Buying a home in New York City can feel out of reach due to high property prices and hefty down payments. However, the HomeFirst Down Payment Assistance Program, offered by the NYC Department of Housing Preservation and Development (HPD), is changing the game. This initiative provides forgivable loans of up to $100,000 to first-time homebuyers, helping them cover down payments and closing costs.
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Who Qualifies for HomeFirst Assistance?
To be eligible, applicants must meet the following criteria:
1. First-Time Homebuyer Status
You must not have owned a home within the last three years before purchasing your new property.
2. Personal Financial Contribution
A minimum 3% down payment is required, with at least 1% coming from your personal funds.
3. Mortgage Readiness
- A stable job and sufficient financial resources
- A minimum credit score of 620
- Approval for a mortgage from an HPD-approved lender
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4. Property Requirements
- Eligible properties include one-to-four family homes, condominiums, and cooperatives
- Homes must meet HUD’s housing quality standards
- The property must remain your primary residence for at least 10 years (if receiving $40,000 or less) or 15 years (if receiving more than $40,000)
5. Income Limits
Your household income must not exceed 80% of the Area Median Income (AMI). As of 2023:
- A single-person household limit: $87,100
- A four-person household limit: $124,400
6. Homebuyer Education Requirement
Applicants must complete a homebuyer education course from an HPD-approved counseling agency.
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Step-by-Step Guide to HomeFirst Assistance
Step 1: Attend Homebuyer Education Classes
This course provides essential knowledge on the home-buying process, financing options, and program requirements.
Step 2: Receive Your HomeFirst Certificate
Upon completing the course, you’ll get a certificate valid for six months, with an option to renew.
Step 3: Apply for the HomeFirst Loan
Your counseling agency will submit your application to HPD’s Loan Servicer for verification and approval.
Step 4: Secure a Mortgage and Find a Home
Obtain financing from an approved lender and purchase a qualifying property in NYC.
Step 5: Closing Process
Once all criteria are met, HPD wires the funds to your lender at closing, reducing your out-of-pocket expenses.
Loan Terms & Forgiveness Conditions
- Covers up to 20% of the home’s purchase price (max $100,000)
- 0% interest and no monthly payments
- Fully forgivable after 10-15 years, depending on the loan amount
- If you sell or move out before the required period, a portion of the loan may need to be repaid
Eligible Properties & Price Limits
The HomeFirst program applies to:
✔ Single-family homes
✔ Multi-family (2-4 unit) properties
✔ Condos & Co-ops
Purchase price limits vary by borough. As of 2023, limits range from $612,000 in Manhattan to $699,000 in Brooklyn for single-family homes.
Mortgage Requirements
- Only fixed-rate mortgages are allowed
- Loan-to-value (LTV) ratio up to 97% and combined loan-to-value (CLTV) up to 115%
- Debt-to-income (DTI) ratio cannot exceed 55%
- Minimum credit score of 620 (some FHA loans may allow 580)
How to Get Started with HomeFirst
Owning a home in NYC doesn’t have to be just a dream. The HomeFirst Down Payment Assistance Program makes it possible for first-time buyers to bridge the affordability gap and step into homeownership with financial support, education, and structured assistance.
Take the first step today!
Visit the NYC HPD website or contact an HPD-approved counseling agency to start your journey to owning a home in New York City.
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