New York offers strong first-time buyer help — including one of the largest local programs in the country in New York City — though most of it is technically forgivable assistance rather than an outright grant.
This guide covers what actually counts as grant money for first-time buyers in New York in 2026 — the help that does not have to be repaid, the truth about the federal grant everyone asks about, and how to find and qualify for it.
Are there really first-time home buyer grants in New York?
Here is the honest answer most sites skip: a true grant is money you never repay, but the majority of what gets marketed as a “first-time home buyer grant” is actually a forgivable loan — a second mortgage that is written off over time as long as you stay in the home. The practical difference is small if you plan to stay put, but it matters if you might sell or refinance early. In New York, the flagship SONYMA help is a forgivable second, and New York City runs an exceptionally large local program on top.
For the full difference between grants, forgivable seconds, and deferred loans, our national guide to down payment assistance breaks it down.
New York grant and forgivable-money programs
Here is New York’s grant-like money, statewide and in NYC:
- SONYMA Down Payment Assistance Loan (DPAL) — a forgivable second at 0% interest, forgiven after 10 years, worth the greater of $3,000 or 3% of the price, up to $15,000
- SONYMA DPAL Plus — an enhanced forgivable second of up to $30,000 for eligible buyers, also forgiven over 10 years
- NYC HomeFirst — for New York City buyers, a forgivable loan of up to $100,000 — one of the most generous local programs in the country
This page focuses on the no-repay and forgivable money. For the full menu — including deferred loans, below-market mortgages, and the Mortgage Credit Certificate — see our complete guide to New York first-time home buyer programs.
The $25,000 first-time buyer grant — is it real?
You have probably seen ads for a “$25,000 first-time home buyer grant” or a “$15,000 first-time buyer tax credit.” Here is the truth as of 2026: both come from proposed federal bills (the Downpayment Toward Equity Act and the First-Time Homebuyer Tax Credit Act) that have not become law. No one can give you that $25,000 federal grant today, in New York or anywhere else, because it does not exist yet — so be cautious with any site or “lender” that promises it. We track the real status on our explainer of the $25,000 first-time home buyer grant. The good news: the New York programs above are real, available now, and often just as valuable.
How to qualify for a grant in New York
Grant and forgivable programs in New York share a familiar set of rules:
- Income limits. SONYMA sets household income limits by county and household size; NYC HomeFirst reaches up to 120% of area median income.
- First-time status. First-time status is required, with exceptions for eligible veterans and buyers in designated target areas.
- Homebuyer education. Nearly every grant program requires a short course, usually free and often online.
- A participating lender. Grants are delivered through approved lenders, not the agency directly, so ask which programs a lender offers — and check our guide to credit score requirements to be sure you qualify for the underlying loan.
- Primary residence. The home must be the one you live in, not an investment property.
How to find down payment grants in New York
If you are buying in New York City, the HomeFirst program dwarfs the statewide amount; elsewhere in the state, SONYMA’s DPAL is the main source.
Several New York cities also run their own grant and forgivable programs on top of the state help — see our city guides for New York City.
And before you count on any figure, remember that grant funding runs in cycles and can be exhausted, so always confirm current availability with the program. Our first-time home buyer checklist keeps the rest of your purchase on track.
New York first-time buyer grants FAQ
Do first-time home buyer grants in New York have to be repaid?
New York’s help is forgivable rather than repayable in most cases — SONYMA’s DPAL forgives over 10 years, and NYC HomeFirst forgives over 10 to 15 years. You keep the money if you stay; sell early and you repay the unforgiven portion. That makes it grant-like as long as you stay put.
Is there a $25,000 grant for first-time buyers in New York?
Not currently. The $25,000 figure comes from a proposed federal bill (the Downpayment Toward Equity Act) that has not become law, so it is not available in New York or any state today. What is available are New York’s real grant and forgivable programs described above, plus the statewide options in our New York programs guide.
Who qualifies for down payment grants in New York?
First-time status is required, with exceptions for eligible veterans and buyers in designated target areas. SONYMA sets household income limits by county and household size; NYC HomeFirst reaches up to 120% of area median income. You will also complete a homebuyer education course and use a participating lender.
How much is the NYC HomeFirst grant?
NYC HomeFirst provides up to $100,000 as a forgivable loan from the city’s Department of Housing Preservation and Development, for first-time buyers earning up to 120% of area median income. It is forgiven over a 10-to-15-year residency period and requires a 3% contribution plus homebuyer education. Because it is far larger than the statewide SONYMA amount, NYC buyers should prioritize it — confirm current terms with an HPD-approved counseling agency.