Low Interest Rate Program

SONYMA’s low interest rate program offers lower down payment requirements and competitive interest rates to qualified buyers. This program allows for the purchase of 1-4 family homes, condominiums, cooperatives, and manufactured homes.

Low Interest Rate Program Features and Benefits

• 30-year fixed rate mortgage
• No points
• Down payment requirement as low as 3% (and 3% down payment assistance available)
• Minimum cash contribution of 1% (3% for co-ops)
• Available for 1-4 family homes, cooperatives and condominiums
• No prepayment penalties
• 120-day interest rate locks for existing housing
• 240-day interest rate locks for properties under construction or rehabilitation, cooperatives or distressed sales
• Can be combined with other SONYMA special features
• Other grants and subsidies can be included with no limit

Interest Rates

Individual Requirements

• You must be a first-time buyer (unless you are an eligible military veteran or purchasing a home in a Target Area)
• You will need good credit, stable employment, and the ability to make mortgage payments while still meeting prior debt obligations
• You must occupy the property as your primary residence
• You will need either 1 or 3% of the purchase price (depending on which type of property you’re purchasing) in verifiable cash, savings or other assets
• Regional income limits apply and vary by county

• The property must be located in New York State
• Sales price cannot exceed SONYMA's limits specific to this program, which vary by region
• Agricultural use not permitted.
• The property must be one of the following property types:
  • An existing or newly constructed single-family home (includes condominiums and co-ops)
  • Two , three , or four family home that is at least five years old as of the SONYMA loan application date and has been used only as a residence during the past five years
  • A two-family home located in a Target Area (must be either newly constructed or constructed within the five years prior to your loan application)
  • The property cannot exceed five acres and must have a minimum of 500 square feet of living space (exceptions may be made on a case-by-case basis)
• Purchasers of a condominium or co-op unit must satisfy certain special requirements.

Note: You will not qualify for SONYMA financing if you currently own a residential investment property or vacation home and intend to retain ownership.

• 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
• All of the units in a two- to four-family home must be located in one building. Properties with units in separate building structures 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

Learn more about SONYMA’s application process and what you can do to be prepared.