Overview

Accruing enough assets to close on a new home is one of the largest barriers to homeownership. To address that need, SONYMA offers an interest-free, deferred payment second mortgage loan called Repayable Second Lien (RSL). This loan is designed to help low- and moderate- income New Yorkers achieve their homeownership dream. It is available with any SONYMA first lien.

RSL may be used to pay down payment and closing costs up to 5% of the net purchase price. This second lien may also be used to pay single premium mortgage insurance (MI) for transactions over 80% LTV. For more information, please see the RSL Term Sheet.

Interest rates for first-time mortgages with an RSL attached will be 0.40% higher than mortgages without. This higher interest rate does not apply to our Graduate to Homeownership, Homes for Veterans, or ENERGY STAR® programs. 

Program Benefits

  • 0% interest rate
  • No monthly payments
  • Must be paid off
    • upon sale of property; or
    • if first mortgage is refinanced; or
    • if the first mortgage is paid off
  • Minimum loan amount: $3,000
  • Maximum loan amount: 5% of the net purchase price

For more information, please see the Repayable Second Lien (RSL) Term Sheet.

Additional Considerations

A Repayable Second Lien (RSL) cannot exceed your actual down payment and/or closing costs.

Interest rates for first-time mortgages with a RSL attached will be 0.40% higher than mortgages without. This higher interest rate does not apply to our Graduate to Homeownership, Homes for Veterans, or ENERGY STAR® programs.

Regardless of which SONYMA program you apply for, you must make a minimum cash contribution of 1% of the value of the property (3% for cooperatives and 3- and 4-family properties).

RSLs may only be used in conjunction with a SONYMA mortgage and may be used for any property type eligible under your chosen mortgage program, including cooperatives.

Cash back at closing is not allowed with a RSL, except in special circumstances.

SONYMA will not allow your RSL to be subordinate to another mortgage, or home equity line of credit.

Please remember that not all participating SONYMA lenders offer RSLs. Contact your preferred lender, or view our list of participating SONYMA lenders to find out more.