SONYMA Home Buying Assistance - Hudson Valley NY

State of New York Mortgage Agency, SONYMA, offers 5 unique programs to help in your quest to become a first-time homeowner, all of which offer below market interest rates, a low down payment, no prepayment penalties and assistance with closing costs. These 5 programs are:

1. Low Interest Rate Program: A standard mortgage loan for first-time homebuyers
2. Remodel New York: A program that offers a below market fixed-rated mortgage to first-time homebuyers who purchase a home with the intent of renovating
3. Achieving the Dream: Offers low interest rates to lower-income first-time homebuyers
4. Construction Incentive Program: A program that offers 100% financing to first-time homebuyers who purchase a home under construction or rehabilitation
5. Homes for Veterans: Specifically designed for military veterans, this program allows qualified veterans to apply for any SONYMA program with added favorable terms

Both the Construction Incentive Program and Achieving the Dream offer additional savings to homebuyers who purchase new energy efficient homes according to the New York ENERGY STAR Labeled Homes program.

Am I eligible?

Each of the 5 programs have specific requirements according the type of loan. Please see NY Homes for details on each. In order to qualify for any of SONYMA's programs, you must:

• Have a 2 year history of a reliable, verifiable source of income prior to applying for a loan
• Have a credit history proven to qualify you for a home loan
• Have the ability to afford all projected costs of homeownership as well as any current debt payments
• Have the ability to afford a downpayment and closing costs
• Be a first time homebuyer
• Occupy the SONYMA-financed home as your primary residence

Just as you must meet the above requirements in order to qualify for a SONYMA loan, so does the house you are seeking to purchase. In order to qualify, a home must:

• Be located in New York State
• Not be used for commercial or business purposes
• Be a maximum of 5 acres
• Have a minimum of 500 square feet living space
• Be an existing or newly constructed single family home, or
• Be a 2, 3 or 4 family unit at least 5 years old and has been used solely as a residence during the past 5 years, or
• Be a 2 family home at least 5 years old and located in a Target Area*
• Have a sale price that does not exceed the Purchase Price Limits**

* A Target Area is a tract of land which has been designated by the Federal government as economically distressed. Call about purchase price limits.

How does it work?

Each of SONYMA's 5 programs are designed to give assistance to first-time homebuyers , and is financed through the sale of tax exempt bonds.

Are there any alternatives?

If you are not a first-time homebuyer, you may still qualify for a SONYMA loan if you seek to purchase a home in a Targeted Area.

Do I really need this type of loan?

If you qualify according to the above requirements it is recommended that you choose a SONYMA loan, as the SONYMA programs can make purchasing your first home a feasible option. If, however, you can afford a conventional mortgage and downpayment, you may want to consider other options through your local lender.