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Down Payment Assistance in New York: Programs, Limits and How to Apply
In New York, the State of New York Mortgage Agency (SONYMA), part of Homes and Community Renewal (HCR), offers a Down Payment Assistance Loan (DPAL) of up to 3% of the purchase price (up to $15,000) or $3,000, whichever is highest. It carries 0% interest, has no monthly payments and is forgiven after 10 years. It is an add-on to a SONYMA mortgage, and not every participating lender offers it.
Facts read from the agency pages on October 15, 2026. Programs, limits and funding change, so confirm with the agency and a participating lender before you rely on a figure.
Who runs down payment assistance in New York?
Which New York programs offer down payment help?
Down Payment Assistance Loan (DPAL)
Administered by SONYMA, a subsidiary of HCR.
- What it offers: A minimum of $1,000 and a maximum of 3% of the purchase price (up to $15,000) or $3,000, whichever is highest. It cannot exceed your actual down payment and closing costs, and it can cover a portion of mortgage insurance premiums.
- Repayment: 0% interest and no monthly payments, forgiven after 10 years. If you sell or refinance within 10 years, the amount you repay decreases by 1/120 per month.
- Works with: A SONYMA mortgage, on any property type that program allows, including cooperatives. First-time mortgages with a DPAL carry an interest rate 0.40% higher than mortgages without one, with exceptions for Graduate to Homeownership, Homes for Veterans and ENERGY STAR.
- Who qualifies: You must contribute at least 1% of the property value in cash, or 3% for cooperatives and three- and four-family homes. Cash back at closing is not allowed except in special circumstances. The DPAL page does not state a minimum credit score, and it lists no income or price limit of its own, so the limits of your SONYMA mortgage apply.
- Availability: The page does not say the program is closed or paused. It says not all participating SONYMA lenders offer DPALs.
DPAL PLUS 2026
Administered by SONYMA.
- What it offers: Per the June 2026 term sheet, help with down payment, closing costs and single premium mortgage insurance until the purchase money mortgage reaches 80% loan-to-value, up to $30,000.
- Repayment: 0% interest, forgiven in equal monthly installments over 120 months of owner occupancy. Any remaining balance is subject to recapture.
- Works with: Any SONYMA Bond Program purchase or purchase renovation mortgage, with the DPAL PLUS in second lien position. The primary mortgage rate increases by 0.40%.
- Who qualifies: Per the term sheet: owner-occupied homes in New York State, first-time buyers or buyers in a federally designated targeted area, household income of no more than 60% of area median income, and a purchase price of no more than $500,000. Homebuyer education must be completed before loan approval. The term sheet gives no minimum credit score.
- Availability: Funds are limited (the term sheet says $7.5 million) and offered first-come, first-served. The program page says DPAL PLUS 2026 is available throughout New York State and that the program ends when funds are depleted. Ask a participating lender whether funds remain.
Repayable Second Lien (RSL)
Administered by SONYMA.
- What it offers: An interest-free, deferred-payment second mortgage of at least $3,000 and up to 5% of the net purchase price. It cannot exceed your actual down payment and closing costs.
- Repayment: Repaid on sale, refinance or payoff of the first mortgage. It is not forgiven.
- Works with: Any SONYMA first mortgage, with a 0.40% higher rate on first-time mortgages carrying an RSL. The RSL cannot be subordinate to another mortgage or home equity line.
- Who qualifies: Aimed at low- and moderate-income New Yorkers. You must contribute at least 1% of the property value in cash (3% for cooperatives and three- and four-family homes). The RSL page states no credit score, first-time buyer or income rule of its own.
- Availability: The page does not say the program is closed or paused. It says not all lenders offer RSLs.
Low Interest Rate Program and Achieving the Dream Program
Administered by SONYMA.
- What it offers: 30-year fixed-rate SONYMA mortgages with no points and no prepayment penalties. The pages say the down payment can be as low as 3% and that 3% down payment assistance is available. SONYMA describes Achieving the Dream as its lowest-rate option.
- Repayment: These are first mortgages, repaid monthly. Mortgage insurance is required below 20% down.
- Works with: Single-family homes, condos, co-ops and two- to four-family homes at least five years old, as your primary residence in New York State.
- Who qualifies: You must be a first-time buyer, with exceptions for eligible military veterans and purchases in a Target Area, and you must complete a homebuyer education course. The pages say "good credit" and give no numeric score.
- Availability: Funds are limited and first-come, first-served. The pages do not say they are closed.
Affordable Housing Corporation (AHC)
Administered by HCR.
- What it offers: Grants of up to $75,000 per unit. AHC gives these grants to sponsors, not directly to individuals.
- Repayment: Set by the local organization that receives the AHC funding.
- Works with: Homebuyers apply through local organizations that receive AHC funding.
- Who qualifies: Households generally earn between 100% and 166% of HUD Low Income Limits, and the local organization verifies income.
- Availability: HCR issued the 2026 to 2027 funding notice on July 16, 2026, and accepts applications until the funds are appropriated.
What are the income and price limits in New York?
Each limit below is the range the agency published, as of the date shown.
| Limit | Range | In effect | Source |
|---|---|---|---|
| Household income limits, Low Interest Rate Program | $111,900 (one to two persons, lowest-limit counties) to $237,440 (three or more persons, highest-limit counties) | Reservations accepted July 6, 2026 and until further notice | SONYMA Low Interest Rate Program limits (PDF) |
| Household income limits, Achieving the Dream Program | $89,520 (one to two persons, lowest-limit counties) to $189,950 (three or more persons, highest-limit counties) | Reservations accepted July 6, 2026 and until further notice | SONYMA Achieving the Dream limits |
| Purchase price limits, both programs | $566,350 (one-family home, lowest-limit counties) to $3,072,530 (four-family home in a target area, highest-limit counties) | Reservations accepted July 6, 2026 and until further notice | SONYMA Achieving the Dream limits |
| DPAL PLUS 2026 | Household income of 60% of area median income and a $500,000 purchase price limit. SONYMA's term sheet and its income limits web page show different dollar income limits, so check the current table with SONYMA before relying on a figure. | Term sheet revised 06/2026 | SONYMA DPAL PLUS 2026 term sheet (PDF) |
How do I apply for down payment assistance in New York?
- Gather your income and savings documents and get pre-qualified.
- Contact a participating SONYMA lender. Not all participating lenders offer the DPAL, the RSL or DPAL PLUS, so ask before you commit.
- Find a home, sign a contract and pay a good faith deposit, usually about $1,000.
- Update your application, sign it and lock your rate. SONYMA and its mortgage pool insurer review the loan, which adds about one week.
Can I combine New York assistance with gift funds or employer help?
Gift funds
The SONYMA pages we read for the DPAL, the RSL and the Low Interest Rate and Achieving the Dream programs do not say whether gift funds can be used. For its Homes for Veterans program, SONYMA says the 2% above the 1% minimum contribution can come from a gift or other acceptable source. Ask your participating lender about your loan.
Employer help
The SONYMA pages we read do not address employer assistance. Ask your participating lender before you rely on it.
Other assistance
SONYMA says other grants and subsidies can be included with no limit on the Low Interest Rate and Achieving the Dream programs. DPAL PLUS 2026 must be applied after other subsidies, and other subordinate financing must sit behind it unless a parity agreement is provided. Graduate to Homeownership can be combined with DPALs.
Gift rules also depend on your loan type. See what cash to close includes for how down payment and closing costs add up, and the down payment assistance guide for how gifts, employer help and assistance can fit together.
Which sources does this page rely on?
Every figure above comes from the agency pages below.
| Source | Date |
|---|---|
| SONYMA Down Payment Assistance Loan (DPAL) and DPAL PLUS 2026 | No page date shown, read October 15, 2026 |
| SONYMA DPAL PLUS 2026 term sheet | Rev. 06/2026, read October 15, 2026 |
| SONYMA Repayable Second Lien (RSL) | No page date shown, read October 15, 2026 |
| SONYMA Low Interest Rate Program | No page date shown, read October 15, 2026 |
| SONYMA Achieving the Dream Program | No page date shown, read October 15, 2026 |
| HCR Affordable Housing Corporation | Funding notice July 16, 2026, read October 15, 2026 |
| SONYMA how to apply | No page date shown, read October 15, 2026 |
Frequently asked questions
How much down payment assistance can I get in New York?
Do I have to pay back a New York DPAL?
Does a DPAL change my mortgage rate?
Do I have to be a first-time buyer and take a class in New York?
Can I use gift funds or employer help with New York programs?
Down payment assistance in other states
See which down payment programs you may qualify for
The free Dream Score maps down payment assistance programs you may qualify for.
Get your Dream ScoreDisclosure: This content is for informational purposes only and does not constitute financial, legal, mortgage, or tax advice. Program rules vary by lender, location and loan. Dreamfund is not affiliated with any housing agency named here. Consult a licensed mortgage professional for guidance specific to your situation. Dream Fund AI LLC does not guarantee any savings outcome, loan approval, or home purchase result.