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 the monthly mortgage, the expenses of buying can be intimidating. But don’t be discouraged: help is 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) program 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 borrowers’ monthly mortgage payments.

Note that DPALs can only be used with SONYMA mortgages.

Manhattan Homes Under $750K on StreetEasy Article continues below

South Harlem

157 West 123rd Street

$315,000

1 |

1

Upper West Side

127 West 96th Street

$649,000

1 |

1

Lincoln Square

116 West 72nd Street

$540,000

1 |

1

Upper West Side

59 West 90th Street

$625,000

1 |

1

South Harlem

258 West 117th Street

$450,000

2 |

1

South Harlem

258 West 117th Street

$300,000

1 |

1

Hamilton Heights

3603 Broadway

$175,829

1 |

1

Murray Hill

25 Tudor City Place

$655,000

1 |

2

Central Harlem

305 West 150th Street

$390,000

1 |

1

Lenox Hill

326 East 73rd Street

$435,000

1 |

1

East Harlem

209 East 120th Street

$395,000

1 |

1

Greenwich Village

77 Bleecker Street

$500,000

Studio |

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? 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 first-time home buyers of low income 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 $750K on StreetEasy Article continues below

Brooklyn Heights

130 Hicks Street

$382,000

Studio |

1

Kensington

495 East 7th Street

$439,000

1 |

1

Bensonhurst

2155 82nd Street

$255,000

Studio |

1

Coney Island

2823 West 37th Street

$649,000

3 |

1.5

Prospect Lefferts Gardens

77 Clarkson Avenue

$725,000

1 |

1

Bay Ridge

7259 Shore Road

$309,000

1 |

1

Bay Ridge

7501 Ridge Boulevard

$369,000

1 |

1

Homecrest

2675 Ocean Avenue

$329,999

2 |

1

Cobble Hill

439 Hicks Street

$515,000

1 |

1

Brighton Beach

150 West End Avenue

$219,000

Studio |

1

Sheepshead Bay

3901 Nostrand Avenue

$320,000

1 |

1

Sheepshead Bay

2645 Homecrest Avenue

$350,000

2 |

1

7. ENERGY STAR® Labeled Homes Program

For home buyers looking for an energy-efficient home, there’s a SONYMA program for your needs. ENERGY STAR® Labeled Homes can qualify for interest rates up to 0.6% lower than standard SONYMA loans, along with down payment assistance of $3,000 or 3% of the home purchase price (up to $15,000).

8. FHA 203(k) loans

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

To receive an FHA 203(k) loan, borrowers must enter into a rehabilitation agreement and follow HUD and lender requirements. Renovation work generally must begin within 30 days of closing. Depending on the type and scope of the project, completion timelines may vary, with many projects required to be finished within six to 12 months.

Queens Homes Under $750K on StreetEasy Article continues below

Far Rockaway

150 Beach 3rd Street

$700,000

3 |

1

Auburndale

201-06 Rocky Hill Road

$518,000

2 |

1

East Flushing

140-15 Holly Avenue

$479,000

3 |

2

Elmhurst

86-25 Dongan Avenue

$330,000

1 |

1

Oakland Gardens

73-03 Bell Boulevard

$275,000

1 |

1

Jackson Heights

84-12 35th Avenue

$450,000

1 |

1

Astoria

21-66 33 Road

$565,000

2 |

1

Kew Gardens Hills

78-06 Main Street

$449,980

2 |

1

Elmhurst

85-14 Broadway

$420,000

2 |

1

St. Albans

118-15 192nd Street

$579,000

3 |

1.5

Jackson Heights

88-10 34th Avenue

$465,000

2 |

1

Jackson Heights

32-20 89th Street

$389,000

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:

• US 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® 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 free online HomeView® homeownership education course to qualifying first-time buyers. Upon completion of the course, eligible first-time home buyers can receive up to 3% in closing cost assistance when purchasing a HomePath property.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.