Down Payment Assistance Loan (DPAL)

One of the biggest financial hurdles faced by potential homeowners is the down payment and closing costs. SONYMA’s Down Payment Assistance Loan (DPAL), which is available for all buyers using a SONYMA mortgage program, can provide the initial funding you need to purchase your first home.

If you are required to carry mortgage insurance, a DPAL can be used to cover all or a portion of your premium, which can reduce your monthly mortgage payment significantly.

• 0% interest rate
• No monthly payments
• Forgiven after 10 years
• Minimum loan amount: $1,000
• Maximum loan amount: 3% of the purchase price (up to $15,000) or $3,000, whichever is highest

A Down Payment Assistance Loan cannot exceed your actual down payment and/or closing costs. 

Interest rates for first-time mortgages with a DPAL attached will be 0.40% higher than mortgages without. This higher interest rate does not apply to our Graduate to Homeownership, Homes for Veterans, or ENERGY STAR® programs. 

All or a portion of your Down Payment Assistance Loan may be required to be repaid if you sell your home or refinance your mortgage within the first 10 years of purchase.  The amount subject to possible repayment will decrease by 1/120 per month each month you live in the property.  In the event the proceeds from the sale of your home is not enough to pay any repayable amount, the shortage will be forgiven.

Regardless of which SONYMA program you apply for, you must make a minimum cash contribution of 1% of the value of the property (3% for cooperatives and 3- and 4-family properties).

DPALs may only be used in conjunction with a SONYMA mortgage and may be used for any property type eligible under your chosen mortgage program, including cooperatives.

Cash back at closing is not allowed with a DPAL, except in special circumstances.

SONYMA will not allow your DPAL to be subordinate to another mortgage.

Please remember that not all participating SONYMA lenders offer DPALs. Contact your preferred lender, or view our list of participating SONYMA lenders to find out more.

Accruing enough assets to close on a new home is one of the largest barriers to homeownership. To address that need, SONYMA is offering a limited, enhanced down payment assistance loan, called DPAL PLUS 2026. The funding for DPAL PLUS 2026 is part of Governor Hochul's $25 billion comprehensive Housing Plan that will create or preserve 100,000 affordable homes across New York State, including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes. This subsidy is designed to help low-income New Yorkers achieve their homeownership dream. Maximum household income of 60% of the Area Median Income (AMI).

DPAL PLUS 2026 can be used to pay down payment, closing costs and single premium MI until purchase money mortgage amount is 80% LTV, up to $30,000. When used in combination with other subsidies/grants, DPAL PLUS 2026 must be applied after the others. For more information, please see the DPAL PLUS ATD Term Sheet.

Interest rates for first-time mortgages with a DPAL attached will be 0.40% higher than mortgages without. This higher interest rate does not apply to our Graduate to Homeownership, Homes for Veterans, or ENERGY STAR® programs. 

SONYMA participating lenders may originate a DPAL PLUS 2026 loan. At this time, DPAL Plus 2026 is available throughout New York state. Funds will be offered on a first-come, first-served basis to those who are eligible. When funds are depleted, the program will end, unless indicated otherwise by SONYMA. If you have any questions, please reach out to us at [email protected].

This program launches on July 1st. Please check this page regularly for updates.