OVERVIEW

Home loans are not “one size fits all,” because everyone’s needs are different. That’s why SONYMA offers a variety of low-interest mortgage loans for eligible homebuyers. Find the right program to meet your needs. 

 

Please feel free to call 800-382-HOME or click here to connect with the SONYMA team, or contact a participating lender to learn more about your next steps.

Llame al 800-382-HOME o haga clic aquí para ponerse en contacto con el equipo de SONYMA, o póngase en contacto con un banco hipotecario participante para obtener más información sobre sus próximos pasos.

Down Payment Assistance Loan

One of the biggest financial hurdles faced by potential homeowners is the down payment and closing costs. SONYMA’s Down Payment Assistance Loan (DPAL), which is available for all buyers using a SONYMA mortgage program, can provide the initial funding you need to purchase your first home.

If you are required to carry mortgage insurance, a DPAL can be used to cover all or a portion of your premium, which can reduce your monthly mortgage payment significantly.

 

Down Payment Assistance Loan Benefits
  • 0% interest rate
  • No monthly payments
  • Forgiven after 10 years
  • Minimum loan amount: $1,000
  • Maximum loan amount: 3% of the purchase price (up to $15,000) or $3,000, whichever is highest

 

Other Important Information About DPALs
  • A Down Payment Assistance Loan cannot exceed your actual down payment and/or closing costs.
  • Interest rates for first-time mortgages with a DPAL 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.
  • All or a portion of your Down Payment Assistance Loan may be required to be repaid if you sell your home or refinance your mortgage within the first 10 years of purchase.  The amount subject to possible repayment will decrease by 1/120 per month each month you live in the property.  In the event the proceeds from the sale of your home is not enough to pay any repayable amount, the shortage will be forgiven.
  • 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).
  • DPALs 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 DPAL, except in special circumstances.
  • SONYMA will not allow your DPAL to be subordinate to another mortgage.

 

Please remember that not all participating SONYMA lenders offer DPALs. Contact your preferred lender to be sure. Or, view our list of participating SONYMA lenders to find a lender near you.

 

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Repayable Second Lien

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. 

 

Repayable Second Lien (RSL) 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: $1,000
  • Maximum loan amount: 5% of the net purchase price
 
Other Important Information About RSLs
  • 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 to be sure. Or, view our list of participating SONYMA lenders to find a lender near you.

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RemodelNY

Not every house is perfect. Some need a little TLC, and some need a lot. But paying for those repairs—even minor ones—can add up fast. The SONYMA RemodelNY program provides mortgage financing options that let you purchase a property and pay for repairs to turn that almost-perfect house into your perfect home.

 

RemodelNY Benefits
  • Available under our Low Interest Rate and Achieving the Dream programs at the same interest rate
  • May be combined with the Homes for Veterans enhancement program

 

Eligible home improvements include
  • Structural alterations and reconstruction, like finishing a basement, repairing chimneys, and adding garages
  • Remodeling kitchens and bathrooms
  • New free-standing appliances
  • Eliminating health and safety concerns
  • Aesthetic changes, like new siding or paint
  • Plumbing updates
  • Roofing, gutters, and downspouts
  • Flooring
  • Energy conservation updates
  • Major landscaping and site improvements
  • Elevating the home, filling in below grade space or raising mechanicals to lower flood insurance premiums

 

RemodelNY financing is available for existing 1-4 family homes. Planned Unit Developments (PUDs) and condominiums also are eligible, provided the Homeowners Association approves of the proposed renovations.  

 

Download this pdf to get more details now about the Remodel NY program, loan terms, eligibility requirements, and more.

 

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Homes for Veterans

Homeownership is the American dream. But for those who protect and serve our country, that dream can be difficult to make a reality. At SONYMA, we believe in helping our veterans and active service members achieve that dream through low-interest mortgage products designed to make homeownership easier than ever before.

 

Homes for Veterans Benefits
  • Exclusively for active service members, veterans, and their spouses or co-borrowers
  • US Military veterans with an other than dishonorable discharge do not need to be first time homebuyers
  • Also applies to active or honorably discharged members of the National Guard and reservists
  • Interest rates 0.40% lower than standard SONYMA interest rates for loans with down payment assistance.
  • Down Payment Assistance Loans are available with this program for up to $3,000 or 3% of the purchase price (not to exceed $15,000), whichever is higher.
  • Minimum borrower cash contribution is only 1%; the remaining 2% can come from a gift or other acceptable source
  • No points

 

Requirements
  • You must be either a U.S. military veteran or active duty serviceperson and be able to provide the following documentation with your application:
    • DD214 – Certificate of Release or Discharge from Active Duty or NGB Form 22 – Report of Separation and Record of Service
    • Leave and Earning Statement (required for all active duty U.S. military personnel)
    • Military ID Card (required for ALL active duty U.S. military personnel)
  • Military Veteran's Eligibility Affidavit (SONYMA Form 243) is required only if an eligible veteran or their spouse or co-borrower is not a first-time homebuyer

 

To apply for a SONYMA loan, you must work with one of our participating lenders. Have a look at SONYMA's participating lender list to find the one that’s right for you.

 

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Graduate to Homeownership

The time right after graduation from college is exciting, with new opportunities and the rest of your life ahead of you. Now imagine starting that new life with a home of your own. The Graduate to Homeownership program offers recent college graduates low-interest mortgages, down payment assistance, and homebuyer education resources to purchase their first home in certain upstate New York communities. 

 

Graduate to Homeownership Benefits
  • Competitive 30-year fixed interest rates
  • May be combined with other SONYMA grants and assistance programs, such as:
    • Down Payment Assistance Loans to help with your down payment
    • Remodel NY for funds to help with repairs and remodeling

 

Eligibility
  • Available for first-time homebuyers who have received an associate, bachelor’s, master’s, or doctoral degree within the past 48 months from an academic program recognized by the U.S. Department of Education
  • You must have good credit, stable employment, and be able to make monthly mortgage payments
  • You must occupy the property as your primary residence
  • Regional income limits apply and vary by county

 

Available Communities

To qualify for the Graduate to Homeownership program, you must buy a house in one of these communities. Use the links below to go directly to individual community pages on www.ny.gov and learn more.

 

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Credit Is Due

The Credit Is Due program is offered in collaboration with lenders who have chosen to develop a Special Purpose Credit Program (SPCP). SPCP's are established by regulation to address disparities in lending. By partnering with lenders who have demonstrated a commitment to addressing such disparities, the agency intends to amplify the impact of such efforts and leverage the strengths of both institutions. 

The program offers several benefits to eligible applicants:

Key Features:
  • SONYMA offers competitive, 30-year, fixed-rate mortgages with a 120-day rate lock period.
  • Interest rate 1.5% below SONYMA standard programs.
  • May utilize any SONYMA down payment assistance program, including DPAL and Repayable Second Lien (RSL).
  • No cash reserves required, except under certain circumstances such as when purchasing a 2-4 family home or when unable to demonstrate a history of on-time rental payments.
  • Additional funding sources can be combined with other grants and subsidies.
  • Only 1% borrower contribution required, for most property types.
  • Property type options are 1-4 family homes, coops, condos and manufactured homes.
  • Borrowers need to occupy the property as their primary residence, however, non-occupant co-borrowers are permitted.
  • Allows for non-traditional and fluctuating income sources and financial support from family, friends and community.
  • Allows for flexibility on credit review, using Give Us Credit underwriting guidelines including, but not limited to:
    • Permits no trade-lines on credit reports, under certain circumstances, such as proof of rental payment history.
    • Allows for some late payments, under certain circumstances.
    • Offers shorter post-foreclosure and post-bankruptcy
      waiting periods.

 

Interested in applying for a SONYMA Credit Is Due Loan? Contact one of our SPCP Participating Lenders for more information or contact us directly for a referral:
Phone: (800) 382-4663
Email: [email protected]

 

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ENERGY STAR®

ENERGY STAR® certified homes include energy efficient features that deliver better performance and greater comfort while reducing utility bills by as much as 30% when compared to standard homes. To help you find a more energy efficient home, SONYMA is partnering with the New York State Builders Association (NYSBA), the New York State Energy Research and Development Authority (NYSERDA), and the Long Island Power Authority (LIPA) to offer special incentives for purchasing an Energy Star certified home.

 

Benefits
  • Interest rates 0.40% lower than standard SONYMA interest rates for loans with down payment assistance
  • Available with down payment assistance of $3,000 or 3% of the home purchase price (not to exceed $15,000)
  • No points

 

Eligible properties
  • Newly constructed single-family homes
  • Newly constructed two-family homes located in a designated Target Area

 

Learn more SONYMA’s ENERGY STAR® program features and requirements now.

 

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Manufactured Home Loan Program

The State of New York Mortgage Agency (SONYMA)’s loan programs offer qualified low- and moderate- income homebuyers affordable financing on manufactured homes that are permanently affixed to a foundation.

Loans can be used to:

  • Finance the purchase of a new or used manufactured home
  • Site the home on leased land in a community, land you own, or land you would like to purchase
  • Refinance debt on your existing manufactured home

 

Features and Benefits
  • 30-year fixed rate loan
  • No points
  • Down payment requirement as low as 3% (and 3% down payment assistance available)
  • Minimum cash contribution of 1%
  • No prepayment penalties
  • 120-day interest rate locks
  • Can be combined with other SONYMA special features
  • Other grants and subsidies can be included with no limit

 

Interested in applying for a SONYMA loan to purchase a manufactured home or refinance debt on your existing manufactured home?

 

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