Buffalo NY

Buffalo NY First Time Home Buyer Programs and How to Apply

Several Buffalo and Western New York programs help first-time buyers with down payments and closing costs. Eligibility, amounts and conditions differ, so compare them before you apply.

Housing Ledger Editorial

13 Oct 2026 • 6 min read

Several Buffalo, NY first-time home buyer programs can help with your down payment and closing costs.

Programs differ by city, town and lender, so the amount and rules you get depend on where you buy. A home inside city limits must meet City of Buffalo rules ^[1].

Buyer counseling is often required to apply, so plan for it early ^[2]^[3]. The Buffalo Urban League's HUD-approved counselors help first-time buyers with that step ^[3]. This article covers the City of Buffalo program, the grants in nearby towns, the Federal Home Loan Bank option, and how to apply. For more detail, see How to use Arizona first time home buyer programs.

How does the City of Buffalo assistance work?

The City of Buffalo's down payment and closing cost assistance gives eligible buyers up to $15,000 as a loan that can be forgiven. The loan carries 0% interest and is deferred, so it adds no interest cost to your purchase. ^[1]^[4]

The repayment rule

The main condition is repayment. If you sell the home or move out within five years of purchase, you must pay the loan back in full. ^[1]

For example, if you buy a home and move out after three years, the full loan amount becomes due. If you stay for five years, the loan does not need to be repaid under this rule.

Which homes qualify

The property must be located in the City of Buffalo. It must also be a one-family or two-family home, or a vacant home, in generally good condition. ^[1]

A duplex inside city limits fits the property rules, while a home just across the city line in a suburb does not. Your buyer's eligibility also matters, so confirm your status with the program before you make an offer.

Buffalo City Hall's stone facade stands above a downtown plaza with pedestrians on the sidewalk below.

What do programs in nearby towns and cities offer?

The Town of Hamburg and the City of Niagara Falls each run assistance that differs from the City of Buffalo program in size and form. Hamburg offers a $20,000 purchase reduction that is forgivable after 10 years ^[2]. Niagara Falls offers a $5,000 grant for closing costs ^[2].

These two benefits help with different bills. A purchase reduction lowers the amount you pay for the home, while a closing-cost grant covers some of the fees you pay to finish the sale. If your main gap is fees on a modest purchase, the smaller Niagara Falls grant may matter more to you than the larger Hamburg figure.

The Hamburg benefit depends on time. If you expect to move within a few years, a benefit that builds over a decade may not suit your plans, even though the amount is larger.

Each program is run by a different office, so start with the one for the town or city where you plan to buy. For Hamburg, the listed contact is Hamburg Community Development. For Niagara Falls, the listed contact is NeighborWorks Community Partners ^[2].

Call the office and ask for the current terms before you make an offer. Ask what the program requires from you, when the money is paid, and how the 10-year period is counted. Ask what happens to the benefit if you sell or move before that period ends. Writing down the answers lets you compare these options side by side with the City of Buffalo program.

Modest single-family houses with front lawns line a quiet residential street in a suburb near Buffalo, New York.

Are there grants from the Federal Home Loan Bank?

The Homebuyer Dream Program gives grants of up to $30,000 to first-time buyers, and you receive the money through one of the Federal Home Loan Bank of New York's approved members. ^[5] In practice, you apply through that member, so start with the lender or partner handling your mortgage.

Who qualifies

The grant is for buyers earning at or below 80% of the Area Median Income (AMI). ^[5] If your household earns more than that limit, you do not qualify, even if the home price looks affordable to you.

You must be a first-time buyer, which means you have not owned a home within the last 3 years. ^[6] If you sold a home two years ago, this rule would rule you out.

You also must be under contract to buy a home when you apply. ^[6] If you are still house hunting, you cannot apply yet, so sign a purchase agreement first.

How the funds are awarded

Funds are limited each year. ^[6] That means a year's money can run out before the year ends, so the timing of your application matters.

The money is available on a first-come, first-served basis. ^[6] For example, if two eligible buyers apply and only one of them can be funded, the buyer who applied first is the one who gets the grant. An eligible buyer who is already under contract should submit the application without waiting.

What about the East Buffalo program?

The East Buffalo Down Payment Assistance Plus Program (DPAL+) is sized to close the gap between your first mortgage and the home's value. Its award is calculated to bring your primary mortgage down to 80% loan to value of the home ^[7]. Loan to value (LTV) is your loan amount divided by the home's value, so a lower LTV means you are borrowing less against the property.

The award covers the difference needed to reach that level, rather than a fixed sum.

The cap is the main limit. The maximum award will not exceed $30,000 ^[7]. That is twice the $15,000 limit of the City of Buffalo's first-time buyer program, which has funds to help first-time homebuyers with their down payment and closing costs, up to $15,000 ^[1]. For more detail, see Pros and Cons of Living in Buffalo, NY: Costs, Winters and Trade-offs.

If the city money would leave part of the gap open, the East Buffalo award may cover more of it, up to $30,000 ^[7]^[1]. Put both awards next to your own loan figures to see which one closes more of your gap.

How do you apply for these programs?

Your first step is homebuyer counseling, then a call to the program contact, and a signed purchase contract before you apply. Work through these steps in order.

Start with homebuyer counseling. The Buffalo Urban League's HUD-approved counselors help first-time buyers navigate the path to homeownership ^[3]. Its housing department provides first-time homebuyer orientations that give an overview of the homebuying process ^[3]. After the orientation, counselors work with you one on one to determine your mortgage readiness ^[3].
Call the contact for the city program. To apply for down payment and closing cost assistance, you must go through the contact listed for each program ^[2]. For the City of Buffalo program, call a Belmont Housing counselor at 716-884-7791 ^[2]. Tell the counselor the city or town where the home is located, because each program covers a different area.
Get under contract before you apply. The Homebuyer Dream Program requires you to be under contract to purchase a home at the time of application ^[6]. That means you sign a purchase contract on a specific home first, then file the application. Once the contract is signed, you have the documents you need to start the process with a counselor.

Which program should you check first?

Your home's address decides where to start. If the home is inside Buffalo city limits, start with the City of Buffalo down payment and closing cost program, because its purchase must be within the City of Buffalo ^[1]. If you are buying in another area, check the Federal Home Loan Bank grant, but only if your household income is under its limit. For a closer look, read Moving to Buffalo NY: Renting vs. Buying, Costs and Timing.

Before you apply to either, ask a HUD-approved counselor to confirm current terms. The Buffalo Urban League's counselors are HUD-approved and work with first-time buyers ^[3]. Bring the address of the home you plan to buy, so the counselor can match it to the right program and tell you which income figures apply to you this year.