Multifamily Credit Enhancement Term Sheets

All NYSHFA bond financed mortgages must be secured by a form of credit enhancement.  Credit enhancement provides security for the holders of Agency bonds and impacts the bond rating.  A higher rating translates into a more favorable bond interest rate and ultimately a lower mortgage rate. 

These are NYSHFA's Credit Enhancement Programs:

• Third Party Credit Enhancement Program
  This is the credit enhancement program to use in developing a multifamily project under The 80/20 Program.  It can also be utilized with any of the other Agency bond financing programs. 
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• SONYMA Mortgage Insurance Fund Credit Enhancement Program
  Typically used in connection with fixed rate bond financings of affordable multifamily housing financings of between $1 million and not more than $20 million.
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• FHA/Risk Share Credit Enhancement
  Financings are limited to not more than $10 million under this program.
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