State Buyer Guide

First-Time Home Buyer Guide
for New York

Down payment assistance, New York housing programs, closing cost estimates, and what to know before buying — including from FSBO sellers.

Step 1 — Do This First

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$485,000
Avg Home Price
1.72%
Property Tax Rate
~$19,400
Est. Closing Costs
0.4% state; NYC adds 1–2.625%
Transfer Tax

New York Housing Finance Agency Programs

The State of New York Mortgage Agency (SONYMA) is your primary source for below-market mortgage rates and down payment assistance in New York. Programs are available through approved lenders — not directly through the HFA.

SONYMA Achieving the Dream
Down payment as low as 3%; competitive below-market rates

Low-interest 30-year mortgage for first-time buyers with low to moderate income.

Income limit: $89,880–$165,600 (varies by county and household size)
Learn more at State of New York Mortgage Agency (SONYMA)
SONYMA Down Payment Assistance Loan
Up to 3% of purchase price or $15,000 (whichever is less) — 0% deferred

Paired 0% interest second mortgage for down payment and closing costs.

Income limit: Same as SONYMA mortgage
Learn more at State of New York Mortgage Agency (SONYMA)
High Value — $240/funded loan

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Closing Costs in New York

Typical Closing Cost Range
4% of purchase price

On a $485,000 home: approximately $19,400

Transfer Tax
0.4% state; NYC adds 1–2.625%

New York State charges a basic transfer tax of $2 per $500 (0.4%). NYC adds its own RPTT of 1% (under $500K) or 1.425% (over $500K). Purchases over $1M trigger the Mansion Tax (1–3.9%).

Attorney at Closing?
Yes — New York is an attorney-closing state

Attorney representation at closing is required in New York. Budget $1,200–$2,000 for a real estate attorney. Both buyer and seller typically hire their own.

Key Tips for Buying in New York

  • NYC co-op purchases require board approval — a slow and uncertain process. Condos are simpler for first-time buyers.
  • Outside NYC, Hudson Valley, Long Island, and Westchester offer quality of life but come with very high property taxes.
  • Get a fully executed purchase agreement reviewed by your attorney before waiving any contingencies.
  • New York has a 3-business-day attorney review period in many contracts — use it to negotiate inspection issues.
Home Inspection

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Legal Help for New York Buyers

As an attorney-closing state, New York requires a licensed real estate attorney to conduct your closing. You'll also want one to review your purchase agreement.

Legal Help for FSBO Buyers

Nolo

Nolo has been the go-to legal resource for DIY buyers since 1971. Their real estate guides explain purchase agreements, contingencies, and closing in language anyone can understand.

Browse Legal Guides
LegalZoom

Get a real estate attorney to review your purchase agreement or help you draft an offer letter — often for a fraction of traditional legal fees.

Get Legal Help
US Legal Forms

Download state-specific purchase agreements, addenda, and disclosure forms — written by attorneys, ready to use in your state.

Browse Real Estate Forms

Frequently Asked Questions

What first-time buyer programs are available in New York?

New York first-time buyers can access programs through the State of New York Mortgage Agency (SONYMA) (https://hcr.ny.gov/sonyma), including the SONYMA Achieving the Dream (Down payment as low as 3%; competitive below-market rates) and the SONYMA Down Payment Assistance Loan (Up to 3% of purchase price or $15,000 (whichever is less) — 0% deferred). Federal programs like FHA loans (3.5% down) and USDA loans (0% down in eligible areas) are also available.

What are typical closing costs in New York?

Closing costs in New York typically run 4% of the purchase price. Transfer tax: 0.4% state; NYC adds 1–2.625%. New York State charges a basic transfer tax of $2 per $500 (0.4%). NYC adds its own RPTT of 1% (under $500K) or 1.425% (over $500K). Purchases over $1M trigger the Mansion Tax (1–3.9%).

Do I need an attorney to buy a home in New York?

Attorney representation at closing is required in New York. Budget $1,200–$2,000 for a real estate attorney. Both buyer and seller typically hire their own.

What is the average home price in New York?

The median home price in New York is approximately $485,000. Property taxes average 1.72% of assessed value annually.

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