See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 1, 2026
Homebuyer Programs in Babylon, NY (2026)
Babylon is a hamlet on the South Shore of Long Island in the Town of Babylon, Suffolk County, New York. With a median home price around $650,000, it sits in one of Long Island's more desirable waterfront communities. The Town of Babylon HOME Down Payment Assistance Program stands out as one of the most generous local programs on Long Island, providing up to $50,000 as a zero-interest forgivable loan for first-time homebuyers purchasing within the town. Community Housing Innovations offers grants of $25,000 to $35,000 for first-time buyers in Suffolk County. Community Development Long Island provides low-interest loans up to $75,000 toward down payment and closing costs. At the state level, SONYMA's Down Payment Assistance Loan offers up to $15,000 as a forgivable loan, and the FHLBNY Homebuyer Dream Program provides grants up to $30,000. By stacking town, nonprofit, and state programs, Babylon homebuyers can potentially access over $80,000 in combined assistance.
City Programs in Babylon
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Town of Babylon HOME Down Payment Assistance Program | Forgivable Loan | Up to $50,000 | Yes | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $50,000
- First-time only:
- Yes
State Programs in New York
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHLBNY Homebuyer Dream Program | Grant | Up to $30,000 | Yes | View → |
| SONYMA Down Payment Assistance Loan (DPAL) | Forgivable Loan | Greater of $3,000 or 3% of the purchase price, capped at $15,000 (minimum $1,000); cannot exceed actual down payment and closing costs | Yes | View → |
| SONYMA DPAL PLUS | Forgivable Loan | Up to $30,000 | Yes | View → |
- Type:
- Grant
- Amount:
- Up to $30,000
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Greater of $3,000 or 3% of the purchase price, capped at $15,000 (minimum $1,000); cannot exceed actual down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $30,000
- First-time only:
- Yes
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| CDLI Down Payment and Closing Cost Assistance Loan | Repayable Loan | Up to $75,000 | Yes | View → |
| CHI First Time Homebuyer Grant Program | Grant | $25,000 to $35,000 (49% max for down payment and closing costs; 51% minimum for home repairs) | Yes | View → |
| Habitat for Humanity of Long Island Homeownership Program | Zero-Interest Loan | Affordable home purchase with subsidized mortgage | Yes | View → |
| National Faith Homebuyers Down Payment Assistance | Forgivable Loan | $5,000 to $10,000 forgivable loan (amount varies by location) | No | View → |
- Type:
- Repayable Loan
- Amount:
- Up to $75,000
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- $25,000 to $35,000 (49% max for down payment and closing costs; 51% minimum for home repairs)
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase with subsidized mortgage
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- $5,000 to $10,000 forgivable loan (amount varies by location)
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. The Town of Babylon HOME DPA requires household income at or below 80% of the HUD median income for the Nassau-Suffolk area, with a minimum income of $30,000. You must be a first-time homebuyer who has not owned a home in the past three years.
Step 2: Complete homebuyer education. All major programs require a HUD-approved course. The Long Island Housing Partnership provides free mortgage counseling and administers the Town of Babylon program. Contact LIHP at (631) 435-4710. The Wyandanch Community Development Corp also offers housing counseling at (631) 643-4786. Community Development Long Island offers the NeighborWorks homebuyer education program at (631) 471-1215.
Step 3: Contact the Long Island Housing Partnership. LIHP administers the Town of Babylon HOME Down Payment Assistance Program and can help determine which additional programs you qualify for. Call (631) 435-4710 to request an intake form.
Step 4: Get pre-approved for a mortgage. Work with a SONYMA-approved lender to access state-level programs, or an FHLBNY member institution like Suffolk Credit Union to apply for the Homebuyer Dream Program grant of up to $30,000.
Step 5: Find a home within the Town of Babylon. The property must be a single-family dwelling within town boundaries that meets Federal Housing Quality Standards. No foreclosures, short sales, or bank-owned properties are eligible.
Step 6: Submit your applications. Apply for each program you qualify for. You must contribute a minimum of $3,000 from personal funds. Allow 30 to 60 days for processing. The Town of Babylon program loan is forgiven after 10 years of owner-occupancy.
Frequently Asked Questions
How much down payment assistance can I get in Babylon?+−
Do I have to be a first-time homebuyer to qualify?+−
Does the Suffolk County HOME Down Payment Assistance Program apply in Babylon?+−
What is the maximum home price I can buy with assistance?+−
What homebuyer education is required?+−
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