Buying your first home in New York City can feel out of reach, but the city runs one of the most generous down payment programs in the country — HomeFirst, worth up to $100,000 — that far too few buyers ever hear about.
This guide focuses on what first-time buyers in New York City specifically can tap in 2026 — the local programs run by the city and county, the statewide help you can layer on top, and what it realistically takes to buy here.
New York City’s own first-time buyer programs
New York City’s help comes through the Department of Housing Preservation and Development (HPD) and its nonprofit partners:
- HomeFirst Down Payment Assistance — a forgivable second from NYC HPD of up to $100,000 for first-time buyers earning up to 120% of area median income; it is forgiven over a 10-to-15-year residency period, and you contribute at least 3% of the price
- Open Door — HPD subsidies that lower the cost of newly built affordable co-ops and condos, awarded through housing lotteries rather than on the open market (amounts vary by project)
These local programs are the piece most buyers miss, because they are run by the city or county rather than a lender — and they can often be combined with the statewide programs below.
Statewide programs you can also use in New York City
On top of New York City’s local help, every New York buyer can access the state’s housing finance programs — below-market loans, down payment assistance, and a possible tax credit. We cover them in full in our guide to New York first-time home buyer programs, and the wider local picture in our New York first-time home buyer guide. In many cases you can stack a city program with a state program to cover most or all of your cash to close — a lender who works with both can structure it.
What it takes to buy in New York City
The New York City metro median sale price runs roughly $700,000 to $800,000, but it varies enormously by borough — Manhattan condos routinely top $1 million, while parts of the Bronx and Staten Island are far more attainable. Comfortably affording a typical home generally takes a household income in the $150,000–$200,000+ range, which is exactly why a program like HomeFirst, covering up to $100,000, changes the math for so many first-time buyers.
Before you shop, pin down your budget. Our home affordability guide walks through how income, debt, and rates set your price range, and our first-time home buyer checklist keeps the rest of the process on track.
Loan options for New York City buyers
Most New York City first-time buyers use one of a few loan types, each of which can pair with the assistance above:
- FHA loans — 3.5% down with flexible credit, popular with first-time buyers
- Conventional loans — as little as 3% down, with reduced mortgage insurance through state HFA versions
- VA and USDA loans — zero down for eligible veterans and in qualifying areas
- Down payment assistance — city and state programs that layer on top (see our down payment assistance guide)
How to buy your first home in New York City
- Check your budget and credit first — see our guide to credit score requirements.
- Complete a homebuyer education course — nearly every New York City and New York program requires one, and it is usually free.
- Find a lender who works with both New York City and New York programs, and ask them to run the city and state options together.
- Get pre-approved, then line up your assistance before you make an offer.
One note: local and state program funding and terms change, and some rounds close when the money runs out. Always confirm current amounts and availability with the program administrator before counting on a figure.
New York City first-time buyer FAQ
What down payment help is available in New York City?
The headline program is HomeFirst, a forgivable second of up to $100,000 from NYC HPD for first-time buyers up to 120% of area median income. It is forgiven over 10 to 15 years in the home. The Open Door program separately subsidizes newly built affordable co-ops and condos through housing lotteries. Both require homebuyer education, and HomeFirst asks for a 3% minimum contribution.
Can I combine New York City city programs with New York state programs?
Often yes. City or county assistance is usually designed to layer on top of a first mortgage, and many buyers stack it with a New York state program to cover most of their down payment and closing costs. A lender who participates in both can confirm what combines. See our New York programs guide for the statewide options.
Do I have to be a first-time buyer to qualify in New York City?
Yes — HomeFirst requires first-time buyer status, generally meaning no ownership interest in a home during the prior three years. The home must be a one-to-four-family house, condo, or co-op in the five boroughs, and your primary residence. Income limits (up to 120% of area median income) apply and update yearly.
How does NYC’s HomeFirst program work?
HomeFirst provides up to $100,000 toward your down payment and closing costs as a forgivable second mortgage from NYC HPD. You must be a first-time buyer earning up to 120% of area median income, complete an HPD-approved homebuyer education course, and contribute at least 3% of the purchase price yourself. The assistance is forgiven gradually over 10 to 15 years of living in the home. Because funding and income limits change, confirm current details with an HPD-approved counseling agency.