How HomeFirst, SONYMA DPAL, fee waivers, and credits can reduce cash needed
On a $500,000 NYC purchase with 80% financing, closing costs run about $16,700 to $30,700 for a condo and $6,350 to $15,450 for a co-op, on top of the down payment. That second bill is why closing cost assistance matters.
Many buyers save the down payment and then discover the second cash requirement after the offer is accepted. That is late. Closing cost help belongs in the first budget conversation.
In my 25+ years as a Licensed Real Estate Associate Broker, I have seen deals slow down because the buyer understood the mortgage payment but not the attorney, lender, building, and tax line items.
| Program | What it can cover | Watch item |
|---|---|---|
| HomeFirst | Down payment or closing costs, including title insurance, commitment and attorney fees | Up to $100,000; you still bring 3% of the price from your own funds |
| SONYMA DPAL | Down payment, closing costs, or mortgage insurance | 3% of the price, up to $15,000, and never more than your actual costs |
| Lender fee waiver programs | Application, processing, underwriting, or commitment fees | Membership or employer rules may apply |
| Seller credits | Some buyer closing costs when negotiated | Loan program caps apply |
| Cost Bucket | Usually Applies To | Typical Range |
|---|---|---|
| Buyer attorney | Co-ops, condos, houses | $2,000 to $3,000 co-op; $2,500 to $3,500 condo |
| Mortgage recording tax | Financed condos and houses | 1.8% of loans under $500,000; 1.925% above; co-ops exempt |
| Title insurance | Condos and houses | $3,000 to $8,000+; a co-op lien search is about $350 to $450 |
| Building application and move-in fees | Co-ops and condos | $1,000 to $2,000 |
| Lender costs | Most financed purchases | $3,000 to $10,000 |
Those ranges produce the $500,000 totals above. On a condo with a $400,000 loan, the recording tax alone is $7,200. A co-op avoids that tax and the title policy, which is why the same price can close for $10,000 to $15,000 less. Ranges are typical, not quotes. The NYC closing costs guide explains each line, and the co-op vs. condo guide covers why costs differ.
Currently available properties across NYC
252 South Street #21H
Chinatown
120 Riverside Boulevard #10-E
Lincoln Square
Listing information provided courtesy of the Real Estate Board of New York's Residential Listing Service (RLS). Information is deemed reliable but not guaranteed. Sale listings verified. ©2026 REBNY. RLS data displayed by Keller Williams NYC.
Say a first-time buyer puts $15,000 (3% of the price) from savings into a $500,000 condo with a $400,000 loan. The remaining down payment and the $16,700 to $30,700 in closing costs are the gap. HomeFirst can lend up to $100,000, which is 20% of the price, and HPD's term sheet lets it pay customary closing costs such as title insurance, commitment fees and attorney fees. The assistance is a forgivable loan, so the buyer takes on a 10-year or 15-year occupancy commitment in exchange.
A condo buyer can use a purchase CEMA (Consolidation, Extension and Modification Agreement) to assume the seller's existing mortgage balance and pay recording tax only on the new money. If the seller owes $600,000 and you borrow $1 million, a CEMA saves roughly $11,550, usually split with the seller in negotiation. Both lenders must cooperate and it adds a few weeks, so raise it when you make the offer. An all-cash buyer skips the recording tax and lender costs entirely.
The NYC buyer guide connects the cash plan to the offer and closing calendar.
Milton Coste, Licensed Real Estate Associate Broker with Keller Williams NYC, can help you compare property type, price range, and cash-to-close before you spend weeks on the wrong purchase path for closing cost assistance.
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Currently available properties across NYC
555 Main Street #1408
Roosevelt Island
555 Main Street #1311
Roosevelt Island
Listing information provided courtesy of the Real Estate Board of New York's Residential Listing Service (RLS). Information is deemed reliable but not guaranteed. Sale listings verified. ©2026 REBNY. RLS data displayed by Keller Williams NYC.
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Disclaimer: All information provided in this article is for educational purposes only and does not constitute legal, financial, or real estate advice.
Listing data sourced from the REBNY Residential Listing Service (RLS). Information is deemed reliable but not guaranteed.
Milton Coste is a Licensed Real Estate Associate Broker affiliated with Keller Williams NYC,
360 Madison Avenue, 9th Floor, New York, NY 10017. License No. 10301213304.
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Milton Coste
Licensed Real Estate Associate Broker · Keller Williams NYC
License No. 10301213304 · 360 Madison Avenue, 9th Floor, New York, NY 10017
