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Homebuyer Programs in Oyster Bay, NY (2026)

Last updated April 1, 2026 | Population: 6,945 | Median home price: $900,000 | Est. closing costs: $18,000 - $27,000

Skyline of Oyster Bay, NY

Oyster Bay is a historic hamlet on the North Shore of Long Island in Nassau County, New York. With a median home price around $900,000, it is one of the more expensive markets on Long Island, which makes down payment assistance particularly valuable for buyers here. The Nassau County HOME Down Payment Assistance Program provides up to $50,000 as a forgivable loan for homes priced under $594,000, though many Oyster Bay properties exceed that limit. Community Housing Innovations offers grants of $25,000 to $35,000 for first-time buyers purchasing in Nassau 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 combining state and nonprofit programs, Oyster Bay buyers can potentially access over $50,000 in total assistance.

Top Homebuyer Programs in Oyster Bay

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
CHI First Time Homebuyer Grant Program
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
Habitat for Humanity of Long Island Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home purchase with subsidized mortgage
First-time only:
Yes
National Faith Homebuyers Down Payment Assistance
Type:
Forgivable Loan
Amount:
$5,000 to $10,000 forgivable loan (amount varies by location)
First-time only:
No
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. Most programs require household income at or below 80% to 120% of the Area Median Income depending on the program. The Nassau County HOME DPA has specific income limits and a $594,000 purchase price cap, so review whether your target home qualifies.

  2. Step 2:

    Complete homebuyer education. All major programs require a HUD-approved course. The Long Island Housing Partnership provides free mortgage counseling and is the administrator for Nassau County programs. Contact LIHP at (631) 435-4710. Community Development Long Island offers the NeighborWorks homebuyer education program and can be reached at (631) 471-1215.

  3. Step 3:

    Contact the Long Island Housing Partnership. LIHP administers the Nassau County HOME Down Payment Assistance Program and can help determine which programs you qualify for. They also coordinate applications for multiple DPA programs on Long Island.

  4. Step 4:

    Get pre-approved for a mortgage. Work with a SONYMA-approved lender to access state-level programs, or a FHLBNY member institution to apply for the Homebuyer Dream Program grant of up to $30,000.

  5. Step 5:

    Find a home within program limits. The Nassau County HOME DPA limits purchases to $594,000, which may restrict options in Oyster Bay where many homes exceed that price. The CDLI loan program caps at $500,000. However, SONYMA and FHLBNY programs have higher limits.

  6. Step 6:

    Submit your applications. Apply for each program you qualify for. Many can be combined. The Nassau County HOME DPA requires a minimum $5,000 personal down payment. Allow 30 to 60 days for processing.

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