For many first-time buyers, the monthly payment is only half the problem. The other half is reaching the closing table with enough cash. You may be able to carry the mortgage and monthly building charges and still need more time to save for the deposit and closing costs.
NYC’s **HomeFirst Down Payment Assistance Program** can help close that gap. The Department of Housing Preservation and Development (HPD) offers qualified first-time buyers a **0% interest, forgivable loan** toward a down payment or eligible closing costs. The maximum is the lesser of **20% of the purchase price or $100,000**. The program reviews your household finances, your mortgage and the specific home you want to buy before approving an amount. [HPD]
Who qualifies for NYC HomeFirst down payment assistance?
**Start with your ownership history and household income.** HomeFirst’s first-time buyer rule looks back three years, so someone who owned a home longer ago may qualify. Your gross annual household income must be at or below **120% of Area Median Income (AMI)**, with the dollar limit based on household size. HPD also sets a household asset limit tied to that same income threshold. An approved housing counselor can help you determine what income and assets count. [nyc.gov]
| Household size | Maximum gross annual household income |
| — | —: |
| 1 person | $142,560 |
| 2 people | $162,840 |
| 3 people | $183,240 |
| 4 people | $203,520 |
These are selected HPD limits effective **June 1, 2026**, as listed on November 12, 2026. HPD publishes the full table for households of up to eight people. [HPD]
**Take the approved homebuyer education course and work with a participating lender.** Start with an HPD-approved housing counseling agency. The counselor can review your documents, guide you through the course and refer you to a participating lender for mortgage preapproval. The program requires a qualifying first mortgage, and the HomeFirst servicer still reviews the property and complete application before issuing a loan approval. [HPD]
What the price cap and inspection mean for your search
HomeFirst can help you buy a **condo, co-op or one- to four-family home** in any of the five boroughs. HPD’s published limits for existing one-unit homes, effective **December 1, 2025** and listed as of November 12, 2026, are **$661,000 in Manhattan, the Bronx and Staten Island**, **$732,000 in Brooklyn** and **$699,000 in Queens**. Two- to four-unit homes have separate limits. Newly built or rehabilitated homes have their own limits, and HPD identifies possible exceptions for certain areas. Ask your counselor to check the exact address and property type before you build an offer around the assistance. [HPD]
The property must also **pass a Housing Quality Standards inspection before purchase**. The buyer pays for the inspection, and the inspector completes HPD’s report. If a home needs repairs to pass, work out who will handle them and how that affects the closing schedule, since the assistance cannot fund rehabilitation. [HPD]
What a $450,000 co-op could require in cash
Suppose you find a **$450,000 co-op**. The HomeFirst formula sets a maximum of **$90,000** for that price. You must still put **at least $13,500 of your own funds** toward the down payment or contract deposit, based on the program’s 3% minimum. Those figures tell you the program ceiling and minimum personal contribution. To estimate what you’ll actually need, ask your lender and attorney to account for the deposit due at signing, the building’s financing requirements, closing costs and any reserves you’ll need to show after closing. [nyc.gov]
**Syd’s Field Note.** Ask for a cash breakdown by date. How much do you need when you sign, how much do you need at closing, and how much should you have left afterward? In a co-op search, ask about the building’s down payment and reserve requirements early. A home can fit the program’s price limit and still require more cash up front than you’ve set aside.
What you commit to after closing
The home must remain your **primary residence** during the required occupancy period. HPD generally requires **10 years for loans of $40,000 or less** and **15 years for larger loans**. **City-funded loans carry a 15-year requirement at any loan amount.** An early sale, transfer or move can trigger repayment, and refinancing may also have repayment consequences. If a move or refinance is plausible during that period, ask the servicer and your attorney to walk through what your loan documents would require in each case. [HPD]
Four steps to take before you make an offer
1. **Contact an HPD-approved counselor.** Review your household income, assets, ownership history and savings, then enroll in the approved education course. [HPD]
2. **Speak with a participating lender.** Get preapproved and ask for a written estimate of your monthly payment and cash needs. Include the program’s processing fee in your budget. The term sheet linked by HPD lists **$250 at application and $1,400 at closing**. Confirm the amounts with your counselor. [nyc.gov]
3. **Check the property and building.** Have your counselor confirm the applicable price limit and flag any questions about the address. For a condo or co-op, have your lender and attorney check building financing requirements before you commit.
4. **Coordinate the contract and inspection.** Make sure your attorney, lender and counselor know you plan to use HomeFirst. Ask your attorney how the deposit, financing provisions and inspection timing fit together before you sign.
If you’re planning your first NYC purchase, I can help you turn the price range your lender gives you into a search that accounts for monthly building charges and the cash you’ll need along the way.
**Sydney Harewood**
Licensed Real Estate Salesperson · FIND Real Estate
646-535-3819 · [email protected]
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We hope you found this information helpful. If you have any other questions or need more details, feel free to contact us.
