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SONYMA Down Payment Assistance Loan (DPAL)

State of New York Mortgage Agency (SONYMA), a division of NYS Homes and Community Renewal (HCR) · New York

Last verified
See what you qualify forOfficial program site →
Assistance

$1,000–$15,000

The maximum the program publishes — not an offer

Repayment

Forgivable

Forgiven after 10 years

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 buyer 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 buyers who will live in the home as their primary residence.

The program requires

  • 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.

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 does it apply?

SONYMA Down Payment Assistance Loan (DPAL) serves buyers 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.

  1. 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.

  2. 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.

Learn this program

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SONYMA Down Payment Assistance Loan (DPAL), explained

A short, free course on SONYMA Down Payment Assistance Loan (DPAL): 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.

5 modules · About 10 minutes

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