By the MoveMatched editorial team · Last updated 2026-11-01
If you want to buy your first home in New York City, HomeFirst can be the biggest help available. The city's housing agency, HPD, offers qualified first time buyers up to $100,000 toward a down payment or closing costs, as a forgivable loan. With rates still high this fall, that kind of help can matter more than a small rate change. Here is how it works and the steps to apply.
What is HomeFirst?
HomeFirst is a down payment assistance program run by the NYC Department of Housing Preservation and Development. It provides up to $100,000 toward the down payment or closing costs on a one to four family home, a condo or a co-op in one of the five boroughs. You must live in the home as your main residence.
The help is a forgivable loan. You do not make monthly payments on it, but you must keep living in the home for a set period.
How long do I have to live in the home?
HPD sets the owner occupancy period by the size of the loan: 10 years for loans of $40,000 or less and 15 years for loans over $40,000. City funded loans require 15 years regardless of the amount. If you sell or move out early, part of the loan may have to be repaid, so read the terms before you sign.
Who qualifies?
According to HPD's page, with income limits effective June 1, 2026:
- You must be a first time homebuyer.
- Household income up to 120% of area median income. HPD lists $142,560 for one person and $203,520 for a household of four.
- You contribute at least 3% of the purchase price from your own funds, as a down payment or contract deposit.
- You complete a homebuyer education course with an HPD approved counseling agency and get a certificate.
- The home must pass a quality inspection and be priced at or below 95% of HUD's purchase price limits.
What are the steps to apply?
- Contact an HPD approved housing counseling agency in your borough.
- Complete the HomeFirst application with the agency and provide your documents.
- Get preapproved by a participating lender, using your Certificate of Eligibility.
- Find a home that meets the program's price limit, with help from a real estate agent.
- Hire a real estate attorney and negotiate the contract of sale.
Can I combine HomeFirst with other help?
Ask your counseling agency and lender. New York State's SONYMA programs offer lower rate mortgages and down payment help for first time buyers in the state, and your lender will know which combinations are allowed. Outside the city, some cities in Westchester have run their own first time buyer programs, so check your city's housing office.
How does this fit with today's market?
Co-ops and condos make up a large share of homes for sale in many parts of the city, and each has its own rules. Co-op boards often set their own minimum down payment and financial requirements, which can be stricter than the lender's. Ask about board rules early, before you fall in love with an apartment.
Use our closing cost calculator to see the cash you need on top of the down payment. In New York City, closing costs can include the mortgage recording tax and, on homes of $1 million or more, the mansion tax.
Checklist to get started
- Check the current income limits on HPD's page.
- Save at least 3% of your target price from your own funds.
- Book a homebuyer education class early.
- Get your credit report and fix errors before you meet a lender.
Questions people ask
- How much is NYC HomeFirst?
- Up to $100,000 toward a down payment or closing costs, as a forgivable loan from HPD.
- What is the HomeFirst income limit in 2026?
- Up to 120% of area median income. HPD lists $142,560 for one person and $203,520 for four, effective June 1, 2026.
- Do I have to pay HomeFirst back?
- It is forgiven if you live in the home for the required period: 10 years for $40,000 or less and 15 years above that or for city funded loans.
- Can I use HomeFirst for a co-op?
- Yes. One to four family homes, condos and co-ops in the five boroughs can qualify if they meet the program rules.