Home Purchase Loans on Long Island and Across Downstate New York

I help buyers finance a home on Long Island and across downstate New York, comparing options from the lenders I work with.

A home purchase loan is a mortgage used to buy a home, with the home itself as the security. On Long Island, the loan runs alongside the contract of sale, your attorney’s review and the closing.

Who this guide is for

It’s for first-time buyers who want the whole picture before touring, move-up buyers who have to buy while selling, buyers new to Long Island and veterans comparing VA with other options.

Pre-qualification vs. pre-approval

The Consumer Financial Protection Bureau (CFPB) says prequalification and preapproval letters both state how much a lender is willing to lend, up to a set amount and based on certain assumptions, and that neither is a binding loan offer. Some lenders prequalify on unverified information you report and preapprove only after checking documents. When I help with a pre-approval, I start from your documents (income, assets and credit) rather than estimates. The credit part is only a soft credit check, so it won’t affect your score. Two more CFPB points: a preapproval letter can carry an expiration date, typically 30 to 60 days, and getting one doesn’t commit you to that lender, so compare official Loan Estimates before you choose. If you plan to shop in spring, my guide to the best time to buy a house on Long Island explains why it helps to start your pre-approval in January or February.

Check your credit first. The FTC says you can get a free report from each nationwide credit bureau once a week at AnnualCreditReport.com. If something needs attention, see my guide to buying a house with a low credit score on Long Island.

Want a price range before you ask for a pre-approval letter? Run your income, debts and a real tax bill through my calculator for how much house you can afford on Long Island.

Choosing your loan: FHA, conventional, jumbo or VA

A Long Island home purchase is usually financed with a conventional, jumbo, FHA or VA loan, and your price, credit, cash and any military service decide which one fits. My overview of Long Island mortgage loan programs goes deeper.

Because the local conforming limit sits above the $832,750 national baseline, a loan between the two can still be conforming (the CFPB calls it a “conforming jumbo”). See conventional and jumbo loans, FHA loans and VA loans on Long Island.

Separately, I offer private down payment assistance programs available through lenders I work with; they are not state, county or town programs and are not affiliated with or endorsed by any government agency. Terms, eligibility and availability vary by program and lender, are subject to credit, income, property and underwriting guidelines, and can change or end without notice; not everyone will qualify. See how down payment assistance works on Long Island.

Buying before you sell

Selling a home at the same time? Lenders may count payments on both homes until your sale is far enough along. My guide to bridge loans on Long Island explains the Fannie Mae rule and how owners cover the gap. After the sale, you may be able to recast your new mortgage with the proceeds and lower the payment. Downsizing at 62 or older? A HECM, the FHA-insured reverse mortgage, can also help you buy your next home; see buying a home with a reverse mortgage.

This page is not from HUD or FHA and was not approved by HUD or any government agency.

Long Island prices and your loan amount

Per OneKey MLS, Nassau’s single-family median reached $911,000 in August 2026, 4.7% above a year earlier, while Suffolk’s rose 7.0% to $760,000 (published September 22, 2026). One line matters at these prices: a one-unit conventional loan above $1,209,750 is a jumbo. See Nassau and Suffolk home prices by month, and test budgets with the mortgage payment calculator.

Your attorney, the contract and the mortgage commitment

In New York, the buyer and the seller typically each hire their own real estate attorney, so plan on hiring yours. The New York Attorney General advises buyers to have their own attorney review all contracts and loan documents before signing, and says it is not a good idea to use an attorney provided by the seller or the lender.

Sign the contract of sale only once your attorney has reviewed it and you understand it, and send me the draft early, because the price, contract deposit, seller credits and any as-is language all affect the loan. The Attorney General also recommends an independent inspection by someone you choose, with a contract right to cancel if you are not satisfied.

Many contracts include a mortgage contingency tied to getting a written loan commitment by a set date; your attorney negotiates its terms. After appraisal and underwriting, the lender issues a commitment, usually with conditions to clear before closing.

Houses, condos and co-ops

Houses

One- to four-family homes can work with conforming, FHA or VA financing, and conforming limits rise with units, up to $2,326,875 for four. Planning to count rent from another unit? Tell me early, and confirm with the town that it is legal.

Condos

The building is reviewed as well as you. HUD keeps a searchable list of FHA-approved condo projects, and VA.gov says a VA-backed purchase loan can be used to buy a condo in a VA-approved project. Send me the building name before you offer.

Co-ops

Per the Attorney General, a co-op buyer purchases shares in a corporation, allocated to a specific apartment, that come with a long-term proprietary lease, and Fannie Mae’s Selling Guide sets separate eligibility rules for co-op share loans. My guide to buying a co-op on Long Island covers the share loan, the lender’s building review, board approval and the board deadlines in Nassau, Suffolk, New York City and Westchester.

The appraisal

The lender orders an appraisal to confirm the home’s value supports the loan. If the value comes in below the price, Fannie Mae measures the loan-to-value ratio against the lower of the price or the appraised value, and VA caps its loan at the lower of the two. Buyers then often renegotiate, add cash or use their contract rights, so ask your attorney early how the contract handles a low appraisal.

Closing costs to budget for in New York

New York closing costs come on top of your down payment, and your Loan Estimate, your attorney and the title company give the exact figures. Plan for:

• Attorney fees for the contract and the closing.
• Title insurance. The NYS Department of Financial Services says the buyer generally pays for both policies: the lender’s, usually equal to the loan amount and declining as it is paid down, and the owner’s, up to the full price and not declining.
• Closing taxes. New York charges a mortgage recording tax when your mortgage is recorded, and some buyers owe other state or local taxes at closing; your closing attorney confirms which apply to your purchase.
• Loan costs, appraisal and inspection, plus homeowners insurance and, on many loans, an escrow deposit for taxes. Co-op buyers add monthly maintenance.

Property taxes vary from house to house. My guides to buying in Nassau County and buying in Suffolk County explain how assessments and grievances work in each. Ask for the current tax bill. If it shows a STAR exemption, that’s the seller’s, and it won’t stay past your first year. New owners register with the state for the STAR credit, a check or direct deposit that comes around school tax time. Your attorney or a tax professional can advise on your situation.

How to get a home mortgage on Long Island, step by step

1. Talk through your numbers and compare programs.
2. Get pre-approved on verified documents. It takes only a soft credit check, so your score isn’t affected. To see exactly what to gather, use my mortgage document checklist and check what applies to you, like gift funds or a co-op purchase. Self-employed? See how lenders count self-employed income.
3. Shop inside the numbers, checking any condo or co-op building before you offer.
4. Make an offer. Your attorney reviews the contract while you arrange an independent inspection.
5. Sign the contract, complete the application and review your Loan Estimate.
6. Appraisal and underwriting. Answer document requests quickly.
7. Commitment. We clear conditions while your attorney works through title and contract dates; co-op buyers also complete the building’s board process.
8. Close after reviewing the final figures with your attorney.

I’m a mortgage loan originator at Scott Capital Group. I arrange your purchase loan with one of the lenders I work with. From pre-approval to closing day, we can handle the mortgage side.

What to avoid before closing

Between contract and closing, avoid new debt, money moves you can’t document, and letting pay stubs or pre-approval letters go stale. The Attorney General also advises making sure you and your attorney understand and agree with any last-minute changes in the documents before you close. My Long Island first-time home buyer guide covers the documents and habits in detail.

Buying a home in New York City, Westchester, Rockland or Putnam

The steps on this page work the same way in New York City, Westchester, Rockland and Putnam, and so do the 2026 one-unit limits: $1,209,750 conforming and $1,249,125 FHA (see my New York loan limits by county).

Buying in Brooklyn, Queens, Staten Island, Manhattan or the Bronx

Two- to four-family houses, common in Queens, Brooklyn, Staten Island and the Bronx, can be bought with a conventional loan, or with FHA or VA if you live in one unit. Many Manhattan apartments are co-ops, which need a lender that finances shares in that building, plus board approval; my co-op loan guide explains both. Closing taxes in the city work differently from Long Island’s, and co-ops have their own rules; ask your attorney which apply.

Buying in Westchester, Rockland or Putnam

Tax bills run high here too, so budget on the current bill. Co-ops are common in Yonkers, White Plains and New Rochelle; send me the building name before you offer.

Frequently asked questions

Sources

1. CFPB, What’s the difference between a prequalification letter and a preapproval letter?
2. CFPB, Get a preapproval letter.
3. FTC, Free Credit Reports.
4. FHFA, FHFA Announces Conforming Loan Limit Values for 2026.
5. FHFA, 2026 conforming loan limits, full county list (spreadsheet).
6. FHFA, Conforming Loan Limit Values FAQs (updated November 2025).
7. CFPB, Conventional loans, and What is a jumbo loan?
8. HUD, FHA Mortgage Limits lookup (FHA Forward, CY2026, Nassau, Suffolk, the five boroughs, Westchester, Rockland and Putnam, NY).
9. HUD, FHA Myths v Facts.
10. HUD, Mortgagee Letter 2023-05, Reduction of FHA Annual MIP Rates.
11. HUD, FHA Condominiums.
12. VA.gov, Eligibility for VA home loan programs.
13. VA.gov, VA home loan limits.
14. VA.gov, VA-backed purchase loan.
15. Fannie Mae, Selling Guide B3-6-06, Qualifying Impact of Other Real Estate Owned.
16. Fannie Mae, Selling Guide B2-1.2-01, Loan-to-Value (LTV) Ratios.
17. Fannie Mae, Selling Guide B4-2.3-04, Loan Eligibility for Co-op Share Loans.
18. OneKey MLS, Footprint Round-Up, September 22, 2026 (August 2026 data).
19. New York Attorney General, Homeowners.
20. New York Attorney General, Cooperatives, and Before You Buy a Co-op or Condo.
21. NYS Department of Financial Services, Title Insurance.
22. NYS Department of Taxation and Finance, STAR eligibility.
23. NYS Department of Taxation and Finance, School Tax Relief (STAR) frequently asked questions.