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Homebuyer Programs in Valley Stream, NY (2026)

Last updated April 2, 2026 | Population: 40,100 | Median home price: $800,000 | Est. closing costs: $16,000 - $24,000

Skyline of Valley Stream, NY

Valley Stream is a village in Nassau County on Long Island, located just east of the New York City border in the Town of Hempstead. With a median home price around $800,000, it is one of the more expensive markets on Long Island. The Nassau County HOME Down Payment Assistance Program offers up to $50,000 as a forgivable loan, though buyers should note the program has a maximum purchase price of $594,000 which is below the local median. The LIHP Community Stabilization Program provides up to $30,000 in forgivable assistance, and both CDLI and CDCLI offer low-interest down payment loans up to $75,000 for Nassau County buyers. Combined with SONYMA state mortgage programs and FHLBNY grants up to $30,000, eligible Valley Stream buyers have multiple avenues of assistance, though working with a housing counselor to identify homes within program price limits is especially important in this high-cost market.

Top Homebuyer Programs in Valley Stream

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
CDCLI Down Payment and Closing Cost Assistance Loan
Type:
Repayable Loan
Amount:
Up to $75,000
First-time only:
Yes
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
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 Nassau County programs require household income at or below 80% of Area Median Income, though CDLI and CDCLI programs extend to 120% AMI. The Nassau County HOME program has a maximum purchase price of $594,000, so finding eligible properties in Valley Stream requires careful searching.

  2. Step 2:

    Complete homebuyer education. Contact the Long Island Housing Partnership (LIHP) at (631) 435-4710 for HUD-approved mortgage counseling, which is required for the Nassau County HOME program. CDLI and CDCLI also offer NeighborWorks homebuyer education courses.

  3. Step 3:

    Get pre-approved for a mortgage. Work with a SONYMA-approved lender to explore state mortgage programs, or contact a local credit union like Nassau Financial Federal Credit Union about the FHLBNY Homebuyer Dream Program, which offers grants up to $30,000 for first-time buyers.

  4. Step 4:

    Apply for the Nassau County HOME Down Payment Assistance Program. Through LIHP, apply for up to $50,000 in forgivable loan assistance. You must put a minimum of $5,000 toward the down payment from personal funds. Note that this program has annual application cycles with specific deadlines.

  5. Step 5:

    Explore additional assistance. Apply to the LIHP Community Stabilization Program (up to $30,000) and contact CDCLI or CDLI about their low-interest down payment loans up to $75,000. If your employer participates, the LIHP Employer Assisted Housing Program may also provide $3,000 to $10,000 in matched contributions.

  6. Step 6:

    Find a home in Valley Stream within program guidelines. Work with your real estate agent to identify properties that fall within program purchase price limits. Some condos and co-ops may offer more affordable options than single-family homes.

  7. Step 7:

    Close on your new home. Your housing counselor and lender will coordinate the closing process, ensuring all assistance funds are applied correctly to your purchase.

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