

31-19 29th Street

$660,000

1 |

1

Astoria

31-19 29th Street

$570,000

Studio |

1

Forest Hills

68-20 Burns Street

$595,000

3 |

1

Astoria

25-40 Shore Boulevard

$725,000

1 |

1

Briarwood

139-09 84 Drive

$158,000

Studio |

1

Clearview

157-60 17 Road

$348,000

2 |

1

Kew Gardens

83-64 Talbot Street

$225,000

1 |

1

St. Albans

115-16 198th Street

$559,000

3 |

2

Glendale

90-50 Union Turnpike

$439,999

2 |

1

Sunnyside

39-30 52nd Street

$249,000

Studio |

1

Clearview

157-57 17th Avenue

$425,000

2 |

1

Briarwood

139-21 85 Drive

$315,000

2 |

1

9. SONYMA Homes for Veterans Program

If you or your spouse is an active military member or retired veteran, you could qualify for lower interest rates through SONYMA’s Homes for Veterans Program. SONYMA waives the first-time home buyer requirement for any veteran and their spouse or co-borrower who:

• Served in active military, naval, or air service; and
• Has been discharged or released from their military duties under conditions other than dishonorable

Any first-time home buyer may take advantage of the program’s benefits if they are:

• U.S. military personnel stationed in New York state, regardless of discharge status; or
• An active or honorably discharged National Guardsman or Reservist 

10. Fannie Mae’s HomePath Ready Buyer Program

Just as new motorists receive insurance discounts for taking driver’s education courses, home buyers can benefit from taking a class as well. Fannie Mae offers its HomePath Ready Buyer Program to qualifying first-time home buyers. Upon completion of an online home buying education course, buyers can receive up to 3% assistance toward closing costs on a HomePath property.

Not a First-Time Home Buyer?

You may still qualify for some of SONYMA’s programs. For instance, those considering buying a home in a Target Area don’t need to be first-time buyers. Use the lookup tool to find out if a property is located in a Target Area.

^{Disclaimer: The content on this site is not intended to provide legal, financial, or real estate advice. It is for information purposes only, and any links provided are for the users’ convenience. Please seek the services of a legal, accounting, or real estate professional before any real estate transaction.}