HomeFirst Down Payment Assistance Program

HomeFirst has resumed the acceptance of applications as of March 4, 2024.

About HomeFirst

The HomeFirst Down Payment Assistance Program provides qualified first-time homebuyers with up to $100,000 toward the down payment or closing costs on a 1-4 family home, a condominium, or a cooperative in one of the five boroughs of New York City.

• HomeFirst term sheet
• HomeFirst brochure

Program Eligibility

A prospective homebuyer must:

• Be a first-time homebuyer
• Complete a homebuyer education course taught by an HPD-approved counseling agency
• Work with an HPD approved Housing Counseling Agency to complete a 2024 HomeFirst Loan Application (Required documentation can be found here).
• Have their own savings to contribute to the down payment or closing costs
• Meet program income eligibility requirements
• Make a minimum down payment of 3% of the purchase price towards the home purchase.
• Purchase a 1-4 unit family home, a condominium, or a cooperative for owner-occupancy in one of the five boroughs of New York City
• Pass a Housing Quality Standards (HQS) inspection before purchase
• Live in the home for at least:
  • 10 years if the loan received is less than or equal to $40,000
  • 15 years if the loan is greater than $40,000
• Have a maximum household income up to 80% AMI:

HOME Purchase Price Limits for Existing Homes*

^{Applicant must purchase an existing home at or below 95% of the HUD purchase price limits:}

Process

Community-based counseling agencies certified by HUD and approved by HPD to participate in the HomeFirst program will promote the program through newsletters, flyers, and seminars; distribute program guidelines; and enroll consumers in Homebuyer Education classes. The counseling agencies will also certify income eligibility for the Down Payment Assistance Program, counsel consumers about program requirements, certify completion of Homebuyer Education classes, and refer consumers to participating lenders for pre-approval. Contact any one of the following HPD-approved counseling agencies.

Contact a counseling agency today!
Please reach out to one of the Counseling Agencies in your borough from the list below to start the application process.

Upon the successful completion of the Homebuyer Education class, prospective home buyers will receive a certificate that verifies their eligibility for the forgivable loan of up to $100,000 towards the down payment or closing costs on a new home. After receiving the certificate, prospective homebuyers begin the path to homeownership. 

Step 1: Present the certificate of eligibility to a participating lender for pre-approval on a mortgage loan.

Step 2: After receiving pre-approval from a participating lender, consult a reputable real estate professional to identify an affordable home.

Step 4: Hire a real estate lawyer.

Step 5: Negotiate a contract of sale with the seller.

The homebuyer education counselors will be available to assist program participants throughout the home buying process. Program participants are encouraged to take advantage of this resource.

Program Administration

Neighborhood Housing Services of New York City (NHS) administers the program on HPD's behalf. As administrator, NHS works with the homebuyer and the representative from the counseling agency to:

• Request from the homebuyer copies of:
  • Home buyer education certificate
  • HomeFirst Certificate of Eligibility
  • Bank pre-approval
  • Sales contract
• Receive the HomeFirst application
  • Review signed contract
  • Verify eligibility of property based on location and type of property
  • Verify income of mortgage applicants
  • Verify eligibility of HomeFirst applicants
  • Review pre-approval and verify lender is a participating lender
• Reserve funds for closing
• Receive copy of lender commitment letter
• Receive confirmation of closing date
• Release funds for closing