Local Rochester NY First Time Home Buyer Programs and Grants
There are many costs and fees associated with buying a home. For a first time home buyer, it’s likely they don’t have piles of money laying around. There are national, state, and local programs/grants available for a first time home buyer.
Many of these first time home buyer programs and grants can help cover a large amount of the “closings costs” and/or allow them to finance a higher percentage of the loan (or all of the loan in some cases).
Rochester first time home buyers, there are many first time home buyer options and mortgages available to YOU! Note, this article has now been updated as of JANUARY 2025!
Please read on for some detailed information on some great programs that are available to eligible first time home buyers. Keep in mind, even if a specific program is not currently available, it is NEVER to early to begin planning your first home purchase!
Directly below is a short video that briefly discusses some of the fantastic Rochester NY first time home buyer programs and mortgage products!
First Time Home Buyer Programs – National
USDA Rural Development Program
This program is designed to help low to moderate income rural first time home buyers (also available to a non first time home buyer). Rural Development has partnered with lenders across the country to allow 100% financing on eligible properties.
The qualifying ratios are strict in comparison to other mortgage programs. The housing costs cannot exceed 29% and total debt cannot exceed 41%. Eligible repairs and improvements may be included in the loan.
The USDA rural development program is a fantastic option for first time home buyers who’re trying to buy a home in a rural area!
First Time Home Buyer Programs & Grants – State & Local
Homebuyer Dream Program – **UPDATED JANUARY 2025**
This program debuted in July 2019 and was an absolute home run for Rochester NY first time home buyers!
Just how successful was the program? Within 3 weeks of the grant being launched, ALL of the grant money was accounted for.
The homebuyer dream program came back on June 1, 2020! The homebuyer dream program was a bit different in 2020, like many things! The program was spaced across 4 months beginning in June and running through September.
First time home buyers in Rochester would secure their place in the program once they went under contract and once a local lender filled their spaces for the month of June, any future buyer would have to be pushed into the July grant spaces.
The homebuyer dream program did make a return in 2021, 2022, 2023, and 2024!
It has just been released that the homebuyer dream program will return again in 2025! This is excellent news for Rochester NY first time home buyers! The program will open on Monday February 10th, 2025 and will again offer up to $15,000 to first time home buyers to help with their closing costs and down payment!
While the first time home buyer dream program is not open yet, it’s never to early to start planning your home purchase for next year!
What does this mean moving forward for the homebuyer dream program?
While there are some changes to the homebuyer dream program, it is rumored to be coming back this year! Like mentioned above, it is NEVER too early to start exploring your options!
How does the home buyer dream program work?
The homebuyer dream program replaced the First Home Club and is financed by the Federal Home Loan Bank of New York.
The homebuyer dream program is now offering up to $15,000 for qualified first time home buyers! That’s right, up to $15,000!
One of the best benefits to the homebuyer dream program is that there is no savings period, unlike the First Home Club grant which required a buyer to enter a minimum of a 10-months savings program.
Like with any first time home buyer grant, there are restrictions and requirements. A few of the restrictions and requirements pertain to the borrowers income, credit score, and work history.
What are your next steps?
If you aren’t working with a Realtor or Mortgage Originator, you’re in luck! We here at the Rochester Real Estate Blog work closely with one of the top mortgage originators in the Rochester area who offer this amazing program that’ll be launching in the next couple months!
We had so much success with this program and we successfully helped several buyers obtain and utilize this amazing grant program over the past 5-6 years, even during the COVID-19 Pandemic!
Here is what just one of our past clients said about their experience.
This is my first home and Kyle was phenomenal every step of the way. He answered every question I had thoroughly, and made this entire process very easy. He was extremely helpful and a pleasure to work with. I highly recommend him if your looking to buy a home.
If you’re interested, simply click the image above, enter your information, and we’ll reach out to see if you’re eligible for this Rochester NY first time home buyer program.
First Home Club (Program No Longer Being Offered As Of April 2019)
Several lenders throughout New York offer the first home club matched savings program. With this program a first time home buyer can qualify for a grant of $7,500 towards their down payment & closing costs. This grant is financed by the Federal Home Loan Bank of New York (but is also available in New Jersey).
This program matches $4 to every $1 contributed by the first time home buyer (up to $1,875). A “first time home buyer” refers to one whom hasn’t owned a home in the past 3 years, single parents, or displaced homemakers who owned a property within three years with a spouse. The length of this program ranges from 10 months to 24 months. There are income eligibility requirements and depending on which county the first time home buyer resides in will determine what the requirements are.
The first time home buyer must also complete a home buyer education program prior to the grant being approved. This program is an excellent option for a first time home buyer who is either not in an immediate hurry to purchase or cannot purchase at this instant.
State of New York Mortgage Agency (SONYMA)
This agency offers mortgage programs to a first time home buyer with the purchase of a home in New York State. These SONYMA loans are financed through the sale of tax exempt bonds.
Down Payment Assistance Loan (DPAL)
One of the largest hurdles for a first time home buyer is the amount of funds needed for down payment and closing costs. The DPAL allows a first time home buyer to secure down payment assistance through a second mortgage that can be used in conjunction with other SONYMA products. The minimum amount of the DPAL is $1,000 and the maximum is $3,000 or 3% of the purchase price (up to $15,000). This loan has a 0% interest rate. There are no monthly payments on this loan. If the first time home buyer resides at the property for 10 years, the loan is forgiven.
Homes for Veterans Program
In conjunction with the New York State Department of Veterans’ Affairs, SONYMA offers this program that allows U.S. Military Veterans and active U.S. military personnel to buy their first home (also available to a veteran who is a non first time home buyer). The first time home buyer must be stationed in New York State to take advantage of this program. The interest rate for this program are lower than normal SONYMA rates and also allow the buyer to contribute as little as 1% (the other 2% can come as a gift or other acceptable sources).
Achieving The Dream
SONYMA offers this program to a low income first time home buyer with low down payment mortgage financing on one or two family dwellings. The program offers a low minimum cash requirement for the buyer of 1%. There are income eligibility requirements for the Achieving The Dream program and fluctuates depending on the county the property is located in that the first time home buyer is purchasing.
Low Interest Rate Program
SONYMA offers this program to a first time home buyer with low to moderate income. Like the Achieving the Dream program, this program allows the first time home buyer to only have to contribute 1%. There are income eligibility requirements for the Low Interest Rate Program which also fluctuate from county to county.
Remodel New York
SONYMA offers this program to a first time home buyer for the purchase of a home that is in need of improvements and/or repairs. This program allows 97% of the loan to be financed which includes the purchase price plus the cost of the renovations. There is a list of eligible renovations that are allowed with this program. There are income eligibility requirements for this program as well, which fluctuate from county to county.
Construction Incentive Program
SONYMA offers this program to a first time home buyer who purchases newly constructed or rehabilitated homes (up to 97%). The construction incentive program allows a much longer “rate lock” than most loan programs (240 days). SONYMA has income eligibility requirements for this program as well.
Home Purchase Assistance Program (HPAP)
The City of Rochester offers this grant of up to $3,000 (towards down payment and closing costs) to a first time home buyer that meets the HPAP requirements. The property that the first time home buyer is purchasing must be located within the City of Rochester and must be a one or two-family home.
The buyer must contribute $1,500 of their own funds and remain in the home for 5 years. In addition, like the First Home Club, the first time home buyer must attend pre and post-purchase home buying training.
Employer Assisted Housing Initiative (EAHI) Grant
Last, but not least, another fantastic first time home buyer grant in Rochester is the Employer Assisted Housing Initiative grant. This grant is also available for buyers who’re not purchasing their first home but are looking to purchase a home in the City of Rochester.
This program is an incentive to encourage buyers who work for certain employers to purchase a home in the City limits. The program, which is run by the City of Rochester, is a dollar for dollar match program up to $3,000.
It requires that a buyer is able to obtain a conventional mortgage, contributes up to $1,500 of their own money, lives in the property for 5 years, and works for certain employers. Below is a list of the local Rochester companies whose employees can qualify for the EAHI grant.
City of Rochester
Highland Hospital
Rochester Institute of Technology
Unity Health System
University of Rochester
Visiting Nurse Services
XEROX Corporation
Rochester Management, Inc.
Stantec Consulting Services, Inc.
Rochester City School District
If you happen to work for any of the above companies in Rochester NY or you’re planning on moving to Rochester NY to work for these companies, this program may be a fantastic home buying option. One of the best benefits of this program is that it doesn’t have maximum income limitations like many of the Rochester NY first time home buyer programs do, such as the first home club.
Final Thoughts
There are so many options for local first time home buyers! The above are the most popular home buying programs in Rochester NY, but certainly not every option. It’s highly recommended that if you’re looking to purchase your first home in Rochester that you discuss with an experienced buyers agent.
Having helped dozens of Rochester NY first time home buyers over the years, I’d love the opportunity to discuss your circumstances and help you with the process! If you have any questions about these programs or would like to get started, contact me!
More Resources for First Time Home Buyers
About the author: The above article on “First Time Home Buyer Programs In Rochester NY” was written by Kyle Hiscock, a top Pittsford NY Realtor with RE/MAX Realty Group.
Since being launched in 2013, Kyle has published more than 150 quality, in-depth, and unique real estate related articles on the Rochester Real Estate Blog pertaining to topics varying from home selling to mortgages and everything in between! In addition to quality real estate related content, there are also many quality articles pertaining to the Greater Rochester NY area.
The Rochester Real Estate Blog has been recognized by many reputable websites as one of the best real estate blogs to visit and follow! In addition to being recognized as one of the best real estate blogs, Kyle has been recognized as one of the top Realtors on social media by several organizations and websites.
About Rochester’s Real Estate Blog: Rochester’s Real Estate Blog is owned and operated by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group. With over 40 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise.
We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.
