City of New Rochelle First-Time Home Buyer Down Payment Assistance Program (DPAP)

What is City of New Rochelle First-Time Home Buyer Down Payment Assistance Program (DPAP)?

City of New Rochelle First-Time Home Buyer Down Payment Assistance Program (DPAP) is a forgivable loan for homebuyers in New Rochelle, New York, administered by City of New Rochelle Department of Development, Office of Housing (operated by Westchester Residential Opportunities, Inc.).

• The City of New Rochelle DPAP provides eligible first-time, low- and moderate-income homebuyers a zero-interest deferred loan, forgiven after 5 years, of up to 19% (not to exceed $125,590) of the purchase price of a single-family home in New Rochelle, applied toward the down payment. Funded by HUD's HOME Program and the City's Affordable Housing Fund. Expanded to include New Rochelle workers and former residents in addition to current residents. Does not fund closing costs.
• Zero-interest deferred loan up to 19% of purchase price (max $125,590) toward down payment; forgiven after 5 years.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from HUD HOME Program; City of New Rochelle Affordable Housing Fund.

How much assistance does it provide?

City of New Rochelle First-Time Home Buyer Down Payment Assistance Program (DPAP) offers up to $125,590 in assistance.

• Buyer contribution: At least 1% of purchase price from applicant's own funds.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — City of New Rochelle Department of Development, Office of Housing (operated by Westchester Residential Opportunities, Inc.) determines any individual award.

Do you have to pay it back?

City of New Rochelle First-Time Home Buyer Down Payment Assistance Program (DPAP) is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale, transfer, lease/rent, deed/convey, or loss of owner-occupancy within 5 years; recapture declines 20%/year; $5,000 default fee if occupancy ceases.
• The assistance is recorded in subordinate position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of New Rochelle First-Time Home Buyer Down Payment Assistance Program (DPAP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

City of New Rochelle First-Time Home Buyer Down Payment Assistance Program (DPAP) limits household income to 80% of the area median income, which varies by county and household size.

• 80% AMI (Westchester, June 1, 2026): 1=$88,100; 2=$100,700; 3=$113,300; 4=$125,850; 5=$135,950; 6=$146,000. Minimum income $40,000 all sizes.
• 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?

City of New Rochelle First-Time Home Buyer Down Payment Assistance Program (DPAP) caps the purchase price at $661,000.

• Eligible property types include single_family, condo, and cooperative.
• New construction is eligible.

Is there eligibility for specific groups?

City of New Rochelle First-Time Home Buyer Down Payment Assistance Program (DPAP) names veterans among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

City of New Rochelle First-Time Home Buyer Down Payment Assistance Program (DPAP) is a federal program, so it is not limited to New York.

How do you apply?

Applications for City of New Rochelle First-Time Home Buyer Down Payment Assistance Program (DPAP) go through City of New Rochelle Department of Development, Office of Housing (operated by Westchester Residential Opportunities, Inc.), 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 HUD-certified not-for-profit mortgage counseling agencies (one-on-one mortgage counseling required).

2. 2

   Contact City of New Rochelle Department of Development, Office of Housing (operated by Westchester Residential Opportunities, Inc.) to reserve funds

   Funds are reserved through Purchaser Certificate; 90 days to executed contract (300 days for new construction); first-come, first-served waiting list., 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.