Interest Rate

Low Interest Rate Program


This page highlights the Low Interest Rate Program. Here are some of the program's features:    • Competitive fixed interest rate loans

   • No points

   • Financing of up to 97% of the value of the property for qualified borrowers and homes

   • A low minimum borrower cash contribution requirement of 1% of the value of the property

   • 120 day interest rate locks for existing housing and completed new construction

   • Term of 30 years only

   • No prepayments penalties

   • Down Payment Assistance of $3,000 or 3% of the home purchase price (not to exceed $15,000)  

Program Information

The Low Interest Rate Program provides qualified low and moderate income first time home buyers with low down payment mortgage financing on one to four family dwellings, including condominiums and cooperative apartments, as well as manufactured homes permanently attached to real property at competitive fixed interest rates.

Eligible Borrowers

Be a first time home buyer as defined by SONYMA. This requirement is waived for eligible military veterans and household members or for borrowers seeking to purchase a home located in a Federally designated Target Area.   • Meet SONYMA's credit underwriting standards.   • Applicants must have a steady job, good credit history, sufficient income, cash and savings to cover costs   • Meet SONYMA's Household Income Limit requirements   • Occupy the SONYMA-financed home as their permanent residence.  

*Note: If you currently own a residential investment or vacation home and you intend to retain ownership of the home, you will not qualify for SONYMA financing even if you are attempting to purchase a home located in a Target Area.

Requirements and Considerations

Property Requirements

  • The property must be located in New York State

  • Sales price and appraised value cannot exceed SONYMA's limits specific to this program, which vary by region 

  • The property cannot be used for business or commercial purposes

  • The property must be one of the following property types:

  • An existing or newly constructed single-family home (includes condominiums and co-ops)

  • An existing two-family home that is at least five years old and has been used only as a residence during the past five years

  • A two-family home located in a Target Area

  • The property cannot exceed five acres and must have a minimum of 500 square feet of living space

  • Purchasers of a condominium or co-op unit must satisfy certain special requirements.


Additional Considerations:

  • Applicants must complete a homebuyer education course

  • All loans with less than a 20% down payment will require Private Mortgage Insurance (PMI)

  • Borrowers may be subject to a reimbursable recapture tax. 

  • Funds are limited and available on a first-come, first-served basis

  • Anyone who plans to use more than 15% of their home for business or commercial purposes is not eligible for financing

  • Both units in a two-family home must be located in the same building

  • Properties with units in more than one building are not allowed

  • SONYMA mortgages are non-assumable and cannot be used to refinance an existing mortgage

  • All loans must be approved for pool insurance by SONYMA's mortgage pool insurer