SONYMA Down Payment Assistance Loan (DPAL)
SONYMA Down Payment Assistance Loan (DPAL) is a forgivable loan for homebuyers in New York, administered by State of New York Mortgage Agency (SONYMA), a division of NYS Homes and Community Renewal (HCR).
The program asks for
- The home is occupied as a primary residence
- Must be used in conjunction with a SONYMA mortgage and the chosen SONYMA program's property-type rules apply (incl. cooperatives). DPAL cannot exceed actual down payment and/or closing costs. Cash back at closing not allowed (except special circumstances). SONYMA will not allow the DPAL to be subordinate to another mortgage. First-mortgage interest rate is 0.40% higher when a DPAL is attached (does NOT apply to Graduate to Homeownership, Homes for Veterans, or ENERGY STAR programs). Borrower must make a minimum cash contribution of 1% of property value (3% for cooperatives and 3- and 4-family properties). Not all participating SONYMA lenders offer DPALs. Amount is the higher of 3% of purchase price (up to $15,000) or $3,000; minimum $1,000.
- A home in New York
These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.
Where it applies
New York’s homesThe homes in New York
- 41.2% single-familysingle-family
- 5.5% townhousetownhouse
- 16.5% 2–4 units2–4 units
- 34.7% 5+ unitscondo & apartment buildings (5+ units)
- 2.2% mobile & othermobile home & other
$423,800
New York median home value
73.9%
built before 1980
U.S. Census Bureau, ACS 2024 5-year.
How to apply
How to applyTwo steps, in this order
Contact State of New York Mortgage Agency (SONYMA), a division of NYS Homes and Community Renewal (HCR) to reserve funds
Funds are reserved with the provider and are subject to availability.
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 homebuyer can take it to a lender or housing counselor.
Questions about this program
What is SONYMA Down Payment Assistance Loan (DPAL)?
SONYMA Down Payment Assistance Loan (DPAL) is a forgivable loan for homebuyers in New York, administered by State of New York Mortgage Agency (SONYMA), a division of NYS Homes and Community Renewal (HCR). SONYMA's Down Payment Assistance Loan (DPAL) provides funds toward down payment and/or closing costs (including mortgage insurance premiums) for buyers using a SONYMA first-mortgage program. The DPAL is a 0% interest, no-monthly-payment second loan that is forgiven after 10 years. 0% interest rate; no monthly payments; forgiven after 10 years; can be used to cover all or part of mortgage insurance premium to reduce the monthly payment.
How much assistance does it provide?
SONYMA Down Payment Assistance Loan (DPAL) offers between $1,000 and $15,000 in assistance. Amounts are the program's published maximums, not an offer — State of New York Mortgage Agency (SONYMA), a division of NYS Homes and Community Renewal (HCR) determines any individual award.
Do you have to pay it back?
SONYMA Down Payment Assistance Loan (DPAL) is forgiven after 10 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Sale or refinance of the home within the first 10 years; repayable amount decreases 1/120 per month of occupancy; any shortage from sale proceeds is forgiven. The assistance is recorded in second position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.
Who qualifies?
SONYMA Down Payment Assistance Loan (DPAL) is open to homebuyers who will live in the home as their primary residence. Must be used in conjunction with a SONYMA mortgage and the chosen SONYMA program's property-type rules apply (incl. cooperatives). DPAL cannot exceed actual down payment and/or closing costs. Cash back at closing not allowed (except special circumstances). SONYMA will not allow the DPAL to be subordinate to another mortgage. First-mortgage interest rate is 0.40% higher when a DPAL is attached (does NOT apply to Graduate to Homeownership, Homes for Veterans, or ENERGY STAR programs). Borrower must make a minimum cash contribution of 1% of property value (3% for cooperatives and 3- and 4-family properties). Not all participating SONYMA lenders offer DPALs. Amount is the higher of 3% of purchase price (up to $15,000) or $3,000; minimum $1,000.
Where does it apply?
SONYMA Down Payment Assistance Loan (DPAL) serves homebuyers purchasing anywhere in New York.
How do you apply?
Applications for SONYMA Down Payment Assistance Loan (DPAL) go through State of New York Mortgage Agency (SONYMA), a division of NYS Homes and Community Renewal (HCR), which publishes the current terms and the application steps on its own site. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.
Also for New York homebuyersOther programs open to New York homebuyers
- FHLBNY Homebuyer Dream Program (HDP) SuiteUp to $30,000
- SONYMA Achieving the Dream ProgramUp to $15,000
- U.S. Department of Veterans Affairs Specially Adapted Housing (SAH) GrantUp to $126,526
Whether two programs can be combined is up to each agency. Ask before you apply.
All 65 programs for New YorkProgram terms are set by State of New York Mortgage Agency (SONYMA), a division of NYS Homes and Community Renewal (HCR) and can change; confirm on the official site before you apply.