New York State First-Time Home Buyer Programs of 2023

The State of New York Mortgage Agency, or SONYMA, offers special programs to qualified first-time home buyers who want to purchase a home in state. If you haven’t owned a primary residence during the past three years, SONYMA considers you a first-time home buyer.

SONYMA highlights and eligibility requirements

SONYMA programs are offered to New York state first-time home buyers, as well as repeat buyers purchasing in a federally designated target area.

Highlights

• Down payment assistance is offered.

• Additional funds may be available for repairs and remodeling through the RemodelNY program.

• Options for single-family and multiunit properties, including condos and co-ops.

• Three programs specific to East Buffalo residents: Buffalo East Homeowner Assistance Fund, Buffalo East Homeowner Improvement Program and East Buffalo Down Payment Assistance Plus Program.  

Eligibility

• Must meet county limits on household income and purchase price.

• Credit requirements vary by program. 

• Borrower cash contribution of 1%-3% of purchase price.

• Must attend a home buyer education course.

• Additional requirements apply when purchasing a condo or co-op unit.

» MORE: Compare SONYMA mortgage lenders

New York state first-time home buyer programs

Achieving the Dream

Best for:

Low down payment, low mortgage rates

What you need to know:

The Achieving the Dream program is offered to low-income, first-time home buyer applicants. Borrowers will receive reduced interest rates and a low down payment requirement (1%-3%) on a 30-year loan. The mortgage can finance the purchase and renovation of a one- to four-unit dwelling, including condos, co-ops or manufactured homes affixed to a permanent foundation. Borrowers can pair Achieving the Dream with other SONYMA programs for down payment assistance as well as funds for repairs and remodeling.

Conventional Plus Program

Best for:

An all-in-one solution for low-income borrowers

What you need to know:

This loan, eligible for primary residences only, wraps a lot of features into one program. It’s the Swiss army knife of mortgage assistance: This 30-year purchase loan combines flexible loan approval standards with down payment assistance. That assistance can also be used for closing costs and an upfront mortgage insurance payment, which can help borrowers avoid a monthly mortgage insurance premium. First-time buyers qualify, as well as existing homeowners who meet income limits.

Low Interest Rate Program

Best for:

Low mortgage rates

What you need to know:

Qualified home buyers get a favorable interest rate in SONYMA’s Low Interest Rate Program. The program lets you lock in an interest rate for 120 days for existing housing, or 240 days for co-ops, distressed sales or properties under construction. Check the SONYMA website to compare current SONYMA interest rates, though. You might get an even lower rate through the Achieving the Dream Program, if you are eligible.

Down Payment Assistance Loans

Best for:

Down payment assistance

What you need to know:

A down payment assistance loan can be combined with any SONYMA mortgage program. While this is a loan, there are no monthly payments required, and interest is not charged. In fact, the loans are forgiven after 10 years if borrowers maintain their primary SONYMA financing and continue living in the home. Minimum down payment assistance loans are $1,000; the maximum is $3,000 or 3% of the home’s purchase price — whichever is higher, up to a $15,000 limit. And as mentioned above, a down payment assistance loan may be used for closing costs. Your interest rate on a SONYMA loan may be a little higher with a down payment assistance loan, though some programs are excluded from the bump in rate. Some lenders may not offer down payment assistance loans.

Homes for Veterans Program

Best for:

Veterans and active-duty U.S. military

What you need to know:

This program aims to help veterans and active-duty U.S. military personnel buy a home, even if it’s not their first. The loans offer favorable terms, and it can be combined with the SONYMA Down Payment Assistance Loan. Military-affiliated borrowers (including spouses and co-borrowers) don’t have to meet first-time buyer requirements and generally get a break on interest rates.

RemodelNY

Best for:

Home improvements

What you need to know:

RemodelNY is an optional add-on for one- to four-unit properties financed through the Low Interest Rate or Achieving the Dream mortgage programs. Funds from the Homes for Veterans enhancement program can be used, as well. Whether you have your eye on a fixer-upper or a home that simply needs a few upgrades, RemodelNY funds can help get you there.

Energy Star Labeled Homes Program

Best for:

Energy-efficient new construction

What you need to know:

If you’re buying new construction or building a home, this program allows you to install energy-efficient upgrades (such as insulation or appliances) and enjoy a slightly lower rate than the SONYMA standard interest rate. The Energy Star Labeled Homes Program can be combined with a SONYMA mortgage and the Down Payment Assistance Loan, if you qualify. To be eligible, the home must undergo a third-party inspection from a certified Home Energy Rating System, or HERS, rater.

FHA Plus Program

Best for:

Flexible credit requirements

What you need to know:

FHA loans have more lenient requirements than conventional mortgages. Available for new home buyers or existing homeowners, the FHA Plus Program incorporates SONYMA’s down payment assistance with an FHA-backed mortgage. This can help you reduce the mortgage insurance premium you pay on an FHA loan.

Graduate to Homeownership Program

Best for:

Recent college graduates (within the past 48 months)

What you need to know:

An innovative program geared to recent college graduates, SONYMA provides down payment assistance, favorable interest-rate loans and homebuying education to prospective borrowers. For fixer-uppers, this program can be combined with funds from the RemodelNY program. Income limits and other requirements apply. A unique qualifier: Applicants must be looking to buy their first home in specified upstate New York communities slated for downtown revitalization. See a list of eligible locations on the SONYMA website.

Neighborhood Revitalization Program

Best for:

Home improvements

What you need to know:

A major priority for New York state’s home buyer initiatives is to improve neighborhoods and revitalize communities. The Neighborhood Revitalization Program offers up to $20,000 for prospective homeowners to renovate a home in need of repair. Once exclusive to a short list of communities, these funds are now available statewide and can be combined with other SONYMA programs. Income limits apply.

Manufactured Home Mortgage Program

Best for:

Manufactured homes

What you need to know:

Low- and moderate-income buyers can qualify for a purchase or refinance loan on a manufactured home through SONYMA. These mortgages are available to residents who lease land in a manufactured home community or own their own land.

Give Us Credit

Best for:

Imperfect credit or nontraditional sources of income

What you need to know:

Typically, mortgage lenders like to see two years of stable employment before approving borrowers for a mortgage. But for some hopeful buyers, the financial past wasn’t that predictable. The Give Us Credit program offers more flexible guidelines for first-time home buyers to prove financial readiness. That means borrowers who have overcome financial struggles (such as bankruptcy or foreclosure) can qualify, as well as people who rely on family or community support or fluctuating sources of income. This 30-year, fixed rate mortgage includes the Down Payment Assistance Loan. Credit review is more flexible than other loans, and nonoccupant co-buyers can pitch in, too.

Note that the lender you work with may have additional borrower requirements than those stated in any SONYMA assistance program. They may include credit score minimums or other credit qualifications. So, dig into the programs you’re interested in, learn all you can, then talk to a few lenders about the possibilities.

To find participating lenders, search the SONYMA lender list.

» MORE: The best homeowners insurance in New York

First-time home buyer programs near New York

• Connecticut first-time home buyer programs.

• Massachusetts first-time home buyer programs.

• New Jersey first-time home buyer programs.

• Pennsylvania first-time home buyer programs.

• Vermont first-time home buyer programs.

More from NerdWallet

• How much house can you afford?

• Compare New York mortgage rates.

National first-time home buyer programs

You don't have to be an Empire State resident to access these national programs. They are a good first step before you drill down to state-sanctioned initiatives.