FAQ

SONYMA provides below market interest rate mortgages, low down payment requirements, and down payment assistance for first-time home buyers. Our loans increase purchasing power and will assist more of your clients to become first-time home owners.

Your clients will benefit from:

• Rates typically one-half to one percentage point below the conventional market for 30 or 40 year fixed-rate mortgages;
  
  
• 97% financing with as little as 1% borrower contribution;
  
  
• Down Payment Assistance up to the higher of: $3,000 or 3% of the home sales price amount (not to exceed $10,000);
  
  
• Flexible underwriting guidelines with no pricing adjustments, and;
  
  
• Job loss protection for eligible borrowers (click here to learn more about this product).

SONYMA offers a variety of programs for eligible applicants. All of our programs feature competitive interest rates and the availability of down payment assistance. The programs we offer are:

• Low Interest Rate Program - SONYMA's standard mortgage program for first-time homebuyers* offers 97% financing at a competitive interest rate. (Click here for more information on the Low Interest Rate Program.)
  
  
• Achieving the Dream Program - Features 97% financing and a lower interest rate than most SONYMA programs. Available to lower income first-time homebuyers. (Click here for more information on the Achieving the Dream Program.)
  
  
• Construction Incentive Program - Specifically for newly constructed housing program. Features 97% financing. (Click here for more information on the Construction Incentive Program.)
  
  
• Remodel New York Program - SONYMA's purchase/renovation program offers first-time homebuyers* 97% financing for the purchase and renovation of an existing home. (Click here for more information on the Remodel New York Program.)

Down payment assistance is available to all SONYMA borrowers applying for any of these programs. (Click here for more information on SONYMA's Down Payment Assistance Loan.)

*Applicants do NOT have to be a first time homebuyer to be eligible for this program if the home they are buying is located in a Target Area.

SONYMA makes it program funds available through the issuance of tax-exempt bonds. This permits SONYMA to offer low interest rate mortgage loan financing to New Yorkers. To maintain the tax-exempt status of our bonds, all loans, borrowers, and properties must comply with certain Federal laws and regulations. Most of the additional forms required by SONYMA are due to these laws and regulations.

Depending on the program, eligible property types are:

• Existing or newly constructed one-family homes (including condominiums, PUDs, homeowners's associations, and cooperatives);
  
  
• Existing two- , three- , or four-family homes that are at least five years old as of the loan application date and have been used only as a residence during the past five years, or;
  
  
• Two-family homes located in a Target Area that are newly constructed or were constructed within the five years prior to the SONYMA loan application date.

Eligible properties must:

• Be located in New York State;
  
  
• Have a sales price that does not exceed SONYMA's Purchase Price Limits (click here to see Purchase Price Limits for your area);
  
  
• Not be used for any business or commercial purpose;
  
  
• Be a maximum of 5 acres (exceptions can be made on a case-by-case basis);
  
  
• Have at least 500 square feet of living space, and;
  
  
• Meet SONYMA's project requirements, if a condominium or cooperative. (Click here to see the project requirements for condominiums and cooperatives.)

Eligible applicants must:

• Meet SONYMA's credit underwriting guidelines (SONYMA accepts most decisions from Fannie Mae's Desktop Underwriter® and Freddie Mac's Loan Prospector®.);
  
  
• Contribute a minimum of 1% (3% on cooperatives) of their own funds into the transaction;
  
  
• Be a first time homebuyer (have not had an ownership interest in his/her primary residence at any time during the three years prior to the date of the SONYMA mortgage application AND does not currently own a vacation or investment home). (See the related question below.);
  
  
• Meet SONYMA's Household Income Limits (click here to find the Household Income Limits for your area);
  
  
• Occupy the SONYMA-financed home as his/her permanent residence; and
  
  
• Not use more than 15% of his/her current residence for business or commercial use.

Yes, SONYMA is allowed to waive the requirement for eligible United States military veterans (and their spouse or co-borrower) who:

• Served in active military, naval, or air service.
• Has been discharged or released from his/her military duties under conditions other than dishonorable.

SONYMA also provides special incentives for applicants purchasing homes in Federally designated target areas. The incentives are:

• The first-time homebuyer requirement is eliminated;
  
  
• Household Income and home Purchase Price Limits are higher than for other areas (click here to see Household Income and Purchase Price Limits for your area), and;
  
  
• Two-family homes that are newly constructed or are less than 5 years old are eligible for financing.

To find out if a property is located in a Target Area, call SONYMA's Information Center at 1-800-382-HOME (4663) with the exact street address, city or town, and zip code.

Note: These exceptions do not apply to the Achieving the Dream Program.

Most SONYMA borrowers can have peace of mind by knowing that if temporary involuntary unemployment prevents them from making their monthly mortgage payment, coverage is provided at no additional cost.

Note: HomeOpeners® MonthlyPlus is only available to Low Interest Rate and Achieving the Dream Program borrowers who obtained PMI insurance through Genworth Mortgage Insurance Corporation.

This coverage pays up to $2,000 per month towards the borrower's monthly mortgage payment (including principal, interest, taxes and insurance) if either the borrower or co-borrower becomes involuntarily unemployed for more than thirty (30) days.  Up to six (6) monthly payments will be made. The payment would be made to the mortgage servicer.

Note:  If more than one borrower, a proportionate benefit is paid.