Key takeaways
- The State of New York Mortgage Agency (SONYMA) offers 30-year fixed mortgages with down payments as low as 3% through participating lenders.
- Its Down Payment Assistance Loan (DPAL) is 0% interest, needs no monthly payments and is forgiven after 10 years; it’s the greater of 3% of the price (up to $15,000) or $3,000.
- DPAL PLUS 2026 offers up to $30,000 to buyers earning up to 60% of area median income, while funds last.
- You’ll still put in at least 1% of the price from your own money (3% for co-ops and 3–4 family homes).
New York’s statewide help for first-time buyers comes from SONYMA, part of New York State Homes and Community Renewal. SONYMA loans are 30-year fixed mortgages offered through approved banks and mortgage lenders, and most can be paired with a forgivable down payment loan. They also work for property types many programs skip, including co-ops and 2–4 family homes.
Example: on a $400,000 home, DPAL provides 3%, or $12,000, with nothing to repay if you stay 10 years. If you sell after three years, the repayable amount has dropped by 36/120, to $8,400.
SONYMA programs at a glance
Rates and terms checked: Nov. 11, 2026. They change often, so confirm with the provider before you apply. How we review lenders
| Program | What it offers | Who it’s for |
|---|---|---|
| Achieving the Dream | SONYMA’s lowest rates, low fees, down payment from 3% | Lower-income first-time buyers (veterans and Target Area buyers can be exempt from the first-time rule) |
| Low Interest Rate Program | 30-year fixed rate, down payment from 3%; 1–4 family homes, condos, co-ops and manufactured homes | First-time buyers under regional income limits (same exemptions) |
| Conventional Plus | Conventional loan with down payment assistance that can also cover closing costs | First-time and repeat buyers with income below 80% of area median |
| FHA Plus | FHA loan with down payment assistance | First-time and repeat buyers |
| Graduate to Homeownership | Low-rate loan for recent college graduates | Recent graduates buying in eligible communities |
| Homes for Veterans | Low-interest loan | Veterans and service members |
Down Payment Assistance Loan (DPAL)
- Amount: the greater of 3% of the purchase price (capped at $15,000) or $3,000, and no more than your actual down payment and closing costs. Minimum $1,000.
- Cost: 0% interest and no monthly payments. Most SONYMA mortgages with a DPAL carry a rate 0.40 percentage point higher than without one (not for Graduate to Homeownership, Homes for Veterans or ENERGY STAR loans).
- Forgiveness: forgiven after 10 years. If you sell or refinance sooner, the amount you owe drops by 1/120 for each month you’ve lived in the home, and any shortfall after the sale is forgiven.
- Your contribution: at least 1% of the property value in cash (3% for co-ops and 3–4 family homes).
Weigh the rate: the 0.40-point higher rate lasts for the life of the loan. On a $388,000 loan, that adds roughly $100 a month, or more than $12,000 over 10 years, which is about what a $12,000 DPAL covers. If you can afford the down payment without it, compare both options in the mortgage calculator.
DPAL PLUS 2026
For buyers with household income at or below 60% of area median income, DPAL PLUS 2026 can cover the down payment, closing costs and single-premium mortgage insurance, up to $30,000, until the first mortgage reaches 80% of the home’s value. It’s first-come, first-served and ends when funds run out, so ask a lender about availability early.
Who qualifies
- First-time buyer: generally no home owned in the past three years for Achieving the Dream and the Low Interest Rate Program; veterans and buyers in designated Target Areas are exempt. Conventional Plus and FHA Plus are open to repeat buyers.
- Income and price limits: vary by program, property type and region.
- Credit: good credit is required; lenders set the specific minimum score.
- Counseling: SONYMA offers homebuyer counseling through nonprofit agencies, including online classes.
- Owner-occupied home in New York State.
How to apply
- Check your budget with the home affordability calculator, including property taxes and any co-op or condo fees.
- Find a SONYMA participating lender (not every lender offers DPAL).
- Take homebuyer counseling.
- Get preapproved and compare a SONYMA loan with and without DPAL.
- Estimate your cash to close with the closing cost calculator; New York closing costs can be higher than average.
Other options
New York City and many counties run their own down payment programs, some of which can be combined with SONYMA loans. Compare standard FHA, VA, USDA and 3%-down conventional loans in our first-time homebuyer programs guide and see FHA vs. conventional.
First-time home buyer programs in other states
Frequently asked questions
How much is SONYMA down payment assistance?
The DPAL is the greater of 3% of the purchase price, capped at $15,000, or $3,000. DPAL PLUS 2026 offers up to $30,000 for households at or below 60% of area median income, while funds last.
Do I have to repay the SONYMA DPAL?
Not if you keep the home for 10 years. If you sell or refinance sooner, you repay a portion that shrinks each month you live there.
Can I use SONYMA to buy a co-op?
Yes. SONYMA programs and DPAL can be used for co-ops, though you’ll need to put in at least 3% of your own money.
Do I have to be a first-time buyer?
For Achieving the Dream and the Low Interest Rate Program, yes, unless you’re an eligible veteran or buying in a Target Area. Conventional Plus and FHA Plus are open to previous homeowners.
Sources: New York State Homes and Community Renewal (SONYMA programs and Down Payment Assistance Loan pages). Program terms checked Nov. 11, 2026; rates, limits and fund availability change, so confirm with a SONYMA participating lender. Payment estimate calculated by FinInfoBlog. This article is for educational purposes and isn’t financial advice.
Written by Chanchala
Founder & Lead Writer · B.Sc. Mathematics (Honors) · 9 years in banking & lending
Chanchala is the founder and lead writer of FinInfoBlog. She holds a B.Sc. in Mathematics (Honors) and has 9 years of experience in banking and lending. She writes plain-English guides on savings, CDs, loans, credit and personal finance for U.S. readers, and makes sure every example shows the math behind the money decision. How we research and fact-check.