Who counts as a first time buyer?

Most programs count anyone who has not owned a home in the past three years. Each program sets its own rule, so confirm it with the program before you apply.

Can I combine programs?

Sometimes. SONYMA's DPAL is added to a SONYMA mortgage, and NYC HomeFirst can be used with other financing. Your lender confirms what can be combined for your loan.

Do these programs cost money to apply?

The programs themselves are run by public agencies. Lenders still charge normal loan fees, which you see on the Loan Estimate.

First time homebuyer programs in NJ and NY

The three big programs are NJHMFA in New Jersey, SONYMA across New York State, and HomeFirst inside New York City. Each one works through approved lenders or counseling agencies, has income limits, and expects you to take a homebuyer education course.

New Jersey: NJHMFA

First time homebuyer mortgage programs offered through participating lenders.
A down payment assistance loan that is interest free and forgiven over five years if you stay in the home.
A first generation add on for buyers whose parents did not own a home. Check the agency site for current amounts.

New York State: SONYMA

Achieving the Dream and Low Interest Rate programs: 30 year fixed rate loans with low down payment options. They can be used for co-ops.
Down Payment Assistance Loan (DPAL): the greater of 3% of the price up to $15,000, or $3,000. It is a 0% loan forgiven after 10 years.
Ask for a lender that is approved for SONYMA. Not every lender offers it.

New York City: HomeFirst

Up to $100,000 toward the down payment or closing costs for qualified first time buyers.
For one to four family homes, condos and co-ops in the five boroughs.
You must bring at least 3% of the price from your own funds and live in the home for 10 or 15 years depending on the amount.

Questions people ask

Who counts as a first time buyer?: Most programs count anyone who has not owned a home in the past three years. Each program sets its own rule, so confirm it with the program before you apply.
Can I combine programs?: Sometimes. SONYMA's DPAL is added to a SONYMA mortgage, and NYC HomeFirst can be used with other financing. Your lender confirms what can be combined for your loan.
Do these programs cost money to apply?: The programs themselves are run by public agencies. Lenders still charge normal loan fees, which you see on the Loan Estimate.

Official sources

Facts checked 2026-11-01. General information, not financial, legal or tax advice. We are not a lender.

Related: Buying in NJ and NY

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