NYC HomeFirst Program: Step-by-Step Guide to Getting Up to $100,000 for Your Down Payment

🏡 NYC HomeFirst Program: Step-by-Step Guide to Getting Up to $100,000 for Your Down Payment (2025)

When buying your first home in New York City, the biggest challenge is often the down payment and closing costs.
The HomeFirst Down Payment Assistance Program is one of NYC’s strongest incentives, offering up to $100,000 in assistance.
Yet many first-time buyers miss out simply because they don’t know where to start, who to contact, or how the process works.

1️⃣ Eligibility Requirements — Who Can Apply?

To qualify for the HomeFirst program in 2025, you must meet the following conditions:

• First-Time Homebuyer: No home ownership in the past 3 years
• Must be purchasing a home within the five boroughs of NYC
• Property must become your primary residence
• Completion of a HUD/HPD-approved homebuyer education course
• Household income must fall within Area Median Income (AMI) limits
  (approx. $136,080 for a 1-person household; $194,400 for a family of 4)

If you qualify, you may receive up to $100,000 in assistance.

2️⃣ Full Application Process (Overview)

The overall workflow looks like this:

1. Complete a HUD/HPD homebuyer education course
2. Attend one-on-one counseling with your agency
3. Obtain Pre-Approval from an HPD-approved lender
4. Education agency + lender submit the HomeFirst application to HPD
5. After approval → house hunting → contract → closing

3️⃣ Step 1: Complete a HUD/HPD-Approved Homebuyer Education Course

HomeFirst cannot be submitted without proof of education — this is mandatory.
Your first step is enrolling in a HUD/HPD-approved homebuyer education provider.

Common agencies include:

• NHS (Neighborhood Housing Services)
• Brooklyn Neighborhood Services
• Parodneck Foundation
• Habitat for Humanity NYC

Courses typically take 6–8 hours. After completion, you receive a Homebuyer Education Certificate, which is required for the application.

4️⃣ Step 2: One-on-One Counseling & Eligibility Review

After finishing the course, you’ll meet with a counselor to review your eligibility.
During this session, they will review:

• Your credit report
• Whether your income meets AMI limits
• Your debt-to-income ratio (DTI)
• Which lenders are a good match for your profile

This counseling session is a key stage — it often determines whether you’re ready to move forward with HomeFirst.

5️⃣ Step 3: Get Pre-Approved by an HPD-Approved Lender

You can only apply through a lender approved by HPD.
Not all banks can process HomeFirst.

Common HPD-approved lenders include:

• Chase Bank
• Citi
• TD Bank
• Bank of America
• New York Community Bank

Pre-Approval is required before your HomeFirst documents can be submitted.
The lender reviews your income, assets, credit, and overall ability to qualify for a mortgage.

6️⃣ Step 4: Submitting the HomeFirst Application — Who Does What?

HomeFirst is not an online self-application program.
Your counselor and lender prepare all documents and send them directly to HPD.

7️⃣ Step 5: After Approval — Start House Hunting & Sign a Contract

Once HPD approves your application, you can begin searching for a home.
Keep in mind:

• The property must be your primary residence
• It must be located within NYC’s five boroughs
• Eligible property types include 1–4 family homes, condos, and co-ops

At closing, HomeFirst funds are applied toward your down payment and/or closing costs.

8️⃣ Required Documents Checklist

• Last 2 years of tax returns (1040 + W-2/1099)
• Recent pay stubs (2–3 months)
• Bank statements
• Government ID
• Credit report
• Homebuyer Education Certificate
• Mortgage Pre-Approval Letter

9️⃣ How Long Does Approval Take? (Timeline)

The typical timeline looks like:

• Education course: 1–2 weeks
• Counseling + document preparation: 1–3 weeks
• Lender Pre-Approval: ~1 week
• HomeFirst submission → approval: 3–8 weeks

In total, expect 6–12 weeks for full HomeFirst readiness.

🔟 Common Issues & Tips for Faster Approval

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