Buying your first home in New York is doable, even here, even now. It takes a plan, a realistic budget that includes property taxes, and someone on your side who has done it many times. Team Modern X has guided first-time buyers across Nassau, Suffolk, Queens, the Bronx, Westchester and beyond. Here is the guide we wish every buyer read first.
1. How much do you really need?
- Down payment: not 20 percent. Conventional loans start at 3 percent down for first-time buyers, FHA at 3.5 percent, VA at 0 percent for eligible veterans.
- Closing costs: in New York plan for your attorney, title insurance, lender fees, an appraisal, prepaid taxes and insurance, and the mortgage recording tax (roughly 1 percent of the loan on Long Island and about 2 percent inside New York City). Altogether, buyers usually budget about 2 to 5 percent of the price for closing costs. On a first purchase the total is often a meaningful second number after the down payment.
- Mansion tax: 1 percent, paid by the buyer, on purchases of $1,000,000 or more.
- Reserves: lenders and co-op boards like to see money left over after closing.
2. Programs that can help
- SONYMA (State of New York Mortgage Agency): low-interest first-time buyer mortgages and down payment assistance. Achieving the Dream, for example, finances up to 97 percent of the price for lower-income first-time buyers with as little as 1 percent of your own money, and SONYMA’s down payment assistance loan adds $3,000 or 3 percent of the price (up to $15,000) as a zero-interest second loan that is forgiven if you stay in the home for ten years.
- County and nonprofit down payment help such as the Long Island Housing Partnership and Nassau and Suffolk first-time buyer programs, income-limited, capped by purchase price and usually requiring a homebuyer education class. Nassau’s most recent round offered up to $50,000 through LIHP; these programs open and close as funding allows, so ask us what is accepting applications right now.
- Lender grants some banks offer in specific ZIP codes.
We connect you with local lenders who know these programs and close on Long Island and in the city every month.
3. Property taxes are part of the payment
Two homes at the same price can have very different monthly costs because of taxes. Nassau and Suffolk taxes are among the highest in the country; New York City taxes on one-to-three family homes are usually lower. Always compare the full monthly number, and ask about the STAR exemption, which lowers school taxes for owner-occupants. Our property tax guide explains how it works.
4. The New York buying process
- Pre-approval from a lender before you look. Sellers here will not take an offer seriously without it.
- Search and tour. We set up alerts and see homes together, including in Spanish if you prefer.
- Offer. Price, down payment, financing, closing date and contingencies.
- Inspection first. In New York you inspect before signing the contract, so you can renegotiate or walk away.
- Contract and down payment. Your attorney reviews the contract; you sign and deliver the down payment to escrow. Now the seller cannot sell to someone else.
- Mortgage commitment, appraisal and title. Usually 30 to 45 days.
- Walkthrough and closing. Keys in hand. Typically 60 to 90 days after your offer was accepted.
5. Houses, co-ops and condos
On Long Island most first homes are houses. In Queens, the Bronx and Manhattan, co-ops and condos are common and often the affordable entry point. Co-ops require board approval, more cash down and a board package; condos are simpler but pricier per square foot. We explain the monthly math (maintenance versus common charges plus taxes) before you fall in love with one.
6. Mistakes we see first-time buyers make
- Shopping without a pre-approval, then losing the house to a prepared buyer.
- Ignoring the tax bill and flood zone until the lender brings it up.
- Skipping the inspection to “win” a bidding war.
- Waiving the appraisal contingency without a cash cushion.
- Buying a house with an illegal basement apartment counting on that rent.
- Spending savings on furniture before closing.
Frequently asked questions
Do I need a real estate agent to buy?
You do not have to, but a buyer’s agent represents you, not the seller, and in most Long Island and NYC sales the seller agrees to cover the buyer-agent compensation as part of the deal. Compensation is negotiable, and we put ours in writing before you tour a single home.
How long does it take to buy a first home?
From starting your search to keys, three to six months is common. From accepted offer to closing, about 60 to 90 days.
Can I buy with student loans or a short work history?
Often yes. Lenders look at your debt-to-income ratio and stability, not perfection. A pre-approval conversation costs nothing.
Can we do everything in Spanish?
Yes. Richard is bilingual and works with Spanish-speaking lenders and attorneys.
Get the free Home Buyer Guide
Our free buyer guide covers all of this in more detail, with checklists. Or contact Richard and start with a 15-minute call.
Team Modern X, Jason Mitchell Real Estate NY. 45 Cherry Valley Ave, West Hempstead, NY 11552. Mon–Fri 9am–7pm, Sat 10am–5pm.