Buying a Home in New York is made affordable for low to moderate income individuals and families through many home buyer mortgage, down payment assistance and closing cost assistance programs provided by The State of New York Mortgage Agency - SONYMA - and its participating lenders. Depending on where you want to live, your income and cash situation, as well as your credit SONYMA may have the help you need to become a homeowner.
Low Interest Rate and Achieving The Dream Mortgage Loan Programs
If you are a first time home buyer in New York you may be eligible for either SONYMA’s Achieving The Dream Mortgage or the Low Interest Rate Program if you are planning on living in the home as your primary residence. These mortgages are low interest rate long term fixed rate mortgages and are available through participating lenders in New York State. You must be able to qualify for an FHA, VA, Rural Housing Service or conventional mortgage through Fannie Mae or Freddie Mac.
Qualifying for either mortgage through a participating lender will require you to meet certain credit underwriting standards such as a steady job, good credit history, income enough to make your mortgage payment as well your other expenses, some cash in the bank for down payment and closing costs.
Other Considerations For New York Home Buyer Mortgage Loan Programs
- Your income cannot exceed Household Income Limits for the area in the county where you are looking to purchase a home.
- The purchase price of the home you wish to purchase must also fall below the Purchase Price and Appraised Value limits for the area where you are looking to buy. Are you buying in a targeted area or not?
- You must attend a SONYMA approved home buyer education course if you are using the Achieving the Dream Mortgage Programs and in many cases for the Low Interest Rate Program
- You must have at least 1% down payment of your own money to be used in the purchase transaction
- Closing Cost Assistance is available for these program – See “Get Help With Closing Costs” section below for more information
- For specific property types, property uses, lot size restrictions contact a participating lender to discuss parameters around these qualifying factors.
- Home buyer applicants will be required to pay a Lock-in deposit of 1% of the loan amount at application. At loan closing, the 1% will be refunded to borrower or credited to the borrower's closing costs. The 1% will be refunded to the applicant if their loan application is denied.
- If you get an Achieving the Dream Mortgage, you are automatically covered by the HomeOpeners MonthlyPlus Mortgage Payment protection plan. This mortgage insurance protection plan covers your mortgage payment up to 6 months if you become involuntarily unemployed for more than 30 days.
Get Help With Closing Costs In New York State
SONYMA offers qualified home buyers using any mortgage program that they offer a Closing Cost Assistance Loan of up to $5,000 or 5% of the mortgaged amount whichever is higher. Closing Cost Assistance Loans are only allowed to cover closing costs associated with the loan and are not designed to cover any downpayment requirements of the first mortgage.
SONYMA’s Closing Cost Loans do not require a monthly payment and may have to be repaid if the home owner moves from the home, transfers the title (ownership) of the home, or refinances within ten years of getting the loan. After 10 years the loan is forgiven and no further balance is due on the loan.
Are There Other Mortgage Loan Programs From SONYMA?
SONYMA offers several other loan programs to meet the various home buying needs of its residents. The great feature of all of these loans is that they offer below market interest rates for qualified buyers.
- Remodel New York Program – This loan program provides qualified first time home buyers who want to purchase a home that needs renovation. With a Remodel New York Program, SONYMA will finance the purchase and most of the expenses for the renovation with one mortgage.
- Construction Incentive Program – This mortgage program is used in conjunction with new construction of one and two family homes in New York.
- Homes For Veterans – For Veteran residents of New York, no matter whether they are a first time home buyer or not, can use the Homes for Veterans Mortgage Loan Program to purchase a home.
- Energy Star Labeled Homes – This loan program provides incentives to those home buyers who decide to purchase an Energy Star Labeled Home. With this type of home loan program, the home buyer’s mortgage interest rate will be below market rates, the home owner typically will also be saving up to 30% on monthly utilities because of the energy efficiency construction of the home.
For all of these loans home buyers are required to meet all of the mortgage loan qualification requirements for an FHA, VA, Rural Housing Service, or Fannie Mae – Freddie Mac Conventional loan. These loans are offered by participating and SONYMA approved lenders.
To get additional information about down payment assistance programs, or to find out more about mortgage programs please complete the information below:
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