Homebuyer Dream Program (HDP)

What is Homebuyer Dream Program (HDP)?

Homebuyer Dream Program (HDP) is a forgivable loan for homebuyers in Statewide County, New Jersey, administered by Federal Home Loan Bank of New York (via participating member lenders).

• A Homeownership Set-Aside grant from FHLBNY, delivered through member lenders, providing up to $30,000 toward down payment, closing costs, and counseling for first-time buyers <= 80% AMI. 2026 round opened Feb 9, 2026 ($31.67M) through Nov 27, 2026 or until exhausted. 5-year retention; counseling and $1,000 buyer contribution required.
• Up to $30,000 for down payment and closing costs.
• No repayment if 5-year retention met.
• Statewide in NJ.
• Layerable with HDP Wealth Builder.
• Funding comes from FHLBNY Affordable Housing Program / Homeownership Set-Aside (2026 round $31,670,000).

How much assistance does it provide?

Homebuyer Dream Program (HDP) offers up to $30,000 in assistance.

• Buyer contribution: Minimum $1,000 total buyer contribution.
• Amounts are the program's published maximums, not an offer — Federal Home Loan Bank of New York (via participating member lenders) determines any individual award.

Do you have to pay it back?

Homebuyer Dream Program (HDP) is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Pro-rata recapture if sold, cash-out refinanced, or ceases to be owner-occupied within the 5-year retention period.
• The assistance is recorded in Subordinate (retention agreement) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Homebuyer Dream Program (HDP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Homebuyer Dream Program (HDP) limits household income to 80% of the area median income, which varies by county and household size.

• Household income <= 80% AMI (NY/NJ use Mortgage Revenue Bond limits; county-specific).
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Homebuyer Dream Program (HDP) can be used for Single Family, Condo, Townhouse, and 1-4 Family.

Where does it apply?

Homebuyer Dream Program (HDP) serves buyers purchasing in Statewide County, New Jersey.

How do you apply?

Applications for Homebuyer Dream Program (HDP) go through Federal Home Loan Bank of New York (via participating member lenders), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Homebuyer counseling required, coordinated via the member lender.

2. 2

   Contact Federal Home Loan Bank of New York (via participating member lenders) to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.