Downpayment Assistance

For many first-time homebuyers, saving sufficient funds for downpayment and closing costs is a big challenge.

The goal of BCNI’s Homebuyer Assistance Program is to help low-income individuals realize the goal of purchasing their first home by providing information and access to financial resources that can help make their homebuying dreams a reality. We provide direct assistance to homebuyers in Schenectady and Montgomery Counties, and work with a network of partners in the region – housing counseling organizations, lenders and realtors – to refer our clients to all available assistance.

BCNI Downpayment Assistance

BCNI serves as a Local Program Administrator (LPA) on behalf of the City of Schenectady and NYS Homes and Community Renewal, offering various forms of downpayment and closing cost assistance to income-qualified individuals and households. Homebuyers must receive pre-purchase counseling from BCNI or have been referred to us from another HUD-Certified Housing Counseling Agency with verification of a completed pre-purchase counseling, to qualify for available assistance. Other restrictions and requirements may apply. Contact us today to learn more about available assistance.

Homebuyer Dream Program® (HDP®)

Administered by the Federal Home Loan Bank of NY (FHLBNY), the Homebuyer Dream Program® (HDP®) funds allow participating lenders to provide grants that help cover down payment, closing costs and homebuyer counseling services for eligible homebuyers who meet certain income and additional criteria. This program is available throughout the Capital Region through participating lenders. For a current list of participating lenders in New York State, please see: Homebuyer Dream Program® (HDP®) Suite Participating Members. Please note that BCNI is NOT a lender, and therefore we do not have direct access to HDP® funds, but will make referrals to local lenders during the pre-purchase counseling process.

SONYMA Programs

The State of New York Mortgage Agency, or SONYMA, recognizes that home loans are not “one size fits all,” because everyone’s needs are different. That’s why they offer a variety of low-interest mortgage loans for eligible homebuyers. Vist SONYMA to find a program that meets your needs.

SONYMA mortgages are available through a network of participating lenders across New York State.  These lenders are familiar with SONYMA mortgage programs and their requirements, options and benefits. Applying for a mortgage can be intimidating. But not with SONYMA. Your SONYMA lender will guide you through the homebuying process from start to finish. For more on how to apply for SONYMA financing, or to find a participating lender, see how to apply for details.

Homebuyer Grant Programs By Community

City of Albany

City of Albany Home Acquisition Program (HAP) – When funds are available, the Albany Community Development Agency provides 5% of the purchase price for down payment assistance (up to $10,000) and up to $5,000 for eligible closing costs. Use the deferred loans to acquire 1-4 unit owner-occupied homes throughout the City of Albany. Often combined with the City’s home repair and lead paint abatement program. HUD income limits apply.

Contact the Albany Community Development Agency (518) 434-5265 or visit albanyny.gov.

Albany County

ACRHA Acquisition/Rehabilitation Grant – The Albany County Rural Housing Alliance provides first-time buyers with a grant for acquisition and repairs. The award amount depends on amount of repair needed as 51% of the grant funds must be used toward rehabilitation costs.

  • Eligible areas are throughout Albany County
  • For more information on this and other grants offered by the organization, contact ACRHA at (518) 765-2425. Application forms and details are available on ACRHA’s website

City of Schenectady & Montgomery County

Better Community Neighborhoods, Inc. Homebuyers Assistant Program: Better Community Neighborhoods, Inc. offers down-payment and closing cost assistance to first time homebuyers for up to 10% of the purchase price with an average grant of $9,000 depending on the needs and location of the home.. If you move or sell the property, or fail to live in the property during the five-year period of affordability, a pro-rated portion of the grant must be repaid with no interest.

  • The property must be in standard condition
  • Pass a Certificate of Occupancy inspection
  • Complete a visual lead assessment
  • Complete a home and asbestos inspection
  • HUD 80% median income limits* apply.
  • Home to be purchased must be located in City of Schenectady or Montgomery County.
  • For more information contact Better Community Neighborhoods, Inc. (518)372-7616 or visit www.bcnihousing.org

City of Troy

City of Troy “HIP” Program – Check availability of the Homebuyer Incentive Program. When funds are available, it offers $15,000-20,000 in down payment assistance to owner-occupant purchasers. Grant amounts are based on household income. Grants require TRIP homeownership training and are available throughout the City of Troy.

Town of Colonie

Town of Colonie Down Payment Program – The Town of Colonie provides $14,000 for down payment and closing costs for the purchase of a single family home in the Town of Colonie, or villages of Colonie or Menands. This is a deferred loan that becomes a grant if you occupy the home for a period of 10 years.

    • Home must be in good condition at time of purchase and meet HUD Housing Quality Standards (HQS)
    • HUD income limits apply
    • To be placed on their waiting list, contact the Colonie Community Development office at (518) 783-2718
    • Visit Town of Colonie

Rensselaer County

Rensselaer County Housing Resources – RCHR offers “Small Cities” money up to $20,000 towards a home purchase, anywhere in Rensselaer County except the City of Troy. 1 unit owner-occupied homes are eligible. Homes must be in good condition at the time of purchase and pass a HUD “Housing Quality Standards” (HQS) inspection. Income limits are 80% of HUD median income.

  • Contact the TRIP HomeOwnership Center at (518) 272-8289 or visit the TRIP website for details

Schoharie County

Schoharie County Rural Preservation Company – Be sure to check availability. Schoharie RPC offers first-time homebuyer grants and/or repair grants through three home purchase assistance programs. Details are:

  • Applicants must meet income guidelines. Funds can be used for downpayment and closing, and rehabilitation monies to address health and safety hazards in the home
  • Call for details, eligibility and availability: (518) 234-7604

Available Regional Grants

NYS Association of REALTORS® Housing Opportunities Foundation – NYSAR’s Housing Opportunity Foundation offers $2,000 gifts to assist income- eligible owner-occupants with the purchase of a home throughout New York State.

  • Grant application
  • The grants are administered by The Community Foundation for the Greater Capital Region, Inc.
  • Applicant income must be less than 110% of the SONYMA Low Interest Rate Program income limits
  • Visit NYSAR