FYI - The Keep the Dream Program stopped operating as of March 16, 2009.
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Are you already facing foreclosure? |
| If you are behind on your mortgage payments and need foreclosure prevention counseling, click here for a list of foreclosure counseling organizations that may be able to help you. |
Keep the Dream is a new program offered by the State of New York Mortgage Agency (SONYMA) designed to help eligible New York households with certain high-risk mortgages avoid possible foreclosure. The program enables families with adjustable rate, interest-only or other unconventional mortgages to refinance with the help of SONYMA and obtain a 30-year or 40-year fixed-rate mortgage at competitive interest rates. The program will provide at risk households with affordable and predictable monthly payments for the full term of the mortgage and remove the threat of losing their home.
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Interested in Becoming a
Participating Counseling
Agency?
Homeownership counseling is mandatory for homeowners who receive refinancing loans from SONYMA's Keep the Dream Program.
New York non-profit organizations can become participating Counseling Agencies if they have been certified by HUD or certified by DHCR as a participating Neighborhood Preservation Corporation (NPC) or a Rural Preservation Corporation (RPC).
Click here to learn how to become a participating agency.
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Who is Eligible
Borrowers are eligible if they can demonstrate that they have experienced a mortgage payment hardship or will experience a mortgage payment hardship in the near future. Generally, the program will help borrowers with adjustable rate or interest-only mortgages where the interest rate has just increased or will increase in the near future. Borrowers may also be eligible if they are less than 60 days behind on their mortgage payments because of higher payments due to an interest rate reset.
Eligible borrowers can have incomes up to 165% of the Area Median Income in New York City, Long Island and the counties of Dutchess, Orange, Ulster, Westchester, Rockland and Putnam and up to 125% of the Area Median Income for the rest of New York State. To find out the income limit in your county, click here.
Owners of one- to four-family homes, condominiums and cooperatives are eligible. Borrowers must live in the home being financed.
Current Interest Rates:
Download current program interest rates using Adobe Acrobat Reader.
Terms of Refinancing
A SONYMA Keep the Dream mortgage can have the following terms:
| Property Type |
Maximum Loan Amount |
Maximum Financing* |
| 1-Family, Condo, Coop |
$417,000 |
100% |
| 2-Family |
$533,850 |
97% |
| 3- and 4-Family |
$645,300 |
95% |
*Maximum financing is based on the current value of the borrower's property.
Proceeds of the mortgage can be used to pay prepayment penalties, closing costs and pay off most second mortgages. However, proceeds cannot be used to repay other debt or expenses.
Homeowner Education
All borrowers who qualify for a Keep the Dream mortgage will be required to complete a homebuyer education course with a federal- or state-approved not-for-profit organization. A list of eligible counseling agencies will be provided to applicants. Borrowers must also agree to participate in early delinquency intervention counseling should they become delinquent for 30 days or more on their refinanced mortgage. For a full list of eligible counseling organizations please click here.
Where to Apply
Lenders from around New York State will offer Keep the Dream mortgages. For a full list of participating lenders please click here.
Required Documents
To find out what documents are required to apply for a Keep the Dream mortgage, click here.
For answers to Frequently Asked Questions regarding the Keep the Dream program, please click here.