Down Payment Path

Down Payment Assistance Programs in New York

New York offers several programs to help homebuyers cover down payment and closing costs. These initiatives are designed to make homeownership more accessible to both first-time and repeat buyers across the Empire State.

SONYMA Down Payment Assistance Loan (DPAL)

The State of New York Mortgage Agency (SONYMA) Down Payment Assistance Loan (DPAL) provides financial support to help buyers with upfront costs.

  • Offers up to $15,000 or 3% of the home’s purchase price, whichever is greater.
  • Provided as a forgivable loan if the buyer remains in the home for 10 years.
  • Pairs with SONYMA’s low-interest mortgage products.
  • Available to buyers who meet income and purchase price limits.

Achieving the Dream Program

The Achieving the Dream Program offers affordable mortgage options with down payment assistance for eligible buyers.

  • Provides low fixed interest rates for 30-year mortgages.
  • Includes down payment assistance through DPAL.
  • Open to both first-time and repeat buyers in targeted areas.
  • Income and purchase price limits apply.

USDA Rural Development Loans

For buyers in rural parts of New York, the USDA Rural Development Loan offers financing with no down payment required.

  • Available to low- and moderate-income buyers in USDA-designated areas.
  • Features competitive interest rates and flexible credit requirements.
  • Can be combined with SONYMA programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program provides valuable tax savings to reduce the cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their annual mortgage interest.
  • Can be paired with SONYMA loans and down payment assistance programs.
  • Income and purchase price limits apply but are set to accommodate a wide range of buyers.

Local Assistance Programs

Many cities and counties in New York offer additional resources for homebuyers to help with upfront costs.

  • Programs in areas like New York City, Buffalo, and Rochester often include grants or low-interest loans for down payments and closing costs.
  • Some local initiatives provide targeted benefits for specific groups, such as educators, first responders, or buyers purchasing in revitalization neighborhoods.
  • Eligibility requirements and funding levels vary by location.

New York’s down payment assistance programs are designed to reduce financial barriers, making homeownership more attainable for buyers across the state. Whether you’re purchasing your first home or upgrading, these resources can help you achieve your goal of owning a home in the Empire State.