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First-Time Homebuyer Guide for New York City

Buying a first home in New York City is possible at ordinary incomes because of a layer of programs most buyers never hear about: up to $100,000 in city down payment assistance, state loans, income-restricted HDFC co-ops, and homeownership lotteries. Nearly all of them start at the same place, a HUD-approved homebuyer education course. NYC Housing Partnership has counseled New York homebuyers since 2006, and half of recent program completers went on to purchase a home.

The Path, Start to Close

1. Take the homebuyer education course

A HUD-approved course covers budgeting, credit, mortgage types, inspections, and closing costs. It is not just education: the certificate is a hard requirement for HomeFirst and most assistance programs, and lenders cannot close those loans without it in the file.

2. Meet one-on-one with a housing counselor

A counselor reviews your income, savings, and credit, then maps which programs you qualify for and what price range is realistic. This is free at NYC Housing Partnership.

3. Line up your assistance and get pre-approved

Stack what you qualify for: HomeFirst from the city, SONYMA from the state, and low down payment mortgages like FHA. Pre-approval with a participating lender tells sellers you are real.

4. Shop across every affordable channel

Beyond regular listings, watch NYC Housing Connect for Open Door homeownership lotteries and consider HDFC co-ops, which are often the lowest-priced homes in the city.

5. Contract, inspection, and closing

Your attorney (required in New York) reviews the contract, programs like HomeFirst require a property inspection before closing, and your counselor stays involved through the closing table.

Down Payment Help You May Qualify For

HomeFirst (NYC HPD): up to $100,000

A 0% interest, forgivable loan covering up to 20% of the purchase price for first-time buyers earning up to 120% AMI, on a 1-4 family home, condo, or co-op in the five boroughs. Forgiven after 10 to 15 years of living in the home. See the full HomeFirst guide.

SONYMA DPAL: up to $15,000 statewide

New York State's down payment assistance loan, 0% interest with no monthly payments, forgiven after 10 years, paired with a SONYMA first mortgage. The enhanced DPAL PLUS offers up to $30,000 for households at or below 60% AMI while funds last.

FHA financing: 3.5% down

Federally insured mortgages allow 3.5% down with a credit score of 580 or higher, with no income limits. Often the bridge for buyers still building credit.

Affordable Ways to Own in NYC

HDFC co-ops

Roughly 1,200 income-restricted cooperative buildings across the city, often priced far below market. Income limits, commonly 120% or 165% AMI, apply only when you buy. The trade-off is capped resale prices and high flip taxes: excellent for stability, limited for investment. Review the building's financials and regulatory agreement before signing.

Open Door homeownership lotteries

HPD's Open Door program finances brand-new co-ops and condos sold by lottery on NYC Housing Connect to first-time buyers at moderate and middle incomes. Sellers may keep up to 2% appreciation per year of occupancy, keeping the home affordable for the next family. Our housing lottery guide explains how lottery selection works.

Partnership-marketed homes

NYC Housing Partnership markets affordable homeownership buildings directly. Current opportunities appear on our vacancies page with income requirements for each property.

Budgeting Beyond the Down Payment

Closing costs in New York City typically run 3 to 6% of the purchase price, driven by the mortgage recording tax, title insurance, and attorney fees. Two useful facts for entry-level buyers: co-op purchases avoid both the mortgage recording tax and title insurance, and the state's mansion tax only begins at purchases of $1 million or more. Your counselor will build a complete cost worksheet for your target price range so nothing surprises you at the closing table.

Why Counseling Is the Unlock

Every dollar of city down payment assistance flows through HPD-approved counseling agencies: HomeFirst applications are only accepted through them, never directly. NYC Housing Partnership is a HUD-approved housing counseling agency and HPD-approved HomeFirst agency, counseling New Yorkers since 2006. Completing our program produces the certificate that programs require, and our counselors stay with you from first budget to closing.

Ready to Start?

Pathways to Homeownership is NYC Housing Partnership's program for first-time buyers: education, one-on-one counseling, and connections to every assistance program on this page.

Explore Pathways to Homeownership

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Frequently Asked Questions

How much down payment assistance can I get in NYC?
The city's HomeFirst program provides up to $100,000 for eligible first-time buyers earning up to 120% of Area Median Income. New York State's SONYMA programs add up to $15,000 statewide, with an enhanced DPAL PLUS offering up to $30,000 for lower-income buyers. Assistance is forgivable if you stay in the home for the required period.
What counts as a first-time homebuyer?
For most programs, including HomeFirst, a first-time buyer is anyone who has not owned a home in the past three years. You do not need to have never owned property.
Why do assistance programs require a homebuyer course?
Down payment assistance programs and many first-time buyer mortgages make a HUD-approved homebuyer education certificate a hard closing condition, because education measurably reduces default risk. The course covers budgeting, credit, mortgage types, inspections, and closing, and the certificate from an approved agency like NYC Housing Partnership is what unlocks programs like HomeFirst.
What is an HDFC co-op?
HDFC co-ops are income-restricted cooperative buildings created under New York State law, often priced well below market. Income limits, commonly 120% or 165% of AMI, apply only at purchase. In exchange for the low price, resale prices are capped and flip taxes are high, so they offer housing stability more than investment upside.
Can I buy an affordable home through a lottery?
Yes. HPD's Open Door program finances new construction co-ops and condos sold by lottery through NYC Housing Connect to first-time buyers at moderate and middle incomes. Resale appreciation is limited to about 2% per year of occupancy to keep homes affordable for the next buyer.
How much should I budget for closing costs in NYC?
Plan on roughly 3 to 6% of the purchase price on top of your down payment, covering the mortgage recording tax, title insurance, attorney fees, and lender charges. Co-op purchases avoid the mortgage recording tax and title insurance, which meaningfully lowers entry costs.
What credit score do I need to buy in NYC?
It depends on the financing. HomeFirst requires 620, or 580 with an FHA-approved lender. FHA loans themselves allow 3.5% down with a 580 score. A housing counselor can help you build a plan if your score is not there yet.
Is the NYC Housing Partnership course free?
NYC Housing Partnership provides HUD-certified homebuyer education and counseling to New Yorkers, and completing it earns the certificate that HomeFirst and other programs require. Contact us through the Pathways to Homeownership page for current course schedules and details.