Do I need 20 percent down to buy in NYC?

No. FHA is 3.5 percent down, VA is zero down for veterans, and conventional first time buyer programs can be 3 percent down. Waiting years to save 20 percent is often the costlier choice.

What is the HomeFirst program?

A New York City program (HPD) offering qualified first time buyers up to 100,000 dollars, the lesser of 100,000 or 20 percent of the price, as a forgivable loan toward a down payment or closing costs. Income limits, a homebuyer education course, and a participating lender apply, so confirm current terms.

The State of New York Mortgage Agency offers first time buyers below market rate mortgages plus down payment assistance, run through participating lenders.

Who qualifies me for these programs?

Your lender. Joseph is the agent, so he flags the programs, points you to lenders who do them, and finds you the home. The lender confirms exactly what you qualify for and how programs stack.

What buyer costs are specific to NYC?

The mortgage recording tax on financed purchases (co-ops are exempt) and the mansion tax, which starts at 1 percent on purchases of 1,000,000 or more.

Bridge and Boro · Real Broker

NYC First Time Home Buyer: Grants and Loans You Missed

Updated November 2026

Most first time buyers in New York City think they are years away from affording a home because they are saving for a 20 percent down payment, and many have no idea there are programs, some worth up to 100,000 dollars, built to get them in far sooner. Here is what most buyers miss, and who actually runs these.

You probably do not need 20 percent down

Waiting years to save 20 percent is often the more expensive choice, because rents and prices usually keep climbing while you save. There are real low down payment loans: an FHA loan lets you buy with as little as 3.5 percent down, including on a 2 family. A VA loan can get a veteran in with zero down and no monthly mortgage insurance. And conventional first time buyer programs can go as low as 3 percent down.

HomeFirst: up to 100,000 dollars

The city's HomeFirst program, run by the Department of Housing Preservation and Development, can give a qualified first time buyer up to 100,000 dollars toward a down payment or closing costs. It is a forgivable loan, so if you stay in the home as your primary residence for the required period it is forgiven. The amount is the lesser of 100,000 or 20 percent of the price. There are income limits, an approved homebuyer education course, a minimum of 3 percent of your own funds, and a participating lender, and the exact terms change, so confirm them with your lender.

SONYMA: state loans and down payment help

On the state side, SONYMA, the State of New York Mortgage Agency, offers first time buyers mortgages at below market interest rates and pairs them with its own down payment assistance. Between the city's HomeFirst money and the state's SONYMA programs, a first time buyer in Staten Island or Brooklyn has real tools to lower both the cash up front and the monthly rate.

Who runs these: your lender, not your agent

Here is the most important point. These programs, the FHA and VA and conventional loans, HomeFirst, and SONYMA, are all run and qualified through a lender, not through a real estate agent. Get connected with a good local lender, ideally one that participates in these programs, before you shop. My job as your agent is to make sure you know these programs exist so you can ask for them, point you to lenders who do them, and then find you the right home.

The NYC buyer costs to plan for

Beyond your down payment, two closing costs are specific to here. If you finance, there is a mortgage recording tax on your loan, though a co-op has none because it is shares, not real property. And the mansion tax starts at 1 percent once your price hits 1,000,000 dollars, paid by you the buyer. For most first time buyers under a million the mansion tax does not apply, but plan for it on a nicer 2 family or a South Shore home near that line.

Want help with this in Staten Island or Brooklyn?

I am usually with a client, so a text gets to me fastest. Tell me what you are thinking and I will give you a straight answer. Call or text 917-905-2541.