HomeFirst Down Payment Assistance Program

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HomeFirst Down Payment Assistance Program


About HomeFirst

The HomeFirst Down Payment Assistance Program provides qualified first-time homebuyers with up to $100,000 toward the down payment or closing costs on a 1-4 family home, a condominium, or a cooperative in one of the five boroughs of New York City.

Program Eligibility

A prospective homebuyer must:

  • Be a first-time homebuyer
  • Complete a homebuyer education course taught by an HPD-approved counseling agency
  • Work with an HPD approved Housing Counseling Agency to complete a 2024 HomeFirst Loan Application (Required documentation can be found here).
  • Have their own savings to contribute to the down payment or closing costs
  • Meet program income eligibility requirements
  • The borrower must provide a minimum downpayment or contract deposit of at least 3% of the total purchase price sourced from their own funds, towards the home purchase.
  • Purchase a 1-4 unit family home, a condominium, or a cooperative for owner-occupancy in one of the five boroughs of New York City
  • Pass a Housing Quality Standards (HQS) inspection before purchase
  • Live in the home for at least:
    • 10 years if the loan received is less than or equal to $40,000
    • 15 years if the loan is greater than $40,000
    • For City-funded loans, owner occupancy period is 15 years regardless of loan amount.
  • Have a maximum household income up to 120% AMI:
Family Size Maximum Household Income up to 120% AMI
1 – Person Household

$130,440
2 – Person Household

$149,160
3 – Person Household

$167,760
4 – Person Household

$186,360
5 – Person Household

$201,240
6 – Person Household

$216,120
7 – Person Household

$231,120
8 – Person Household

$246,000

Buyers receiving a down payment assistance loan less than or equal to $40,000 must reside in the home purchased for at least 10 years. Buyers receiving loan greater than $40,000 must reside in the home purchased at least 15 years. For City-funded loans, owner occupancy period is 15 years regardless of loan amount.

Effective Date: 6/01/24; Source: U.S. Department of Housing and Urban Development

HOME Purchase Price Limits for Existing Homes*

Applicant must purchase an existing home at or below 95% of the HUD purchase price limits:

County 1 - Unit 2 - Unit 3 - Unit 4 - Unit

Bronx

$636,000

$814,000

$985,000

$1,220,000  

Kings

$712,000

$911,000

$1,103,000

$1,366,000

New York

$636,000

$814,000

$985,000

$1,220,000

Queens

$684,000

$876,000

$1,060,000

$1,313,000

Richmond

$636,000

$814,000

$985,000

$1,220,000
The limits above are effective as of September 1, 2024, and will remain in effect until HUD issues new limits.

If applicants wish to purchase a newly built or rehabilitated home, please visit this link for eligible purchase price limits.

Process

Community-based counseling agencies certified by HUD and approved by HPD to participate in the HomeFirst program will promote the program through newsletters, flyers, and seminars; distribute program guidelines; and enroll consumers in Homebuyer Education classes. The counseling agencies will also certify income eligibility for the Down Payment Assistance Program, counsel consumers about program requirements, certify completion of Homebuyer Education classes, and refer consumers to participating lenders for pre-approval. Contact any one of the following HPD-approved counseling agencies.

Contact a counseling agency today!
Please reach out to one of the Counseling Agencies in your borough from the list below to start the application process.

Counseling Agencies

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Click a borough, or press the enter key on a borough, to reveal the counseling agencies in that borough.

Upon the successful completion of the Homebuyer Education class, prospective home buyers will receive a certificate that verifies their eligibility for the forgivable loan of up to $100,000 towards the down payment or closing costs on a new home. After receiving the certificate, prospective homebuyers begin the path to homeownership. 

Step 1: Present the certificate of eligibility to a participating lender for pre-approval on a mortgage loan.

Step 2: After receiving pre-approval from a participating lender, consult a reputable real estate professional to identify an affordable home.

Step 4: Hire a real estate lawyer.

Step 5: Negotiate a contract of sale with the seller.

The homebuyer education counselors will be available to assist program participants throughout the home buying process. Program participants are encouraged to take advantage of this resource.

Program Administration

The NYC Department of Housing Preservation and Development (NYCHPD) administers the HomeFirst Down Payment Assistance Program. Neighborhood Housing Services of New York City (NHSNYC) and The Center for New York City Neighborhoods (CNYCN) service the program on HPD's behalf. As Loan Program Servicers both NHSNYC and CNYCN work with homebuyers and their counseling agency representative to:

  • Request from the homebuyer copies of:
    • Home buyer education certificate
    • HomeFirst Certificate of Eligibility
    • Bank pre-approval
    • Sales contract
  • Receive the HomeFirst application
    • Review signed contract
    • Verify eligibility of property based on location and type of property
    • Verify income of mortgage applicants
    • Verify eligibility of HomeFirst applicants
    • Review pre-approval and verify lender is a participating lender
  • Reserve funds for closing
  • Receive copy of lender commitment letter
  • Receive confirmation of closing date
  • Release funds for closing