How New York homebuyers can save on a down payment 

Sponsored by JPMorganChase

While there is a lot of uncertainty around the housing market in 2025, affordability still remains a top challenge for homebuyers – especially first-time home buyers who, according to a 2025 Bankrate survey, often cite the upfront costs of homeownership as the biggest barrier to homeownership. And a 2023 study from LendingTree shows that while 39% of homebuyers nationwide use financial assistance, around 22% look to their friends and family for help vs. tapping into available local resources. 

Here’s how those in New York can access assistance programs and how they can address some of the upfront costs of homeownership. 

What are my down payment assistance program options?

Down payment assistance programs aim to make housing more affordable and can be used to address the upfront costs of homeownership. Some down payment assistance options, which span government, municipalities, non-profits, local lenders and so on, include:

• Grants: Homebuyers can receive funds to put toward their down payment—which can be available at the local, state and lender-level. Homebuyer grants may also cover closing costs if you already have the full down payment amount, and may be stacked with other forms of assistance. For example, Chase offers a homebuyer grant of up to $5,000 when purchasing homes in 15,000 eligible areas in the country, including qualifying neighborhoods in New York City. 

• Forgivable loans: Also known as second mortgage down-payment assistance programs, these are low-interest or no-interest down payment loans that may be forgivable. In order to qualify for forgiveness, you may have to satisfy certain requirements. In most cases, borrowers may have to continue to own and live in the home after a period of time to avoid repayment of the loan.

• Deferred-payment loans: These tend to be zero- or low-interest loans that offer a fixed rate to help cover down payment and closing costs. Typically, payments are not due unless you sell the home or refinance your mortgage. If you decide to sell and have a zero-interest deferred-payment loan, you might only have to pay back the amount that you borrowed, regardless of how much time has gone by.

• Low-down payment loans: Outside of down payment assistance, there are a variety of low down payment mortgage options available with flexible credit requirements. These can be offered by the lender, such as Chase’s DreaMaker mortgage, or through government agency loans such as FHA, Standard Agency, etc. These loans may be as little as 3% down for a qualifying borrower.

How do home buyers know if they qualify?

Eligibility depends on a variety of factors. While each program has different eligibility requirements, some of the elements that determine how much help you can receive and on what terms include your credit score, debt-to-income ratio, income, number of people in your household and completion of a homebuyer education program. In some instances, the home purchase price cannot exceed the maximum limitations set by the agency offering assistance.

Each down payment assistance program requires its own application forms and process. By working with a local real estate or mortgage professional, you can gain insight and understanding on local programs offered by New York City. Additionally, prospective buyers can use the Chase Homebuyer Assistance Finder to research and identify assistance programs at the local, state and lender-level they may be eligible for.

Using mortgage calculators can help you estimate what you can afford, and consulting with mortgage professionals can provide tailored advice and alternative financing options to fit your situation. For more information, visit chase.com/afford.

+++

For informational/educational purposes only: Views and strategies described in this article or provided via links may not be appropriate for everyone and are not intended as specific advice/recommendation for any business. Information has been obtained from sources believed to be reliable, but JPMorgan Chase & Co. or its affiliates and/or subsidiaries do not warrant its completeness or accuracy. The material is not intended to provide legal, tax, or financial advice or to indicate the availability or suitability of any JPMorgan Chase Bank, N.A. product or service. You should carefully consider your needs and objectives before making any decisions and consult the appropriate professional(s). Outlooks and past performance are not guarantees of future results. JPMorgan Chase & Co. and its affiliates are not responsible for, and do not provide or endorse third party products, services, or other content.

Member FDIC. Equal Opportunity Lender. 

 © 2025 JPMorgan Chase & Co.