NYC Affordability

What HomeFirst is

HomeFirst is run by the NYC Department of Housing Preservation and Development (HPD). It gives qualified first-time buyers up to $100,000 toward the down payment or closing costs on a one- to four-family home, a condo, or a co-op anywhere in the five boroughs. Technically it’s a loan: 0% interest, secured by an enforcement mortgage (or, for a co-op, a UCC filing) recorded at closing. In practice it’s forgivable. Stay in the home for the required period and follow the rules, and you don’t pay it back.

How much you can get

Per HPD’s term sheet (dated May 11, 2026), the loan is the lesser of 20% of the purchase price or $100,000. The math means the full $100,000 only kicks in at a purchase price of $500,000 or more (calculated: $100,000 ÷ 20%). It can go toward the down payment or customary closing costs such as title insurance and attorney fees, but not toward renovation. For a sense of what those closing costs run, see our buyer closing costs guide.

Who qualifies

According to HPD’s program page and term sheet, a buyer must:

• Be a first-time homebuyer, meaning you haven’t owned a home in the past three years.
• Have household income at or below 120% of AMI. (Not 80%; HomeFirst is aimed at low- and moderate-income buyers.)
• Complete a homebuyer education course with an HPD-approved housing counseling agency, then apply through that agency.
• Put in at least 3% of the purchase price from your own funds, as a down payment or contract deposit. No more than half of your down payment contribution can be a gift.
• Keep household assets at or below your 120% AMI income limit. That counts savings, checking, CDs, stocks, bonds, and your down payment deposit, but not retirement or college savings accounts.
• Use a fixed-rate, fully amortizing mortgage of 15 to 40 years from an HPD-approved participating lender. Mortgage brokers aren’t allowed, and neither are interest-only or low- or no-doc loans.
• Meet the underwriting caps: first-mortgage LTV of 95% or less (VA loans excepted), combined LTV of 115% or less, housing expense under 50% of income, and debt-to-income under 55%. The minimum credit score is 620 (580 with an FHA-approved mortgage).
• Buy and live in an eligible property: a 1–4 family home, condo, or co-op in NYC that passes HPD’s housing quality inspection. You can’t buy from a relative.

There’s also a purchase price cap. For existing homes, HPD’s page lists one-unit limits (effective December 1, 2025, until HUD issues new ones) of $661,000 in the Bronx, Manhattan, and Staten Island, $699,000 in Queens, and $732,000 in Brooklyn, with higher limits for two- to four-unit buildings. HPD notes that properties in designated “Exception Areas” may exceed these, and new construction has its own limits.

The 2026 income limits

HPD’s HomeFirst page lists these maximum household incomes at 120% AMI, effective June 1, 2026:

Household size	Max income (120% AMI)
1	$142,560
2	$162,840
3	$183,240
4	$203,520
5	$219,840
6	$236,160
7	$252,480
8	$268,680

One thing to watch: these come from HPD’s own 2026 New York City Area AMI chart, where 100% AMI for a family of four is $169,600. Every column on that chart is the 100% row scaled, so 120% AMI is simply 1.2 times it. Our AMI guide explains the chart, and the Affordable Housing Finder will give you your AMI percentage. If HPD posts a new chart, HPD’s current numbers are the ones that count.

How long you have to stay

The forgiveness clock depends on loan size. Per the term sheet:

• $40,000 or less: 10-year owner-occupancy period.
• More than $40,000: 15 years.
• City-funded loans: 15 years regardless of amount. (HPD says city capital funds only back loans of $50,000 or more.)

“Owner-occupancy” is strict: the home must be your primary residence, where you sleep at least 270 days a year (active military duty excepted), and the address on your tax returns, voter registration, and license. You can’t rent out your own unit, though in a two- to four-family house you can rent the other units.

Move out and you owe the whole loan. Sell or transfer during the occupancy period and you owe the loan, or the lesser of your net proceeds; starting at the sixth anniversary, that amount shrinks by 20% a year for loans of $40,000 or less, or 10% a year for larger ones. Refinance and you pay HPD half of any refinancing proceeds above your original purchase price. Whatever’s due is due in full, not in installments.

Worked example

A hypothetical household of three earning $150,000, first-time buyers, looking at a $420,000 co-op in Queens.

• Income: HPD’s 120% AMI limit for three people is $183,240. $150,000 is under it. On HPD’s chart, that’s about 98.2% AMI (calculated: $150,000 ÷ $152,700).
• Price cap: $420,000 is under the Queens one-unit limit of $699,000.
• Loan size: the lesser of 20% × $420,000 = $84,000, or $100,000. So $84,000.
• Their own money: at least 3% × $420,000 = $12,600.
• First mortgage: $420,000 − $84,000 − $12,600 = $323,400, a calculated LTV of 77%, and combined LTV of 97% once the HomeFirst loan is included. Both are under the caps.
• Strings: $84,000 is over $40,000, so they’re committing to 15 years of living there.
• Assets: their liquid savings must stay at or under $183,240.

Two practical notes. A co-op board can set its own financing and down payment standards on top of HomeFirst’s (see our co-op board approval guide). And the customary NYC good-faith deposit at contract signing is typically larger than 3%, so ask your counselor and attorney early how the deposit and the HomeFirst funds will line up.

How to apply

The order HPD lays out: contact an HPD-approved housing counseling agency in your borough (HPD lists them on the HomeFirst page), take the homebuyer education class, and get your certificate. Take that to a participating lender for pre-approval, find a home, hire a real estate lawyer, and negotiate a contract of sale. Your counselor submits the full application to HPD’s loan servicer, either Neighborhood Housing Services of NYC or the Center for NYC Neighborhoods. There’s a nonrefundable $1,500 processing fee: $250 when you apply and $1,250 at closing. Once the servicer issues a Notice of Loan Approval, you have 10 days to sign and return it, and the approval expires 120 days after it’s issued.

If you’re still renting and a long way from buying, our Rent Freeze Program guide covers the city’s main renter-side benefit for seniors and tenants with disabilities.

Limits and terms change, sometimes mid-year. Confirm everything with HPD (HomeFirst@hpd.nyc.gov) or an approved counseling agency before you sign a contract. This guide is general information, not legal or financial advice.