New York · State guide
How to buy a house in New York
A tale of two markets — pricey downstate and NYC, affordable but red-hot upstate — with high taxes, but strong state help and up to $100,000 in down payment assistance in the city. Here is the playbook for buying in the Empire State.
Last updated June 2026
Why New York is different
Buying a house in New York, the short version
The federal process is the same everywhere — read the complete guide to buying a house for the eight universal steps — but New York has its own programs, taxes, and closing rules worth knowing before you start.
The picture: New York is a bimodal market. NYC and downstate (Long Island, Westchester) are very expensive, while upstate (Buffalo, Rochester, Syracuse) is affordable but red-hot with fierce bidding. The state agency, SONYMA, offers below-market loans plus down payment help — and NYC adds up to $100,000. Property taxes are high, though they vary enormously.
Two things to plan for. New York is an attorney-closing state, and the transfer taxes are steep — including a buyer-paid “mansion tax” that climbs to 3.9% in NYC. Since 2024, sellers must complete a disclosure form with new flood questions. Use the 50-state hub to compare other states.
The market
What homes cost in New York
Two markets in one state — expensive downstate, affordable but competitive upstate.
The statewide median sale price was about $876,000 in spring 2026 (Redfin) — but that figure is dragged up by the expensive downstate markets and hides a huge gap. Inventory is tight everywhere. Prices vary enormously by area:
Median prices by area
Manhattan condos/co-ops ~$1.225M · Brooklyn ~$1.05M · Long Island (Nassau/Suffolk) ~$751K · Westchester ~$750K · Staten Island ~$750K · Queens ~$742K · Bronx ~$610K · Albany ~$254K · Buffalo (Erie) ~$205K · Syracuse ~$179K · Rochester (Monroe) ~$165K and one of the most competitive markets in the country (~9 offers, ~12 days).
Down payment & rate help
SONYMA programs
You don’t apply directly — you work through a participating lender. A 620 credit score and a homebuyer course are the main requirements.
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Achieving the Dream & LIRP
The core: below-market 30-year fixed mortgages. Achieving the Dream has SONYMA’s lowest rate for lower incomes; the Low Interest Rate Program allows higher incomes. There’s also Conventional Plus and FHA Plus for repeat buyers. Income and price limits vary a lot by county.
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Down Payment Assistance (DPAL)
The help: the DPAL loan gives the greater of $3,000 or 3% of the price, up to $15,000, at 0% with no monthly payment — and it’s forgiven after 10 years. Low-income buyers can get DPAL PLUS up to $30,000.
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NYC HomeFirst (up to $100,000)
In the five boroughs, the city’s HomeFirst program offers a forgivable loan of up to $100,000 toward your down payment — for first-time buyers under income limits who contribute at least 3% and complete an HPD course. It’s the most generous local help in the country.
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Grants, veterans & federal help
The FHLBNY Homebuyer Dream grant adds up to $30,000 statewide, Homes for Veterans waives the first-time rule, and upstate cities (Buffalo, Rochester, Syracuse) add their own help. Plus USDA (0% down, rural upstate), VA (0% down), and FHA (3.5% down).
The SONYMA rules in brief
You’ll generally need a 620 credit score, a DTI around 45%, completion of a homebuyer education course, and a minimum 1% of your own funds (3% for co-ops and 3–4 family homes). Household income and purchase price must be under county limits — far higher downstate (over $200,000 income and a $1.3M price cap in NYC) than upstate (around $80,000–$112,000 income). Most SONYMA down payment help is a forgivable second mortgage (DPAL over 10 years; DPAL PLUS over 10 years), and a Mortgage Credit Certificate can add a tax credit of up to $2,000 a year. “First-time” means no ownership in three years (waived for veterans and in target areas).
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Property taxes
Property taxes in New York: high, and wildly uneven
New York property taxes are among the highest in the nation — an effective rate around 1.5%, nearly double the national average, with a median bill over $6,500. But the variation is extreme: Long Island and Westchester have some of the highest bills in the entire US (six counties top $10,000), while upstate often has higher rates on lower-value homes (Monroe/Rochester runs ~2.36%). NYC proper has a lower effective rate, thanks to high values and fractional assessment of co-ops and condos. Always check the specific town’s numbers.
Register for STAR — and know the 2% cap
After you buy, register for STAR (School Tax Relief), now paid mostly as a check: Basic STAR (income under $500,000) and Enhanced STAR for seniors 65+ (2026 income limit $110,750, worth $700–$1,500). New York also caps the annual growth of each local government’s tax levy at the lower of 2% or inflation (2% for 2026) — but that caps the total levy, not your individual bill, which can still rise after a reassessment. In NYC, watch for an expiring 421-a abatement on a condo — the post-abatement bill can jump tens of thousands a year. Seniors and veterans have additional exemptions worth claiming with the local assessor.
Closing & costs
Closing on a home in New York
New York is an attorney-closing state — a real estate attorney conducts the closing (typically $1,500–$3,500), especially downstate. Title insurance is standard (rates are regulated, so they’re uniform across insurers); note that co-ops don’t need title insurance or a mortgage recording tax, which makes them a value play in NYC. The transfer taxes are steep: the state charges 0.4% (paid by the seller), NYC adds its own RPTT (1%–1.425%), and a “mansion tax” of 1% applies to homes $1M+ — paid by the buyer, and graduated up to 3.9% in NYC. On financing, the 2026 conforming limit is $832,750 upstate, rising to $1,209,750 in the NYC metro (where FHA reaches $1,249,125).
Watch the mansion-tax “cliffs” — and the new flood disclosure
The NYC mansion tax is a cliff: the rate applies to the entire price, so crossing $1M, $2M, $3M, or $5M by even a dollar can cost thousands — negotiate just under the line. (Buyers financing a house or condo in NYC also pay a mortgage recording tax of about 1.8%–1.925%, which co-ops avoid.) On disclosure, a 2024 change scrapped the old $500 credit, so sellers must now complete the Property Condition Disclosure Statement, which added flood-risk questions (FEMA zone, flood history, insurance). The federal lead-paint disclosure applies to pre-1978 homes, with a 10-day inspection window. Always get your own home inspection too.
Insurance & risks
Insuring a New York home
Home insurance here is moderate statewide — averaging roughly $1,500–$2,500 a year — but it rises sharply downstate and on the coast. Long Island is among the priciest markets in the country. The main risks split by region: coastal storms and hurricanes on Long Island and in NYC (Superstorm Sandy devastated the coast in 2012), flooding (Hurricane Ida’s 2021 NYC flooding was deadly), and winter weather upstate — lake-effect snow and the December 2022 Buffalo blizzard.
On the coast: a wind deductible and flood insurance
If you’re buying on Long Island or the NYC coast, expect a separate hurricane/windstorm deductible that’s a percentage of your home’s value (often 1%–5%, with 2% the Long Island default), triggered by a named storm. And flood is never covered by a standard policy — an NFIP (or private) flood policy is essential in coastal NY and NYC flood zones; buy it early (30-day waiting period). If a coastal or older home is hard to insure, New York has backstops: the NYPIUA (the NY FAIR Plan) and the Coastal Market Assistance Program. Upstate, the focus is snow load, ice dams, and frozen pipes.
Wherever you buy
The steps that work the same in New York
New York sets the local rules, but these parts of buying are the same everywhere.
Quick answers
Buying a house in New York: common questions
How much money do you need to buy a house in New York?
It depends hugely on where. Upstate (Rochester, Syracuse), a ~$180,000 home needs about $6,000–$6,500 down with FHA. Downstate, a ~$750,000 home needs far more. SONYMA can add up to $15,000 (or $30,000), and NYC’s HomeFirst up to $100,000. See how much you really need →
Does New York have down payment assistance?
Yes. SONYMA’s DPAL offers up to $15,000 (DPAL PLUS up to $30,000) as a forgivable second mortgage. NYC’s HomeFirst adds up to $100,000, the FHLBNY grant up to $30,000, and upstate cities have their own programs. See assistance programs →
Why are New York property taxes so high — and so uneven?
New York relies heavily on local property taxes (effective rate ~1.5%, median bill over $6,500). Long Island and Westchester are among the highest in the US (over $10,000), while upstate has higher rates on cheaper homes. Register for STAR to lower your school taxes.
What is the “mansion tax” in New York?
It’s a 1% tax on homes $1 million and up, paid by the buyer. In NYC it’s graduated, climbing to 3.9% on the priciest homes — and it applies to the whole price, so crossing a threshold by a dollar can cost thousands. Outside NYC, only the flat 1% applies.
What credit score do you need in New York?
SONYMA generally requires a 620. For loans broadly, FHA can go to 580 and USDA/VA typically want 620. A higher score mainly earns a lower rate. Check the score by loan type →
Do I need an attorney to buy a house in New York?
Yes. New York is an attorney-closing state — a real estate attorney conducts the closing, especially downstate and in NYC. Title insurance is standard (and co-ops don’t need it).
What do sellers have to disclose in New York?
Since 2024, sellers must complete the Property Condition Disclosure Statement, which now includes flood-risk questions (FEMA zone, flood history, insurance). The federal lead-paint disclosure applies to pre-1978 homes. Condos and co-ops are exempt from the PCDS.
Is home insurance expensive in New York?
It’s moderate statewide (~$1,500–$2,500/year) but much higher on coastal Long Island and in NYC, where wind and flood risk add cost. Upstate is cheaper, with snow as the main risk. Flood is always a separate NFIP policy.
What’s the conforming loan limit in New York?
$832,750 upstate for 2026, rising to $1,209,750 in the NYC metro (the 5 boroughs plus Nassau, Suffolk, Westchester, Rockland, Putnam), where FHA reaches $1,249,125. The FHA floor upstate is $541,287. Loans above the limit are jumbo.
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Buying in a different state?
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