First-Time Homebuyer Down Payment Assistance Program

What is First-Time Homebuyer Down Payment Assistance Program?

First-Time Homebuyer Down Payment Assistance Program is a forgivable loan for homebuyers in New Rochelle, New York.

• The City of New Rochelle First-Time Homebuyer Down Payment Assistance Program provides eligible income-qualified first-time buyers with up to 19% of the purchase price of an eligible single-family home as a zero-interest forgivable second-mortgage loan, used for down payment and closing costs. Funded through a combination of HUD HOME federal funds and the City's Affordable Housing Fund, the program is administered for the City by Westchester Residential Opportunities (WRO). Buyers must be current New Rochelle residents, complete HUD-approved homebuyer education, contribute at least 1% of their own funds, and remain in the home as their primary residence for five (5) years, after which the loan is forgiven.
• Up to 19% of the purchase price of an eligible single-family home as a zero-interest forgivable second-mortgage loan toward down payment and closing costs. The loan is forgiven after the buyer occupies the property as a principal residence for five (5) years. Maximum eligible purchase price ranges from approximately $594,000-$601,000 based on the City's published HUD HOME 95%-of-median-sales-price limits for Westchester County.
• Funding comes from HOME, Local Government, and Federal.

How much assistance does it provide?

First-Time Homebuyer Down Payment Assistance Program provides assistance worth 19% of the purchase price, as set by the program.

• Buyer contribution: Minimum 1% of purchase price from buyer'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 — the administering agency determines any individual award.

Do you have to pay it back?

First-Time Homebuyer Down Payment Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgivable second mortgage and loan is forgiven in full after 5 years of owner-occupancy as primary residence. Sale, transfer, refinance with cash-out, or loss of owner-occupancy during the 5-year period triggers repayment of the unforgiven balance to the City of New Rochelle.
• The assistance is recorded in 2 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

First-Time Homebuyer Down Payment Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

First-Time Homebuyer Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income must be between $40,000 and 80% of HUD Area Median Income for Westchester County, adjusted by household size. 2025 80% AMI limits range approximately: 1-person $76,300; 2-person $87,200; 3-person $98,100; 4-person $108,950; 5-person $117,700; 6-person $126,400; 7-person $135,100; 8-person $136,250.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• 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?

First-Time Homebuyer Down Payment Assistance Program caps the purchase price at $601,000.

• Eligible property types include Single-family detached, Condominium, and Townhouse.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

First-Time Homebuyer Down Payment Assistance Program serves buyers purchasing in New Rochelle, New York.

How do you apply?

Applications for First-Time Homebuyer Down Payment Assistance Program go through the administering agency, 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 Westchester Residential Opportunities (WRO) - HUD-approved housing counseling agency; HUD-approved homebuyer education class required prior to closing..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served via Westchester Residential Opportunities (WRO) once the buyer is under contract; applicant must complete intake, homebuyer education, and submit full application package., 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.