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What is New York’s DPAL program and do I qualify for it?

Inflation is at a record high and the housing market is pretty slim.

house for sale

That means many first time home buyers in New York will need support to cover the costs.


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What is the DPAL program?

It is estimated that inflation has lead the price to increase 20.3% year-over-year. Seeing that the amount of available houses on the market is limited, that may send prices up even further. Read more about it here.

Luckily, New York has assistance in place to help first time homebuyers. The program is called the Down Payment Assistance Loan (DPAL). The DPAL program is provided by the State of New York Mortgage Agency (SONYMA).

For most first time homebuyers, the down payment and closing costs tend to be expensive. SONYMA offers something similar to a secondary mortgage to help applicants pay for the up-front costs of a home.

DPAL has more favorable terms than most mortgages and many recipients won’t have to pay a portion back.

Interest on not levied on DPALs, and there are no monthly payments. Provided that the owner keeps the SONYMA financing and continues to live in the home, the whole loan will be forgiven after 10 years.

The loan can be used to pay all or a portion of any one-time mortgage insurance premium. For qualifying applicants, this would allow them to pay more up front, lowering their monthly mortgage. The minimum loan size is $1,000 and the maximum is $3,000 or 3% of the home purchase price (up to a maximum of $15,000). If you’re interested in DPAL, you can learn How to Apply here.


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