Category: State Programs | Published: September 11, 2025 | Reading Time: 12 minutes
Quick Summary: New York offers excellent first-time home buyer assistance through SONYMA programs providing up to $15,000 in down payment assistance, competitive interest rates, and various tax benefits. This complete guide walks you through every step with a free printable checklist.
Free New York First-Time Buyer Checklist
Download our comprehensive printable checklist to track your progress through every step of the New York first-time home buyer process.
The flagship program administered by State of New York Mortgage Agency providing down payment and closing cost assistance.
Down payment assistance: Up to $15,000 for qualified buyers
Interest rate: Below-market fixed rates
Loan terms: 30-year fixed rate mortgages
Assistance structure: Deferred payment loan at 0% interest
SONYMA Low Interest Rate Program
Reduced rates
Traditional fixed-rate mortgages with below-market interest rates for qualified first-time buyers.
Loan types: 30-year fixed rate
Down payment: As low as 3%
Credit score: Minimum 620
Available statewide: All counties except NYC
Achievement Program
Enhanced benefits
Enhanced program offering additional benefits for moderate-income borrowers in targeted areas.
Down payment: As low as 3%
Closing cost assistance: Up to 3% of loan amount
Credit score: Minimum 580
Geographic restrictions: Targeted counties and municipalities
Step-by-Step Process for New York First-Time Buyers
1
Determine Your Eligibility
First-Time Buyer Definition:
Haven't owned a home in the past 3 years
Single parent who owned with former spouse only
Displaced homemaker
Individual who owned non-traditional property only
Income Limits (2025):
Nassau County: Up to $153,360 (1-person) / $219,120 (4-person)
Suffolk County: Up to $153,360 (1-person) / $219,120 (4-person)
Westchester County: Up to $153,360 (1-person) / $219,120 (4-person)
Erie County (Buffalo): Up to $97,440 (1-person) / $139,200 (4-person)
2
Complete Homebuyer Education
Required for all SONYMA programs:
Choose HUD-approved counseling agency
Complete 8-hour homebuyer education course
Obtain certificate of completion
Course must be completed within 2 years of application
Tip: eHome America and Framework offer free online courses approved for SONYMA programs. Budget 2-3 days to complete the full course.
3
Gather Required Documents
Income Documentation:
Pay stubs for past 30 days
W-2 forms for past 2 years
Tax returns for past 2 years
Bank statements for past 2 months
Employment verification letter
Asset Documentation:
Savings account statements
Checking account statements
Investment account statements
Retirement account statements
Gift letter (if applicable)
4
Find SONYMA-Approved Lender
Use SONYMA's Lender Directory:
Visit SONYMA.org lender directory
Search by your county or region
Contact multiple lenders for rate quotes
Verify lender offers your desired program
Important: Only SONYMA-approved lenders can originate SONYMA loans. Working with non-approved lenders will disqualify you from the programs.
5
Apply for Pre-Approval
Submit Complete Application Package:
SONYMA loan application
Down payment assistance application
All required documentation
Homebuyer education certificate
Pre-approval fee (varies by lender)
Timeline: Pre-approval typically takes 3-5 business days
6
Shop for Homes
Property Requirements:
Must be your primary residence
Single-family homes, condos, townhomes eligible
Property must meet SONYMA inspection standards
Purchase price must not exceed county limits
2025 County Loan Limits:
Nassau County: $766,550
Suffolk County: $766,550
Westchester County: $766,550
Erie County: $498,257
Other counties: $498,257
7
Submit Purchase Contract
After Offer Acceptance:
Submit signed purchase contract to lender
Order home inspection and appraisal
Finalize loan application
Provide any additional documentation requested
Timeline: Standard 30-45 day closing period
8
Complete Final Loan Processing
Underwriting Process:
Lender submits file to SONYMA for approval
Final income and asset verification
Property appraisal review
Clear any final conditions
Timeline: 7-14 days for final approval
9
Close on Your Home
Closing Day Tasks:
Review all closing documents
Sign loan documents and deed
Receive keys to your new home
Down payment assistance funds applied at closing
Pro Tip: Bring a cashier's check for any down payment amount not covered by assistance programs. Personal checks are typically not accepted at closing.
Printable New York First-Time Buyer Checklist
New York First-Time Home Buyer Checklist
Pre-Application Preparation
Verify first-time buyer eligibility (no home ownership in past 3 years)
Check income limits for your county
Complete HUD-approved homebuyer education course
Obtain homebuyer education certificate
Document Collection
Pay stubs for past 30 days
W-2 forms for past 2 years
Tax returns for past 2 years (complete with schedules)
Bank statements for past 2 months (all accounts)
Employment verification letter
Social Security card and driver's license
Investment/retirement account statements
Gift letter and gift funds documentation (if applicable)
Lender Selection & Pre-Approval
Research SONYMA-approved lenders in your area
Contact multiple lenders for rate quotes
Submit complete loan application
Apply for down payment assistance
Receive pre-approval letter
Home Shopping & Purchase
Find qualified real estate agent
Verify properties meet SONYMA requirements
Confirm purchase price within county limits
Submit purchase offer and negotiate terms
Order home inspection
Review inspection report and negotiate repairs
Loan Processing & Closing
Submit signed purchase contract to lender
Complete loan application and provide additional docs
Review appraisal report
Clear all underwriting conditions
Schedule final walk-through
Review closing disclosure
Prepare cashier's check for closing costs
Attend closing and sign documents
Post-Closing
Set up homeowner's insurance
Transfer utilities to your name
Register for loan servicing account
Keep all loan documents for tax purposes
New York Tax Benefits for First-Time Buyers
Mortgage Credit Certificate (MCC) Program
Annual Tax Credit: Available in select counties, receive up to 20% of your mortgage interest as a federal tax credit each year, with a maximum of $2,000 annually. Combined with state benefits, this provides significant savings.
Property Tax Benefits
STAR exemption reduces school tax burden
Basic STAR provides up to $30,000 exemption on assessed value
Enhanced STAR for seniors provides additional savings
Mortgage interest deduction on federal and state taxes
Important New York Contacts
State of New York Mortgage Agency (SONYMA)
Phone: (800) 382-4663
Website: SONYMA.org
Hours: Monday-Friday, 8:30 AM - 4:30 PM EST
Framework (Homebuyer Education)
Phone: (518) 434-1730
Website: FrameworkCNY.org
Service: HUD-approved homebuyer education
❓ Frequently Asked Questions
How long does the SONYMA loan process take?
From application to closing typically takes 30-45 days, similar to conventional loans. Allow extra time for homebuyer education completion if not already done.
Can I use SONYMA programs for condominiums?
Yes, condos are eligible if they meet SONYMA requirements and are located in approved developments. Your lender can verify eligibility.
Is the down payment assistance forgivable?
The assistance is typically structured as a deferred payment loan at 0% interest that becomes due when you sell, refinance, or transfer the property.
Are there credit score requirements?
Minimum credit scores vary by program: typically 620 for most SONYMA programs, 580 for Achievement Program. Higher scores may qualify for better rates.
Ready to Calculate Your New York Mortgage?
Use our advanced mortgage calculator to estimate your monthly payments with current New York interest rates and down payment assistance.
New York's first-time home buyer programs provide excellent assistance to help you achieve homeownership. SONYMA programs can provide up to $15,000 in down payment assistance, while offering below-market interest rates and flexible terms.
Success with these programs requires careful preparation, especially completing homebuyer education early and working with SONYMA-approved lenders. Use the printable checklist above to stay organized throughout your home buying journey.
Remember that program requirements and benefits can change, so always verify current details with SONYMA or your approved lender before making decisions.
Need help with your mortgage calculations?
Our mortgage calculator includes New York-specific features to help you plan your home purchase with state assistance programs.