First-Time Home Buyer Programs on Long Island, NY: 2026 Guide

First-time home buyer programs on Long Island can save you real money, but only if you know which ones are open and which ones fit you. Some programs change every year. Some close for months at a time. And a few have income limits that are higher than most people expect.

This guide covers the programs Long Island buyers can use in 2026, what each one offers, and the New York costs to plan for. Every number comes from an official source linked below.

Who counts as a first-time home buyer?

For SONYMA, New York's state mortgage agency, a first-time buyer is someone who has not owned their main home in the past 3 years, according to the SONYMA Seller's Guide. So if you owned a home years ago, you may count as a first-time buyer again.

Some SONYMA programs also waive the first-time rule for eligible veterans or for homes in certain Target Areas.

SONYMA programs for Long Island buyers

SONYMA (the State of New York Mortgage Agency) runs the biggest first-time buyer programs in the state. You apply through a participating lender, not through SONYMA directly.

Achieving the Dream

Achieving the Dream is SONYMA's lowest interest rate program. It's a 30-year fixed loan with no points. Down payment can be as low as 3%, and your own cash contribution can be as low as 1% (3% for co-ops). A homebuyer education course is required.

Low Interest Rate Program

The Low Interest Rate Program has the same basic terms with higher income limits. It's a good fit for buyers who earn too much for Achieving the Dream.

2026 income and price limits for Long Island

Nassau and Suffolk are in SONYMA's Long Island region. These limits apply to reservations accepted starting July 6, 2026, and can change.

The purchase price limit for a 1-family home is $1,306,970 (or $1,597,410 in a Target Area). Sources: ATD limits and LIRP limits. Household size counts everyone who will live in the home.

Down payment help from New York State

SONYMA Down Payment Assistance Loan (DPAL)

The SONYMA DPAL gives you the higher of $3,000 or 3% of the price, up to $15,000. It has 0% interest and no monthly payment, and it's forgiven after 10 years. If you sell or refinance sooner, you may repay part of it. It only works with a SONYMA mortgage, and loans with a DPAL carry a slightly higher rate (0.40%).

DPAL PLUS 2026

SONYMA also announced DPAL PLUS for 2026: up to $30,000 for households at or below 60% of area median income. It can help with down payment and closing costs. Funds are first come, first served until they run out, so ask a SONYMA lender if money is still available.

Local Long Island down payment programs (closed right now)

As of September 2026, the Long Island Housing Partnership lists these programs as closed:

• Nassau County: up to $50,000
• Suffolk County: up to $30,000
• Town of Brookhaven: up to $50,000
• Town of Babylon: up to $50,000

The Suffolk County program says its next round is expected to open, but no date is posted yet. These programs usually have income limits and price caps, and they fill up fast when they open. If you want one, take a homebuyer education class now so you're ready.

Low down payment loans anyone can use

• FHA: as little as 3.5% down with a credit score of 580 or higher, under HUD rules.
• VA: no down payment for eligible veterans and service members if the price isn't above the appraisal, per VA.gov.
• Fannie Mae HomeReady: 3% down for buyers at or below 80% of area median income. First-time buyers need a homeownership course. See Fannie Mae.
• Freddie Mac Home Possible: 3% down, also for buyers at or below 80% of area median income. See Freddie Mac.
• USDA: 100% financing, but only in eligible rural areas. Very few Long Island addresses qualify. Check the exact address on the USDA map.

Long Island costs first-time buyers forget

A program can lower your down payment. It doesn't erase closing costs. Plan for these:

• Mortgage recording tax: 1.05% of the loan in Suffolk, per the County Clerk. On 1 to 2 family homes the lender usually pays part of it. Your attorney will confirm your share.
• Mansion tax: 1% of the price, paid by the buyer, if the home costs $1 million or more (NY Tax Department).
• Attorney and title: in New York, attorneys usually handle the contract and closing. Title insurance rates are set by a state-filed rate manual.
• Property taxes: often the biggest monthly cost after the mortgage. Read the Long Island property tax guide.

Don't miss the STAR credit

New homeowners in New York don't get the old STAR exemption. You get the STAR credit instead, as a check or direct deposit, if it's your main home and household income is $500,000 or less. You have to register with the NYS Tax Department. Many new buyers forget this step.

Free homebuyer education on Long Island

Many programs require a class, and it's worth taking anyway. These HUD-listed agencies offer first-time buyer counseling:

• Long Island Housing Partnership, Hauppauge
• Housing Help Inc., East Northport area
• Community Development Corporation of Long Island, Nassau and Suffolk offices

See the full list on HUD's counselor search.

Your first-time buyer checklist

1. Check your credit and pay down small balances.
2. Take a homebuyer education class.
3. Talk to a lender that offers SONYMA loans and ask about DPAL.
4. Compare at least two loan options side by side.
5. Get a written pre-approval.
6. Build a full monthly budget: mortgage, taxes, insurance, repairs.
7. Then start touring homes.

How I help first-time buyers

I don't rush deals. I focus on clarity, strategy, and protecting your time and money. I spent 25+ years in commercial property management before selling homes, so I read a tax bill and a repair estimate closely. And I work in English and Spanish.

If you're buying with an ITIN, read how ITIN mortgages work. When you're ready, book a free consultation and we'll map out your budget and the programs that fit you.

Kellen Vinco

Licensed Real Estate Salesperson · Douglas Elliman

Kellen helps Long Island buyers and sellers in English and Spanish, with 25+ years of property management experience behind every home she walks through.

About KellenFree consultation516-263-4569

This article is for general information only and is not legal, tax, mortgage, or financial advice. Market conditions change, so confirm details for a specific property. Equal Housing Opportunity.