New York Mortgage Guide

New York Different

Two very different markets. New York State has two distinct real estate markets: New York City (the most expensive and complex in the country) and everywhere else (more affordable, more typical). This guide covers both, but understand that buying in NYC is a completely different experience than buying upstate or on Long Island.

Highest closing costs in the nation. New York consistently ranks #1 for closing costs due to multiple taxes stacked on top of each other:

• Mortgage recording tax: 1.8% on loans under $500K, 1.925% on loans over $500K in NYC
• Transfer tax: 0.4% statewide, plus additional NYC taxes
• Mansion tax: 1-4.15% on purchases $1M+ (and $1M doesn't buy a mansion in Manhattan)
• Attorney fees: New York requires attorneys at closing (not optional)

  On a $500,000 purchase with a $400,000 mortgage in NYC, expect $15,000-20,000+ in closing costs just from taxes alone.

  Attorneys are mandatory. Unlike most states where title companies handle closings, New York requires both buyer and seller to have attorneys. Budget $2,000-4,000 for legal fees.

  Co-ops dominate NYC. In Manhattan and much of Brooklyn/Queens, most apartments are co-ops (cooperatives), not condos. Co-ops are harder to finance, have strict board approval processes, and often require 20-50% down payments. We'll explain the difference below.

  Property taxes vary wildly. NYC actually has relatively low property taxes (~0.9%), but Westchester, Nassau, and parts of Long Island have some of the highest in the country (2-3%+). A $600,000 home in Westchester might cost $15,000-18,000/year in property taxes alone.

SONYMA Low Interest Rate Program

• Benefit: Below-market 30-year fixed-rate mortgages
• Who qualifies: First-time buyers, income limits apply (vary by county — higher in NYC metro)
• Down payment: As low as 3%
• Website: hcr.ny.gov/sonyma

  SONYMA Down Payment Assistance Loan (DPAL)

• Benefit: Up to $15,000 (or 3% of purchase price) for down payment/closing costs
• How it works: 0% interest, no monthly payments for 10 years, then forgiven 1/120th per month
• Must pair with: SONYMA first mortgage
• Website: hcr.ny.gov/down-payment-assistant-loan-dpal

  SONYMA Achieving the Dream

• Benefit: Low down payment mortgages for lower-income first-time buyers
• Down payment: As low as 3%
• Income limits: Lower than standard SONYMA programs
• Website: hcr.ny.gov/achieving-dream-program

  - Benefit: Forgivable loan up to $40,000 toward down payment or closing costs

• How it works: Forgiven over 10 years; if you stay 10+ years, you owe nothing
• Who qualifies: First-time buyers earning up to 80% of Area Median Income
• Property types: 1-4 family homes, condos, or co-ops in the five boroughs
• Must complete: Housing counseling through HPD-approved agency
• This is significant: $40,000 is one of the largest DPA grants in the country
• Website: nyc.gov/site/hpd/services-and-information/homefirst-down-payment-assistance-program.page

• Benefit: Grants up to $10,000 for down payment/closing costs
• Who qualifies: First-time buyers at or below 80% AMI
• How it works: Work with a participating lender

(January 2026)

Median home prices by area:

• Manhattan: $1.1M+ (condos); co-ops can be "cheaper" but with higher down payments
• Brooklyn: $850,000
• Queens: $650,000
• Long Island (Nassau): $650,000
• Long Island (Suffolk): $525,000
• Westchester: $700,000
• Hudson Valley: $425,000
• Buffalo: $250,000
• Albany: $285,000
• Syracuse: $210,000

  Market trends:

• NYC market has stabilized after post-pandemic volatility
• Upstate cities (Buffalo, Rochester, Syracuse) remain significantly more affordable
• Hudson Valley and the Catskills saw huge price increases during COVID remote work migration — now cooling
• Long Island inventory remains tight for single-family homes

  Best value areas for 2026:

• Buffalo/Rochester (extremely affordable, growing economies)
• Syracuse area (university town, low prices)
• Capital Region (Albany, Troy, Schenectady)
• Hudson Valley (if you can find inventory)
• Outer Queens/Eastern Brooklyn (relative value compared to Manhattan)