Khaleda Ilias had been applying for affordable housing through NYC Housing Connect since 2010, hoping to secure a stable home for her family. They had longtime issues at their NYCHA apartment, including building maintenance, a rodent problem, and the one bathroom their growing family had to share. When they moved to Harlem in 2015, she kept searching, exploring housing options in the Bronx as well as in their Harlem community.
After years of seeking and waiting, she finally bought her first home last month, a new Bronx co-op — with the help of the HomeFirst Down Payment Assistance Program. The program provides qualified first-time homebuyers with up to $100,000 to go towards a down payment or closing cost. Best of all, the money doesn’t have to be repaid.
How HomeFirst can help you buy a home
Families who take advantage of this program can buy a one- to four-unit family home, a condominium, or a cooperative in one of the five boroughs of New York City. To qualify, a prospective homebuyer must meet specific criteria, including completing a homebuyer education course taught by an HPD-approved counseling agency, contributing their own savings to the down payment or closing costs, and meeting program income eligibility requirements.
Once you receive the HomeFirst assistance, you need to live in the home for 10 or 15 years (depending on the amount of the forgivable loan) so that you don’t need to pay it back.
Ilias first learned about HomeFirst during the process of applying for a housing lottery through NYC Housing Connect. “I was only looking for rent,” she said. “Then, a couple of years ago, I learned they also had sales options.”
Why you need patience and persistence
The process, however, wasn’t easy. From the moment Ilias learned she’d won the housing lottery, it took two and a half years to close on her new home — a three-bedroom, two-bathroom space that she now shares with her husband and three children. The endless paperwork and long waits were frustrating for Ilias: “They take forever. You feel like, ‘Are you gonna get it?’” she said.
What helped her push through was the support she received from Reverend Dr. Charles Butler, Vice President of Equitable Development with Harlem Congregations for Community Improvement (HCCI). With over 20 years of experience, he has guided countless prospective homeowners through the HomeFirst process.
The HomeFirst program required Ilias to take four classes, where she learned the ins and outs of homeownership, from mortgages and interest rates to budgeting for maintenance costs and property taxes.
Rev. Butler knows firsthand the challenges of buying a home in New York City. He purchased his own home through a similar lottery process in Harlem in the late 90s, navigating misinformation and unexpected hurdles. Today, he uses those experiences to ensure homebuyers like Ilias are better prepared.
“Regardless of what you buy, you should have the property inspected by a licensed state inspector,” Rev. Butler said, noting his own regrets about skipping this step. “If you’re spending four or 500,000 dollars, spend $400 for an inspection.”
But he notes that many potential homebuyers face significant hurdles well before they get to the point of inspections and contracts. “Most people think they’re going to get the money up front. They don’t realize that they need a mortgage to be eligible for the grant,” he said, highlighting a common misconception about the HomeFirst program: you don’t just get handed up to $100K.
Being financially prepared
Rev. Butler stresses the importance of financial readiness, noting that many individuals “haven’t saved any money, they have bad credit, all these kinds of issues.”
The challenge of saving in the city is an all-too-common barrier. “A lot of first-time buyers will tell me they’re using one and a half paychecks to pay rent, and you still got food, clothes, utilities, maybe student loans. And so it’s very difficult,” he said.
Even back in the 90s, before the cost of some Harlem properties really started to rise, Rev. Butler and his wife faced similar homebuyer struggles: They couldn’t find anything they could afford, so they widened their search, looking in the Bronx, Long Island City, and New Jersey, before finally settling on LIC.
“I work in Harlem, my wife teaches in Harlem, my kids are going to school in Harlem, my church is in Harlem,” he said. “[I was thinking,] ‘why am I now in Long Island City?’ I’m now being uprooted from my community because I can’t afford anything in the community.”
Rev. Butler eventually sold the home in LIC and bought a place in Harlem through a lottery. It was in disrepair, had a rodent problem and was near crack houses and vacant lots. But at least they were homeowners in their community. They and their new neighbors soon banded together and formed a housing association to improve their situation.
But his initial struggles being initially priced out of his neighborhood are why Rev. Butler has seen scores of New Yorkers moving to cities like Allentown, Pennsylvania, even as they continue to work in NYC.
For New Yorkers who want to stay, though, Rev. Butler emphasizes the need to be diligent in managing your money management. He encourages prospective buyers to eliminate wasteful spending and make the necessary sacrifices. “There has to be a strong desire, and you need the discipline, the determination, the dedication, and you cannot get discouraged,” he says.
Why being a homeowner in NYC is still worth it
Beyond the practical advice, Butler emphasizes the emotional rewards of homeownership. “It’s not just about having a roof over your head. It’s about building something that belongs to you and your family,” he said.
Some homeowners see their purchase as a way to build intergenerational wealth and secure a legacy for their children, especially with future uncertainties around programs like Medicare. According to Rev. Butler, homeownership is key to breaking cycles of poverty, yet many families lack estate plans, wills, or beneficiaries, which leaves assets vulnerable to government claims after a loved one passes. A lot of it has to do with a lack of financial education.
“A lot of people will tell me, we never discussed finances. We never discussed home ownership,” he said. To address this, HCCI also hosts workshops to help families understand the importance of financial planning.
Similarly, for Ilias, this journey was about more than just having more space — it was about stability and the future. She became the first in her family to own a home. She was concerned about having an affordable place for her family as they got older. After all, she had seen friends and family forced to leave their homes as they got priced out. Owning property offered her a newfound sense of security.
Looking ahead, Ilias hopes to pass the property down to her children, though she encourages them to pursue homeownership themselves. “I want my children to find their own homes as well,” she said.
Ilias’s advice for those considering the program? “Continue, even if you do not think you can afford it, because you never know when your name is gonna come up.” She also urges patience with the process, noting it could take a couple of months every time you submit a document.
“And be prepared to share a lot of personal information — they want every single piece of evidence,” she said.
As she prepares to move into her new home, Ilias reflects on the changes ahead. “Now, it’s on you,” she said. “If anything breaks, it’s your responsibility. But it’s worth it.”
How the program works
In order to qualify for the program, potential buyers can’t make more than 80% of the Area Medium Income (AMI). Next, buyers need to take a homebuyer education course taught by an HPD-approved counseling agency, like the one Rev. Butler teaches with HCCI. They will then work with a counseling agency to complete the application.
If the family lives in the home for at least 10 years, the loan is forgivable if it was less than or equal to $40,000. If the family received more than that amount, they have to live in the home for 15 years in order for the loan to become forgivable.
You can see more information about the process here and see a chart of the AMI. This link will also help you find a counseling agency near your home.
Upcoming Thursday evening workshops with HCCI can be found here, and you can register online here. You must take all four classes to receive your certificate.
Other community organizations, like Cchaya CDC, also offer the first-time homebuyer workshop series for possible certification. Learn more here.
Read more of our housing stories here.
