State of New York Mortgage Agency Down Payment Assistance Loan

Financial Assistance for Homebuyers in New York

One of the biggest financial hurdles faced by potential homeowners is the down payment and closing costs. SONYMA’s Down Payment Assistance Loan (DPAL), which is available for all buyers using a SONYMA mortgage program, can provide the initial funding borrowers need to purchase their first home.

Available Assistance

The DPAL is a zero-interest loan with no monthly payments. The entire loan is forgiven after 10 years. The minimum assistance amount is $1,000, with the maximum loan amount being 3% of the purchase price (up to $15,000) or $3,000, whichever is highest.

All or a portion of your Down Payment Assistance Loan may be required to be repaid if you sell your home or refinance your mortgage within the first 10 years of purchase. The amount subject to possible repayment will decrease by 1/120 per month each month you live in the property. In the event the proceeds from the sale of your home is not enough to pay any repayable amount, the shortage will be forgiven.

Regardless of which SONYMA program you apply for, you must make a minimum cash contribution of 1% of the value of the property (3% for cooperatives and 3- and 4-family properties).

The DPAL may only be used in conjunction with a SONYMA mortgage and may be used for any property type eligible under your chosen mortgage program, including cooperatives.

*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but State and local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price, and income limits.

Note: All figures mentioned above were accurate at the time of publication and may no longer be current. Visit the program website for updated information

Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.

FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.

Down Payment Grants in New York

Albany County Rural Housing Alliance Acquisition Grant

The ACRHA grant comes in the form of a forgivable loan, which is meant to assist with purchase and repair of a home. 51 percent of the grant must be used for rehabilitation/repair of the purchased home while the other 49 percent must be used for down payment and/or closing costs.

City of Albany Home Acquisition Program (HAP)

The City of Albany offers to its residents the Home Acquisition Program (HAP). It provides financial assistance to low income households with low annual incomes. Funds can be put towards the down payment and closing costs of the home for a first-time homebuyer who resides in the property being purchased.

First Time Home Buyer’s Program

This program is in the form of a second mortgage and provides eligible applicants with a loan of up to 10 percent of the purchase price of the property in order to meet the down payment requirements. The loan has an interest rate of 4 percent with a 5-year term.

Homebuyer Down Payment Assistance

The Homebuyer Incentive Program (HIP) grants assistance of $15,000 and $20,000 to income- eligible applicants, in order to promote homeownership in Troy for low income homebuyers. Troy Rehabilitation and Improvement Program requires that all applicants must be first time homebuyers.

Homebuyer Dream Program®

With the Federal Home Loan Bank of New York's Homebuyer Dream Program, participants can obtain a grant up to a $9,500 towards down payment and closing cost assistance to eligible first-time home buyers purchasing a home through one of their approved community- member lenders. Additionally, the program offers up to $500 towards the defrayment of homeownership counseling costs.

NY State Association of Realtors Housing Opportunities Foundation

New York State’s NYSAR Housing Opportunities Foundation, Inc. offers qualifying homebuyers the opportunity to receive a grant, which is designed to assist with closing costs and/or down payments. The Housing Opportunities Foundation Individual Grant Program is in the form of a gift . Repayment is not required.

Rensselaer County Homebuyer Program

The Troy Homebuyer Incentive Program (HIP) makes funds available for down payment and/or closing cost assistance, via the Rensselaer Country Homebuyer Program.