HomeFirst Down Payment Assistance: How to Apply
The HomeFirst Down Payment Assistance Program gives eligible first-time homebuyers up to $100,000 toward the down payment or closing costs on a home in New York City. It is a 0% interest, forgivable loan from NYC HPD, and the required first step is completing homebuyer education at an HPD-approved counseling agency. NYC Housing Partnership is one of those agencies: our certificate is what unlocks the program.
How HomeFirst Works
HomeFirst provides the lesser of 20% of your purchase price or $100,000 as a second mortgage with no interest and no monthly payments. If you live in the home as your primary residence for the full occupancy period, the loan is forgiven entirely: 10 years for loans of $40,000 or less, 15 years for larger loans and all City Capital funded loans.
If you sell or stop living in the home before the period ends, you repay the lesser of your net sale proceeds or the loan balance, and the amount owed starts declining each year beginning on the loan's sixth anniversary. Refinancing for profit during the period requires sharing half of the refinancing gains with HPD.
2026 Eligibility Requirements
- First-time buyer: no home ownership in the past three years.
- Income at or below 120% AMI for your household size (table below).
- Homebuyer education certificate from an HPD-approved counseling agency, before anything else.
- Your own contribution: at least 3% of the purchase price from your own funds; no more than half of it may be gifted.
- Property: a 1-4 family home, condo, or co-op in the five boroughs within HUD purchase price limits, kept as your primary residence for the full occupancy period.
- Assets: combined household assets, excluding retirement and college savings, may not exceed the income limit for your household size.
- Mortgage: fixed-rate, 15 to 40 year term from an HPD-approved participating lender, with a minimum 620 credit score (580 with an FHA-approved lender) and a maximum housing cost of 50% of income.
HomeFirst Income Limits (Effective June 2026)
| Household Size | Maximum Income (120% AMI) |
|---|---|
| 1 Person | $142,560 |
| 2 Person | $162,840 |
| 3 Person | $183,240 |
| 4 Person | $203,520 |
| 5 Person | $219,840 |
| 6 Person | $236,160 |
Source: NYC HPD HomeFirst term sheet, income limits effective June 1, 2026. HUD updates the limits annually.
The Application, Step by Step
1. Complete homebuyer education
Enroll with an HPD-approved counseling agency such as NYC Housing Partnership. Completing the course earns your Homebuyer Education Certificate, and HPD then issues the Completion Certificate that the rest of the process depends on.
2. Get pre-approved by a participating lender
HomeFirst requires a fixed-rate mortgage from an HPD-approved participating lender; mortgage brokers are not permitted. Your counseling agency can refer you.
3. Find an eligible home and sign a contract
The home must be a 1-4 family, condo, or co-op in the five boroughs within HUD purchase price limits for the borough, and it must pass an HPD HomeFirst inspection no later than 90 days before closing.
4. Submit your application through your counselor
Your housing counselor assembles and submits the complete application to HPD's loan servicer. The $250 portion of the processing fee is due at submission.
5. Receive loan approval and close
The servicer issues a Notice of Loan Approval valid for 120 days, which you sign and return within 10 days. At closing you sign the HomeFirst loan documents and pay the remaining $1,250 of the processing fee.
Start With the Required Course
NYC Housing Partnership is a HUD-approved counseling agency and HPD-approved HomeFirst agency. Our homebuyer education program is the first step of every HomeFirst application.
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Frequently Asked Questions
- How much does HomeFirst give you?
- Up to $100,000 toward your down payment or closing costs, capped at the lesser of 20% of the purchase price or $100,000. It is a 0% interest, forgivable loan, not a grant you repay monthly.
- Do I have to pay HomeFirst back?
- Not if you live in the home as your primary residence for the full occupancy period: 10 years for loans of $40,000 or less, 15 years for larger or City-funded loans. Selling, refinancing for profit, or moving out early triggers repayment on a declining schedule that starts shrinking in year 6.
- Who counts as a first-time homebuyer for HomeFirst?
- Anyone who has not owned a home in the past three years. You must also complete a homebuyer education course at an HPD-approved counseling agency, buy in the five boroughs, and live in the home as your primary residence.
- What is the HomeFirst income limit in 2026?
- Household income up to 120% of Area Median Income. Effective June 2026 that is $142,560 for a single person, $162,840 for a couple, and $203,520 for a family of four, with limits set by HUD and adjusted annually.
- What can I buy with HomeFirst?
- A 1-4 family home, condominium, or cooperative anywhere in the five boroughs, as long as it will be your primary residence and the price falls within HUD purchase price limits for the borough. In a 2-4 family home you may rent out the other units, just not your own.
- How much of my own money do I need?
- At least 3% of the purchase price must come from your own funds as a down payment or contract deposit, and no more than half of your contribution may be a gift.
- What credit score does HomeFirst require?
- A minimum of 620 for conventional financing, or 580 with an FHA-approved lender. Your mortgage must be a fixed-rate loan from an HPD-approved participating lender; adjustable-rate and interest-only loans are not allowed.
- Are there any fees?
- A non-refundable $1,500 processing fee paid to the loan servicer: $250 when your application is submitted and $1,250 at closing.
- Is HomeFirst accepting applications right now?
- Yes. HPD accepts HomeFirst applications only through approved counseling agencies, so the first step is enrolling in homebuyer education with an agency like NYC Housing Partnership.
- Can HomeFirst be combined with other assistance?
- Often, yes. Programs like SONYMA down payment assistance have their own rules, and the combined financing must stay within HomeFirst's loan-to-value limits. Your housing counselor and participating lender will confirm what stacks for your purchase.