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Homebuyer Programs in Smithtown, NY (2026)

Last updated April 2, 2026 | Population: 24,587 | Median home price: $775,000 | Est. closing costs: $15,500 - $23,500

Skyline of Smithtown, NY

Smithtown is a hamlet and census-designated place in Suffolk County on Long Island's North Shore, known for its excellent schools, suburban character, and convenient access to New York City. With a median home price around $775,000, buying here is a significant investment, but several assistance programs can help. The Suffolk County HOME Down Payment Assistance Program offers up to $30,000 as a zero-interest forgivable loan, and Community Development Long Island (CDLI) provides low-interest loans up to $75,000 for down payment and closing costs. At the state level, SONYMA offers down payment assistance loans up to $15,000 (or $30,000 in targeted areas), and the FHLBNY Homebuyer Dream Program provides grants up to $30,000 through participating lenders. By combining county, nonprofit, and state programs, Smithtown buyers can potentially stack over $100,000 in assistance toward their home purchase.

Top Homebuyer Programs in Smithtown

Suffolk County HOME Down Payment Assistance Program
Type:
Deferred Loan
Amount:
Up to $30,000
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
LIHP Community Stabilization Program (CSP)
Type:
Forgivable Loan
Amount:
Up to $30,000
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. Most programs require household income at or below 80% to 130% of the Area Median Income depending on the program. The Suffolk County HOME DPA Program requires income at or below 80% AMI, while the CDLI loan allows up to 120% AMI.

  2. Step 2:

    Complete homebuyer education. Contact the Long Island Housing Partnership (LIHP) at (631) 435-4710 for free mortgage counseling and HUD-certified homebuyer education courses. CDLI also offers a required NeighborWorks homebuyer education program.

  3. Step 3:

    Contact the Suffolk County Office of Community Development at (631) 853-5705 or email ecodev@suffolkcountyny.gov to apply for the Suffolk County HOME Down Payment Assistance Program. You will need at least $3,000 in the bank at the time of application.

  4. Step 4:

    Reach out to Community Development Long Island (CDLI) at (631) 471-1215 to explore their down payment and closing cost assistance loan of up to $75,000.

  5. Step 5:

    Get pre-approved for a mortgage through a SONYMA-approved lender or an FHLBNY-participating bank or credit union such as Suffolk Credit Union. Ask your lender about layering the Homebuyer Dream Program grant with your first mortgage.

  6. Step 6:

    Find a home within program price limits. The Suffolk County HOME program caps the purchase price at $532,000 for existing homes and $555,000 for new construction. CDLI caps at $500,000. Homes above these limits may still qualify for state-level programs.

  7. Step 7:

    Submit your applications and work with your lender and housing counselor to coordinate funding from multiple sources. Expect the process to take 60 to 90 days from application to closing.

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