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Homebuyer Programs in Hempstead, NY (2026)

Last updated April 1, 2026 | Population: 58,569 | Median home price: $508,000 | Est. closing costs: $10,000 - $15,000

Skyline of Hempstead, NY

Hempstead is a village in Nassau County on Long Island, New York, located about 30 miles east of Manhattan, with a median home price of approximately $508,000. Homebuyers in Hempstead have access to strong local assistance programs, highlighted by the Nassau County HOME Down Payment Assistance Program offering up to $50,000 as a forgivable loan and the Village of Hempstead CDA Down Payment Assistance Grant providing $25,000 funded by CDBG. Community Development Long Island (CDLI) also offers low-interest loans of up to $75,000 for down payment and closing costs. At the state level, the SONYMA DPAL provides up to $15,000 and the SONYMA DPAL PLUS offers up to $30,000 in zero-interest forgivable assistance, while the FHLBNY Homebuyer Dream Program provides grants of up to $30,000. By stacking eligible programs, Hempstead buyers could potentially access over $100,000 in combined assistance.

Top Homebuyer Programs in Hempstead

Village of Hempstead CDA Down Payment Assistance Grant
Type:
Grant
Amount:
$25,000
First-time only:
Yes
Nassau County HOME Down Payment Assistance Program
Type:
Forgivable Loan
Amount:
Up to $50,000
First-time only:
Yes
FHA Loans
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
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
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
HomeReady Mortgage (Fannie Mae)
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
HUD $100 Down Program
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
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
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
CDLI Down Payment and Closing Cost Assistance Loan
Type:
Repayable Loan
Amount:
Up to $75,000
First-time only:
Yes
Habitat for Humanity of Long Island Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home purchase with subsidized mortgage
First-time only:
Yes
FHLBNY Homebuyer Dream Program
Type:
Grant
Amount:
Up to $30,000
First-time only:
Yes
SONYMA Down Payment Assistance Loan (DPAL)
Type:
Forgivable Loan
Amount:
Up to $15,000 or 3% of purchase price, whichever is greater (minimum $1,000)
First-time only:
Yes
SONYMA DPAL PLUS
Type:
Forgivable Loan
Amount:
Up to $30,000
First-time only:
Yes

How to Apply

  1. Step 1:

    Check your eligibility. Review income limits for the programs you are interested in. The Nassau County HOME program and the Village of Hempstead CDA grant both require household income at or below 80% AMI. The CDLI loan serves buyers earning up to 120% AMI. SONYMA programs have county-specific income limits.

  2. Step 2:

    Complete homebuyer education. The Long Island Housing Partnership (LIHP) provides free mortgage counseling for first-time buyers. CDLI offers a NeighborWorks Home Buyer Education Program required for their loan. Contact LIHP at (631) 435-4710 or CDLI at (631) 471-1215.

  3. Step 3:

    Contact a housing counselor. Work with LIHP to begin your Nassau County HOME down payment assistance application. They serve as the administering agent for Nassau County's program and can guide you through the process.

  4. Step 4:

    Get pre-approved for a mortgage. If using SONYMA programs (DPAL or DPAL PLUS), connect with a SONYMA-approved participating lender. For the FHLBNY Homebuyer Dream Program, apply through a participating FHLBNY member bank or credit union. For the CDLI loan, obtain a commitment for a fixed-rate first mortgage through a NYS-approved lender.

  5. Step 5:

    Find a home within program limits. The CDLI loan requires a purchase price under $500,000 for Nassau County properties. The Nassau County HOME program applies to eligible single-family homes in Nassau County. The Village of Hempstead CDA grant applies specifically to properties within the Village of Hempstead.

  6. Step 6:

    Submit your applications and close. Provide a minimum of $5,000 from your own funds for the Nassau County HOME program. The home must remain your primary residence for 15 years under both the county and village programs. Work with your counselor and lender to coordinate all program applications.

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