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BCNI Homebuyer Assistance Program (Downpayment Assistance)

Better Community Neighborhoods, Inc. (BCNI) · Schenectady, New York

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Assistance

10%

Of the purchase price, as the program sets it

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 5 years

What is BCNI Homebuyer Assistance Program (Downpayment Assistance)?

BCNI Homebuyer Assistance Program (Downpayment Assistance) is a forgivable loan for homebuyers in Schenectady, New York, administered by Better Community Neighborhoods, Inc. (BCNI).

  • BCNI's Homebuyer Assistance Program helps low-income, first-time homebuyers in the City of Schenectady (and Montgomery County) purchase their first home by providing downpayment and closing cost assistance for up to 10% of the purchase price, with an average grant of about $9,000 depending on the buyer's needs and the home's location. BCNI serves as the Local Program Administrator on behalf of the City of Schenectady and NYS Homes and Community Renewal. Assistance is structured as a forgivable, interest-free grant over a five-year period of affordability; if the buyer sells, moves, or stops occupying the home during that period, a pro-rated portion must be repaid with no interest.
  • Up to 10% of purchase price toward downpayment and closing costs.
  • Average grant ~$9,000.
  • Interest-free (0%).
  • Forgivable over a 5-year affordability period.
  • No repayment if owner-occupancy maintained for 5 years.
  • HUD-certified pre-purchase counseling and referrals.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from Federal and State funds awarded to BCNI on behalf of the City of Schenectady and NYS Homes and Community Renewal (HCR) (e.g., HOME/CDBG and state housing program funds).

How much assistance does it provide?

BCNI Homebuyer Assistance Program (Downpayment Assistance) provides assistance worth 10% of the purchase price, as set by the program.

  • The program can be combined with May be combined with referrals to other assistance such as the FHLBNY Homebuyer Dream Program (HDP), SONYMA mortgages, and the NYSAR Housing Opportunities Foundation grant during pre-purchase counseling.
  • Amounts are the program's published maximums, not an offer — Better Community Neighborhoods, Inc. (BCNI) determines any individual award.

Do you have to pay it back?

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

  • Repayment is triggered by If the buyer moves, sells the property, or fails to occupy the property as their primary residence during the five-year period of affordability, a pro-rated portion of the grant must be repaid with no interest.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

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

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • A completed homebuyer education course, through BCNI (HUD-certified housing counseling agency) pre-purchase counseling, or pre-purchase counseling completed at another HUD-Certified Housing Counseling Agency with verification
  • DRAFT (dpa-gap-finder 2026-06-08): pending review. Must be a first-time homebuyer with household income at or below 80% AMI (HUD income limits). Property must be in the City of Schenectady or Montgomery County, in standard condition, and pass a Certificate of Occupancy inspection, visual lead assessment, and home and asbestos inspection. Buyer must complete pre-purchase counseling through BCNI or another HUD-certified agency. UNCONFIRMED (omitted): exact assistance min/max dollar amounts (only 'up to 10%' / 'average ~$9,000' stated), annual funding cap, reservation system, lien position, min credit score, max DTI, 4-person income-limit dollar amount, max purchase price, min borrower contribution, required mortgage term/rate type, citizenship/residency, participating lenders, provider email/address, HUD AMI year. The City of Schenectady also references a separate 'Second Mortgage Program' but that program is not fully detailed on a current official City page; BCNI's program is the actively administered, fully-documented City of Schenectady DPA.

The program excludes

  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

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

  • Household income must be at or below 80% of Area Median Income (HUD income limits apply).
  • The limit applies to total household income, not only the borrower’s.
  • 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?

BCNI Homebuyer Assistance Program (Downpayment Assistance) can be used for Single Family and 2-4 Unit.

Where does it apply?

BCNI Homebuyer Assistance Program (Downpayment Assistance) is a federal program, so it is not limited to New York.

How do you apply?

Applications for BCNI Homebuyer Assistance Program (Downpayment Assistance) go through Better Community Neighborhoods, Inc. (BCNI), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through BCNI (HUD-certified housing counseling agency) pre-purchase counseling, or pre-purchase counseling completed at another HUD-Certified Housing Counseling Agency with verification.

  2. Contact Better Community Neighborhoods, Inc. (BCNI) to reserve funds

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

  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.

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BCNI Homebuyer Assistance Program (Downpayment Assistance), explained

A short, free course on BCNI Homebuyer Assistance Program (Downpayment Assistance): what it is, who it is for, how it is forgiven, where it applies and how to apply. Based on program data from July 2026. About ten minutes.

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