You’re standing in a cramped Queens apartment, staring at a Zillow listing for a modest two-family in East New York. The price tag is eye-watering. You’ve got the job. You’ve got the credit. But that 20% down payment? It feels like a fantasy. Honestly, for most New Yorkers, saving $100,000 while paying $3,000 in rent is basically a math problem designed to make you fail.
But here’s the thing. There is a "cheat code" that very few people actually use correctly. It’s called the HomeFirst Down Payment Assistance Program.
Most people think it’s just a tiny $5,000 grant or some impossible-to-get lottery. It’s not. We’re talking about up to **$100,000** in a forgivable loan. Yes, six figures. But if you don't follow the very specific NYC Department of Housing Preservation and Development (HPD) rules to the letter, you’ll get rejected before you even see a lender.
✨ Don't miss: How Much Is 1 US Dollar in Korea? What Most People Get Wrong
The $100,000 Reality Check
Let’s get the big numbers out of the way. The HomeFirst Down Payment Assistance Program provides a 0% interest loan that can cover up to 20% of your home's purchase price, capped at $100,000.
Think about that.
On a $500,000 condo, that’s your entire 20% down payment. Suddenly, you aren't just "trying" to buy; you're a serious buyer with a massive chunk of equity on day one. But it isn't "free" money in the sense that you can just take it and flip the house in two years.
It’s a forgivable loan.
If your loan is $40,000 or less, you have to live in that home as your primary residence for 10 years. If it’s more than $40,000 (which it usually is these days), that residency requirement jumps to 15 years. If you move out, sell, or refinance for cash-out before that clock hits zero, the city wants their money back. Usually, they’ll start forgiving it in chunks after year six—10% of the balance drops off every year—but you’ve gotta stay put to win.
Who Actually Qualifies for HomeFirst?
I've seen so many people get excited only to realize they make $2,000 too much or haven't lived in the city long enough. The eligibility is strict.
First, you have to be a first-time homebuyer. In the eyes of HPD, that means you haven't owned a primary residence in the last three years. If you owned a place in Florida five years ago and sold it, you’re good. If you're a veteran, sometimes those rules are even more flexible.
Then there’s the income cap.
🔗 Read more: 34 Pounds in Dollars: Why the Exchange Rate Isn't Just a Number
As of late 2025 and heading into 2026, you can’t make more than 120% of the Area Median Income (AMI). For a single person, that’s around $136,080. For a family of four, it’s roughly $194,400.
- 1 Person: $136,080
- 2 People: $155,520
- 3 People: $174,960
- 4 People: $194,400
You also need your own "skin in the game." The program requires you to contribute 3% of the purchase price yourself. And at least 1% of that must come from your own hard-earned savings. No "gift letters" for that 1%. The city wants to see that you’ve actually saved something.
The Education Loophole
You can't just call a bank and ask for the HomeFirst money. You have to go through an HPD-approved counseling agency first. This is where most people mess up. They find a house, fall in love, and then look for the grant.
Wrong.
You need to take a homebuyer education course and get a Certificate of Eligibility before you even start shopping. Agencies like NHSNYC or Neighborhood Housing Services of Staten Island are the gatekeepers here. They'll check your pay stubs, your taxes, and your credit (you usually need at least a 620). Only after they give you that certificate can you go to a participating lender like Amalgamated Bank or M&T Bank to get your mortgage.
The Property Trap: What You Can Actually Buy
Don't go looking at $2 million brownstones in Park Slope. HomeFirst has "purchase price limits" based on HUD guidelines.
If you're buying a single-family home in the Bronx or Manhattan, the limit is often around $636,000. In Brooklyn (Kings County), it’s a bit higher, near $712,000. These numbers shift slightly every year, but the core message is: this is for moderate, middle-class housing.
The program covers:
- 1-4 family houses
- Condos
- Co-ops (Yes, even the notoriously picky ones)
But there’s a catch with the physical house itself. It has to pass a Housing Quality Standards (HQS) inspection. If the house has peeling lead paint, a crumbling roof, or "DIY" electrical work that isn't up to code, the city won't let you use the HomeFirst funds. This can be a nightmare in a competitive market because sellers hate waiting for extra inspections. You need a real estate agent who knows how to pitch this to a seller so they don't get spooked.
Why Some Lenders Won't Talk About It
Kinda weird, right? You’d think every bank would want you to have an extra $100,000.
But HomeFirst adds paperwork. It adds a "second lien" on the property. Not every lender is "participating." You can't just go to a random online mortgage site and expect them to coordinate with NYC's HPD. You have to use a bank on the official list—names like Chase, Popular Bank, and Ridgewood Savings.
Also, keep in mind that some banks might charge a slightly higher interest rate if you’re using down payment assistance. It’s a trade-off. You’re getting $100,000 for free, but you might pay 0.25% more on your monthly mortgage. Honestly, the math usually favors taking the grant, but you’ve gotta run the numbers for your specific situation.
The Repayment Nightmare (How to Avoid It)
I've talked to people who got the grant, lived in the house for seven years, and then had to move for a job. They were shocked when they had to pay back a huge chunk of that "free" money.
If you take a $100,000 loan, and you leave at year seven, you don't just walk away. Because it’s a 15-year term, and forgiveness usually doesn't start until after year six, you might still owe $80,000 or $90,000 back to the city.
Pro-tip: If you think there’s a chance you’ll leave New York in the next decade, HomeFirst might be a golden cage. But if you’re a lifer? It’s the best deal in town.
🔗 Read more: ¿Cuánto está el dólar en México hoy? Lo que los bancos no te dicen sobre el tipo de cambio
Actionable Steps to Take Right Now
- Stop Zillow-scrolling for ten minutes. Go to the NYC HPD website and find the list of approved counseling agencies.
- Book the class. These classes fill up months in advance. You can't get the money without the certificate, and you can't get the certificate without the class.
- Check your debt-to-income (DTI). Even with $100k from the city, a bank won't give you a mortgage if your car payment and student loans eat up 50% of your income. Most lenders want your total debt under 43-45% of your gross pay.
- Save that 1%. If you’re looking at a $600,000 condo, you need $6,000 of your own money in a bank account. No cash under the mattress. The city needs to see the paper trail.
- Interview a "Participating" Lender. Call a loan officer at a bank on the HPD list. Ask them point-blank: "How many HomeFirst deals have you closed in the last 12 months?" If they stutter, find a different officer. You want someone who knows the HPD paperwork like the back of their hand.
The HomeFirst Down Payment Assistance Program isn't a myth, but it’s also not a walk in the park. It’s a bureaucratic marathon. But for $100,000? It’s a marathon worth running.