NYC teachers can access up to $148,000 in combined down payment assistance through four programs that stack on a single purchase. I am currently working with a teacher client in Washington Heights who is applying for three of these simultaneously on a co-op under $500,000, and most of her down payment will be covered. She had no idea any of it existed until we started talking numbers.
The four programs are NYC HomeFirst (up to $100,000), Teacher Next Door (up to $33,000 combined), the SONYMA Down Payment Assistance Loan (up to $15,000), and Presidential Bank's Educators First program (eliminates all lender fees at closing). Each one targets a different part of the cost of buying. Together they can cover your entire down payment and most of your closing costs on a purchase under $500,000.
If you want the full picture of programs open to any NYC buyer regardless of profession, the NYC buyer guide covers the broader landscape. This article focuses on what teachers and school employees specifically qualify for, and how to use all of it at once.
Who counts as a teacher?
Teacher Next Door has the broadest eligibility. It covers public and private school teachers, administrators, school psychologists, social workers, counselors, para-professionals, office staff, coaches, custodians, librarians, bus drivers, lunchroom staff, and college professors. If you work for a school in any capacity, you likely qualify.
The UFT-specific program (Presidential Bank Educators First) requires active UFT or NYSUT membership. HomeFirst and SONYMA are open to any first-time buyer in NYC who meets income and purchase price limits. Being a teacher is not required for those two, but they pair well with the teacher-specific benefits.
Program 1: NYC HomeFirst (Up to $100,000)
HomeFirst is administered by NYC's Department of Housing Preservation and Development (HPD). It provides a forgivable loan of up to $100,000 toward your down payment or closing costs on a co-op, condo, or 1-4 family home in any of the five boroughs.
HomeFirst Key Facts
- • Maximum: $100,000
- • Forgiven after 10 years (loans up to $40K) or 15 years (loans over $40K)
- • You must contribute a minimum 3% from your own funds
- • Income limit: up to 120% AMI ($136,080 for a single person, $155,520 for two people)
- • Purchase price limit: $661,000 in Manhattan and the Bronx; $699,000 in Queens; $732,000 in Brooklyn
- • Works on co-ops, condos, and 1-4 family homes
The required first step is a free homebuyer education class through an HPD-approved counseling agency. Once complete, you receive a certificate of eligibility to bring to a participating lender. The counseling agencies also verify your income and walk you through the full application.
| Manhattan Counseling Agency | Phone | Languages |
|---|---|---|
| NHS of NYC Homeownership Center | (718) 732-8100 | English, Spanish |
| Abyssinian Development Corporation | (646) 442-6545 | English, Spanish |
| Harlem Congregations for Community Improvement | (212) 281-4887 x231 | English, Spanish |
| Housing Partnership Development Corp | (646) 217-3392 | English |
| Asian Americans For Equality | (212) 964-2288 | English, Mandarin, Cantonese |
Call the counseling agency early in your home search, not after you find a property. The class and eligibility certification can take several weeks, and HomeFirst funding is allocated on a rolling first-come basis.
Program 2: Teacher Next Door (Up to $33,000)
Teacher Next Door is a national private program with two benefits on the same purchase: a grant of up to $9,000 (free money, never repaid) plus additional down payment assistance of up to $24,000. The combined total reaches $33,000.
Unlike HomeFirst, there is no restriction on which home you buy. Any listing on the market qualifies, in any borough. There are no application fees, no up-front costs, and no credit check to submit the pre-application.
Cash Benefits
- • Grant up to $9,000, never repaid
- • Down payment assistance up to $24,000
- • Free appraisal credit up to $545 at closing
Other Savings
- • No application or up-front fees
- • Discounted title fees
- • Preferred interest rates
- • Dedicated buyer's agent included
Apply at teachernextdoor.us/pre-application/teacher. A program specialist contacts you after submission to confirm your eligibility and the specific amounts available in your area. No credit check at the pre-application stage.
Active Co-op Listings
Co-ops under $700K eligible for teacher assistance programs
118-17 Union Turnpike #11-J
Forest Hills
209-10 41st Avenue #2-E
Bayside
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.
Program 3: SONYMA Down Payment Assistance Loan (Up to $15,000)
The State of New York Mortgage Agency (SONYMA) offers a Down Payment Assistance Loan that attaches to a SONYMA mortgage. It covers up to 3% of the purchase price, with a minimum of $3,000 and a maximum of $15,000. The loan carries a 0% interest rate, requires no monthly payments, and is fully forgiven after 10 years.
Co-op Buyers: One Requirement to Know
SONYMA requires a minimum 3% cash contribution from your own funds on a co-op purchase. On a $500,000 co-op, that is $15,000 of your own money before the DPAL applies. Plan your savings around this. The DPAL then covers the remaining down payment amount required by your lender.
One tradeoff to know: your mortgage rate will be 0.40% higher when a DPAL is attached versus a standard SONYMA loan. On a $400,000 loan at 30 years, that is roughly $80 more per month. Weigh the upfront cash savings against the long-term rate increase with your lender. For help running those numbers, the NYC mortgage pre-approval guide walks through the math.
Two UFT partner lenders that offer SONYMA with the DPAL:
| Lender | Phone | Website |
|---|---|---|
| AnnieMac Home Mortgage | (516) 320-8220 | anniemac.com |
| Federal Savings Bank | (516) 430-5719 | thefederalsavingsbank.com |
Program 4: Presidential Bank Educators First ($3,000 to $6,000 in Fee Savings)
Presidential Bank is the only FDIC-insured bank with a dedicated program for UFT and NYSUT members. All lender fees are waived: no application fee, no processing fee, no underwriting fee, no lock-in fee, no commitment fee, and no broker fee. On a typical NYC mortgage those fees total $3,000 to $6,000.
The program also provides a free full mortgage commitment letter before you start shopping. A commitment in hand before you make an offer puts you in a stronger position than a pre-qualification alone. Contact them at presidentialbankmortgage.com and state that you are a UFT or NYSUT member requesting the Educators First program.
How the Programs Stack on a $500,000 Purchase
| Program | Potential Amount | Repayment |
|---|---|---|
| NYC HomeFirst | Up to $100,000 | Forgiven at 10–15 years |
| Teacher Next Door grant | Up to $9,000 | Never repaid |
| Teacher Next Door DPA | Up to $24,000 | Program terms apply |
| SONYMA DPAL | Up to $15,000 | Forgiven at 10 years |
| Presidential Bank fee savings | $3,000–$6,000 | Fee elimination, not a loan |
| Total potential benefit | Up to $154,000 | Maximums, subject to qualification |
Not every buyer qualifies for every program at its maximum, and specific combinations require lender approval. Confirm stacking eligibility with your lender before building your budget around these figures. For a full breakdown of what you owe at closing beyond the down payment, the NYC closing costs guide covers attorney fees, title insurance, and transfer taxes in detail.
Income and Purchase Price Limits
| Program | Income Limit | Purchase Price Limit |
|---|---|---|
| NYC HomeFirst | 120% AMI ($136K single / $155K for 2) | $661K–$732K by borough |
| Teacher Next Door | None listed | No restriction |
| SONYMA DPAL | Set by SONYMA by county | Set by SONYMA by county |
| Presidential Bank | None (UFT/NYSUT membership required) | No restriction |
What to Do First
The programs have different lead times. Starting them in the wrong order costs weeks.
- 1.Call an HPD counseling agency this week to register for the HomeFirst class. This step takes the longest and unlocks the most money. Start before you find a property.
- 2.Submit the Teacher Next Door pre-application at teachernextdoor.us. Takes five minutes, no credit check required.
- 3.Call AnnieMac Home Mortgage (516) 320-8220 or Federal Savings Bank (516) 430-5719 to get pre-approved on a SONYMA loan and check DPAL eligibility at the same time.
- 4.Contact Presidential Bank to lock in the Educators First fee waiver. Mention UFT or NYSUT membership from the first call.
Steps 2, 3, and 4 run in parallel once step 1 is underway. If you are still deciding between a co-op and a condo, that choice affects minimum down payment requirements across these programs. The co-op vs. condo guide covers the structural and financial differences between both property types.
Working Through These Programs?
Milton Coste has 25 years of experience working with first-time buyers across all five boroughs, including teachers applying for multiple assistance programs on the same purchase.
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