Federal Home Loan Bank Offers $30,000 Grants to New York First-Time Homebuyers
The 2026 round of the Homebuyer Dream Program remains open through November 27, providing up to $30,000 toward down payments and closing costs for eligible households.
By Thomas Obasi ·
The Federal Home Loan Bank of New York is allocating up to $30,000 in grants to assist first-time homebuyers with down payments and closing costs. The 2026 funding round for the Homebuyer Dream Program remains open until November 27. Applicants must secure the funds through a participating financial institution that still has available capital.
Eligibility depends on total household income, the number of residents, and the specific county where the purchase occurs. The program sets the income ceiling at 80% of the median income for that county, adjusted for household size. For instance, if the median income for a comparable household is $100,000, the applicant's household may earn up to $80,000.
Buyers generally qualify as first-time purchasers if they have not owned a primary residence in the previous three years. The home must serve as the applicant's primary residence. The basic program allows purchases in any U.S. state or territory, including New York, but excludes investment properties, vacation homes, and vacant land. Applicants must contribute at least $1,000 toward the purchase and complete a homebuyer orientation course.
The process requires contacting an approved lender to confirm fund availability. That lender reserves the grant with the Federal Home Loan Bank of New York. The mortgage must also originate through the participating entity or an authorized affiliate. Applicants and sellers must sign a purchase contract before the lender requests the fund reservation. The closing cannot occur until the fund commitment is confirmed.
The 2026 basic program has $22,100,000 in allocated funds and 107 participating institutions. Each qualifying household can receive up to $30,000 for the down payment and closing expenses. The grant may also cover homebuyer counseling services. Individuals can identify participating lenders by emailing HDP@fhlbny.com or calling 212-441-6700.
Recipients sign a five-year agreement at closing. If the homeowner sells, transfers, or refinances the property during that period, they must notify the lender and may be required to repay a portion of the grant unless an exception applies. Buyers who expect to move or refinance within five years should review this agreement with their lender before signing.
Households with incomes exceeding 80% of the county median can inquire about HDP Plus. In New York, that tier allows incomes up to 120% of the median. The program serves working families seeking to enter the housing market with reduced upfront costs.
