Q: I currently hold an MCC issued by SONYMA. Can I refinance my mortgage and still keep the MCC?
A: If you currently hold an MCC and you decide to refinance your home with a fixed rate mortgage, SONYMA will need to reissue your Mortgage Credit Certificate (equal to the lesser of the original loan amount or the new loan amount) to be used during the lifetime of your new loan. The new certificate must be issued within one year of refinancing the residence.
In order for SONYMA to reissue the MCC, you will need to supply the Agency with the following documents:
Copy of original certificate or reissued certificate
Copy of new note
Copy of original note
Copy of most recent year's federal tax return
Copy of new Settlement Statement
Current telephone number
In accordance with regulations in IRS Publication 530, the above requirements for a reissued MCC will:
Replace the existing certificate
Show credit rate used to calculate credit
Show the certified indebtedness amount
Submit all documents to the address listed below:
State of New York Mortgage Agency
641 Lexington Ave.
Attn: Olivia Jervis / 2nd Floor
New York, NY 10022
Q: What is the Federal recapture tax?
A: Homebuyers receiving a Mortgage Credit Certificate are subject to a "recapture" tax imposed by the IRS if you sell or otherwise dispose of your home within 9 years of purchasing it. For more information, click her see the IRS's website.
Q: When does the Federal recapture tax apply?
A: You are required to pay Federal recapture tax if all of the following three conditions apply:
You sell or otherwise dispose of your home within the first nine years;
You make a net profit on the sale; and
In the year you sell your home, your household income increased more than the IRS pre-established amount.
When you purchased your home, your lender and SONYMA provided you with sample worksheets, which included how much your household income would have to exceed for you to incur any recapture tax liability. If you sell or otherwise dispose of your home within 9 years, you must complete IRS Form 8828 ("Recapture of Federal Mortgage Subsidy") to determine if you owe the Federal recapture tax. To download IRS Form 8828, click here. To download the Instructions to Form 8828, click here.
Q: Will I be subject to the Federal recapture tax if I refinance my mortgage?
A: No. However, if you later sell your home less than nine years from the original purchase date and meet the conditions described above, the Federal recapture tax may be due.
Q: If I owe Federal Recapture Tax, to whom do I pay it and when?
A: Any recapture tax is paid to the IRS when you complete your Federal income tax return for the tax year in which you sold your home. For example, if you sold your home in 2007, you would pay the tax when you file your 2007 Federal income tax return.
Q: Will SONYMA reimburse me for any Federal recapture tax that I pay?
A: Yes - SONYMA will reimburse you for any portion of the recapture tax.
Q: Does SONYMA's "Federal Recapture Tax Reimbursement" program mean I do not have to pay the Federal recapture tax?
A: No. You are still responsible for accurately paying any and all taxes to the IRS. SONYMA will reimburse you for the actual amount of the Federal recapture tax you owe and paid.
Q: What are the guidelines to be eligible for reimbursement?
A: To be eligible for SONYMA reimbursement for any Federal recapture tax you paid, the following must apply:
You received a Mortgage Credit Certificate from SONYMA and
You must submit the request for reimbursement no later than December 31st of the year the Federal Recapture Tax is owed and paid. For example, if you home is sold in 2009, the tax return is filed in 2010. The request for reimbursement must be submitted no later than December 31, 2010.
Q: How do I apply for reimbursement?
A:It's simple:
Fill out the SONYMA's "Request for Recapture Tax Reimbursement" form and provide a signed copy of your Federal tax return, including completed IRS Form 8828, which has been filed showing payment of the Federal recapture tax.
Proof those taxes have been paid, such as a copy of a cancelled check or bank statement (if any tax was owed the IRS).
A completed and signed IRS Form 4506-T, Request for Transcript of Tax Return.
A copy of your HUD-1 Settlement Statement showing the sale of your home.
Forms to apply for reimbursement for applying for reimbursement are linked above.
Q: How do I know which lending program to choose? A:
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.)
Remodel New York Program - The RemodelNY Escrow option provides competitive interest rate financing to qualified first time homebuyers for the purchase and renovation of homes in need of improvements or repairs. Under RemodelNY, SONYMA will finance both the purchase and the renovation of the home with one mortgage. (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.
Q: Will SONYMA allow me to drop the private mortgage insurance (PMI) portion of my mortgage payment if the value of my property has increased? A:
No. SONYMA requires that all mortgage loans with a downpayment of less than 20% be covered by PMI insurance. SONYMA does not permit PMI to be eliminated based on a subsequent increase in the property's appraised value. However, SONYMA does require that the company servicing your mortgage cancel PMI coverage once the current unpaid principal balance is reduced to 80% of the original value of the property. In addition, the PMI must be cancelled when your mortgage reaches the midpoint of its original term (for example, the 181st month of a 360-month term mortgage), regardless of whether the balance has been reduced to 80% of the original value of the property. Under no circumstance, however, will PMI be eliminated if you are currently behind in making your mortgage payments. If you have additional questions regarding PMI, please contact your mortgage servicer for more information.
Q: Will SONYMA allow me drop my escrow payment and allow me to pay my own taxes and insurance? A:
No. SONYMA requires that an escrow account be maintained for all mortgage loans until the loan is paid in full.
Q: What is the Federal recapture tax? A:
SONYMA's first time homeowner mortgages are often funded through the issuance of tax free mortgage revenue bonds. By using our programs, borrowers are receiving the benefit of a lower interest rate than the private market offers. This benefit is "recaptured" in certain instances through higher Federal income taxes in the year you sell or otherwise dispose of your home.For more information, see the IRS's website at http://www.irs.gov/instructions/i8828/ch01.html
Q: When does the Federal recapture tax apply? A:
You are required to pay Federal recapture tax if all of the following three conditions apply:
You sell or otherwise dispose of your home within the first nine years;
You make a net profit on the sale; and
In the year you sell your home, your household income increased more than the IRS pre-established amount.
When you purchase your home, your lender and SONYMA will provide you with sample worksheets, which will include how much your household income would have to exceed for you to incur any recapture tax liability. If you sell or otherwise dispose of your home within 9 years, you must complete IRS Form 8828 ("Recapture of Federal Mortgage Subsidy") to determine if you owe the Federal recapture tax. To download IRS Form 8828, click here. To download the Instructions to Form 8828, click here.
Q: Does SONYMA's "Federal Recapture Tax Reimbursement" program mean I do not have to pay the Federal recapture tax? A:
No. You are still responsible for accurately paying any and all taxes to the IRS. SONYMA will reimburse you for the actual amount of the Federal recapture tax you owe and paid that is not covered by mortgage insurance.
Q: If I owe Federal Recapture Tax, to whom do I pay it and when? A:
Any recapture tax is paid to the IRS when you complete your Federal income tax return for the tax year in which you sold your home. For example, if you sold your home in 2007, you would pay the tax when you file your 2007 Federal income tax return.
Q: How do I apply for reimbursement? A:
It's simple:
Fill out the SONYMA's "Request for Recapture Tax Reimbursement" form and provide a signed copy of your Federal tax return, including completed IRS Form 8828, which has been filed showing payment of the Federal recapture tax.
Proof those taxes have been paid, such as a copy of a cancelled check or bank statement (if any tax was owed the IRS).
A copy of your HUD-1 Settlement Statement showing the sale of your home.
Forms to apply for reimbursement for applying for reimbursement are linked above.
Q: What are the guidelines to be eligible for reimbursement? A:
To be eligible for SONYMA reimbursement for any Federal recapture tax you paid, the following must apply:
Your loan was financed with SONYMA's qualified mortgage revenue bonds and closed on or after July 17, 2007, or if you recieved a Mortgage Credit Certificate and
You must submit the request for reimbursement no later than December 31st of the year the Federal Recapture Tax is owed and paid. For example, if you home is sold in 2007, the tax return is filed in 2008. The request for reimbursement must be submitted no later than December 31, 2008.
Q: Will SONYMA reimburse me for any Federal recapture tax that I pay? A:
Yes - if you close on your SONYMA mortgage on or after July 17, 2007. SONYMA will reimburse you for any portion of the recapture tax that is not covered by insurance.
Q: Will my mortgage insurance cover any Federal recapture tax liability? A:
It may.
Many SONYMA borrowers are required to purchase mortgage insurance.
For example, Genworth Mortgage Insurance Corporation will reimburse you for up to $6,000 if:
Your loan closed between May 15, 2007 through January 31, 2013 and you continue to pay mortgage insurance premiums to Genworth;
Your original loan amount does not exceed $300,000;
Note: Genworth no longer offers this option to new SONYMA borrowers (file for mortgage insurance consideration received after September 30, 2012 and/or loan closes after January 31, 2013.
Q: Is the recapture tax due if a home is destroyed by fire or other casualty? A:
No. The Federal recapture tax is not due in these circumstances as long as a replacement home is purchased.
If you have any other questions, please call our 800 number:
1-800-382-HOME (4663)
Q: Is the recapture tax due if you transfer your home to a spouse or former spouse as a result of a divorce, or if your home is transferred as a result of a death? A:
No.
Q: Will I be subject to the Federal recapture tax if I refinance my SONYMA mortgage? A:
No. However, if you later sell your home less than nine years from the original purchase date and meet the conditions described above, the Federal recapture tax may be due.
Q: Do I have to notify the IRS that I sold my home even if no tax is due? A:
Yes. Regardless of whether you owe any tax, you must file IRS Form 8828 with your Federal income tax return when you sell your home.
Q: What is the Job Loss Protection Plan? A:
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: The Job Loss Protection Plan is only available to Low Interest Rate and Achieving the Dream Program borrowers who obtained PMI insurance through Genworth Mortgage Insurance Corporation between November 29, 2004 and July 15, 2012, closed the loan by December 31, 2012, continues to have mortgage insurance coverage with Genworth Mortgage Insurance Corporation and the benefit period has not expired.
Q: How does the Job Loss Protection Plan work? A:
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 become involuntarily unemployed for more than thirty (30) days. Will pay up to a maximum of six (6) monthly payments for a job loss occurrence during the benefit period. The benefit period covers the first three (3) years after the loan closes, as long as the mortgage insurance remains in place.
The payment would be made to the mortgage servicer.
Note: If more than one borrower, a proportionate benefit is paid.
Q: How much does Job Loss Protection coverage cost? A:
Nothing! The cost of this coverage is paid by Genworth Mortgage Insurance for any borrower obtaining PMI insurance through Genworth Mortgage Insurance.
Q: Why do I receive notices from a lender who is different from the one that I closed my SONYMA mortgage with? A:
Not all SONYMA lenders service (that is, the collection of mortgage payments from the borrower, the payment of property taxes and insurance, etc.) our loans. In these cases, the lender will transfer the servicing of your loan to another mortgage servicer. This is a common practice in the mortgage industry and will not affect the terms and conditions of your mortgage loan. At the time of the transfer, which normally occurs simultaneously with the closing of the mortgage loan, the original lender is required to send each borrower a notice regarding this transfer.
Q: Will I have to pay a pre-payment penalty if I pay my loan off early? A:
No. SONYMA mortgage documents do not contain prepayment penalty clauses. You will not be charged a penalty fee if you make additional principal payments to your mortgage during the term of the loan or if you pay the loan off early.
Q: I am selling my home. Will SONYMA allow the purchaser to assume my existing mortgage? A:
No. SONYMA does not permit assumptions. However, the purchaser of the property may qualify for a new SONYMA mortgage loan if he/she is eligible. (Click here for more information on SONYMA's mortgage programs.)
Q: Will SONYMA refinance my loan? A:
No, under Federal law, SONYMA is not permitted to refinance an existing mortgage. If you wish to refinance, you will have to obtain financing from a conventional lender or another source.
Q: I am refinancing my SONYMA loan with another lender. Will SONYMA provide my lender with an assignment of mortgage so I can avoid the payment of mortgage tax? A:
No. SONYMA does not provide an Assignment of Mortgage for the purpose of avoiding mortgage taxes during the refinance transaction.
Q: Can I sell a portion of my property? A:
No. SONYMA will not permit the subdivision or other partial release of property secured by a SONYMA loan (unless required by a government entity under a condemnation proceeding).
Q: What happens if I am having problems making my mortgage payment? A:
Communication with your mortgage servicer is crucial. Don't be embarrassed to talk to your mortgage servicer as soon as you start having trouble. They will try to help you work something out. Perhaps they can establish a temporary "workout" plan that will help you keep your home. If your problem is more long-term or permanent, you may qualify for assistance from a local government agency or a nonprofit. As a last resort, selling your home may be the only option. If you have equity in the property (the current value of your home minus any outstanding mortgages), you may be able to recover it.
If you are unable to work out any of the above options and you do not make mortgage payments over a period of several months (usually 4 or more), the mortgage servicer may start foreclosure proceedings against you. This means the mortgage servicer will go through a legal process to take the title to your property and then sell the home to recover the amount you owe them in your mortgage. The foreclosure becomes part of your credit record and may adversely affect your ability to secure credit in the future.
Always remember that the mortgage servicer would much rather help you remain in your home and will work with you to help you avoid foreclosure.
Q: Who do I notify if I have a hazard insurance claim? A:
Immediately notify your mortgage servicer of the loss to your home. You will need to provide them with details regarding the loss, the insurance settlement, and your plans to restore the home to its original condition. You will also need to provide them with the claim proceeds check since either the mortgage servicer or SONYMA will be named as a co-payee. The mortgage servicer will work with you to determine the best option on how to proceed.
Q: Who do I notify if I got a divorce and I wish to release my ex-spouse from liability? A:
Contact your mortgage servicer. They will request certain documentation from you and, if approved, will then prepare a Release of Liability. Basically, they will require documentation to determine if the remaining borrower can afford to pay the mortgage on their own. Additionally, both borrowers will be required to sign a notarized affidavit establishing the relinquishment of all rights on the part of the borrower who wishes to be released and the acceptance of full responsibility under the mortgage loan by the remaining borrower. Note: SONYMA will not permit another individual to be added to the mortgage.
Q: Must I continue to occupy the property after the loan closes? A:
Yes! SONYMA borrowers must occupy the property for the entire term of the mortgage loan. If the mortgage servicer learns that you are not occupying the home as your principal place of residence, you will be requested to immediately reoccupy the property. If you do not reoccupy the property, SONYMA requires that the entire unpaid principal balance of the mortgage loan, together with accrued interest thereon, become immediately due and payable.
SONYMA will permit some exceptions to this requirement such as in the event of divorce (and at least one borrower remains in the home) or if you can prove that selling the home or refinancing your mortgage would cause you severe financial hardship. In any event, Federal law requires that if you do not occupy the SONYMA financed property for a continuous one year period, you will not be entitled to take the home mortgage interest deduction on your Federal tax returns (unless you get an exception from the IRS).
Q: May I use my property for a trade or business? A:
Yes, but you can not use, nor can any other person use, more than 15% of the property for business or income producing purposes (as determined on Line 3 of IRS Form 8829 "Expenses for Business Use of Your Home," or a successor form, of your Federal tax returns). Rental income received from the additional units of a two-, three-, or four- family home is not considered in this calculation.
If the mortgage servicer learns that you are not complying with this requirement, SONYMA requires that the entire unpaid principal balance of the mortgage loan, together with accrued interest thereon, become immediately due and payable.
Q: I received downpayment and/or closing cost assistance from SONYMA through either a Closing Cost Assistance Loan (CCAL) or Down Payment Assistance Loan (DPAL) when I closed my loan. Do I have to repay all or a portion of these funds back to SONYMA if I sell my home or refinance my loan prior to the end of the recapture period stated on my mortgage documents? A:
Possibly. Your mortgage servicer will determine if any of these funds must be repaid or "recaptured" when you pay off your SONYMA mortgage. The mortgage servicer will request certain documentation from you (i.e. current executed contract of sale or new appraisal if refinancing, estimated seller closing costs associated with the sale of the home, a description of any capital improvements made to the residence along with the appropriate documentation to support the cost and payments of such improvements) in order to assist the mortgage servicer in completion of the recapture calculation. The actual amount owed, if any, will be based upon the lower of your "remaining CCAL/DPAL balance" after taking into account the amount (1/120th) forgiven each month or your "net profit" as determined by the worksheet. After the recapture period has expired, there is no recapture amount due
Q: What if I am activated to Military Service? A:
Immediately notify your mortgage servicer of your active duty status. You will need to provide them with a copy of your military order. Once the documentation has been reviewed, your mortgage loan interest rate will be reduced to 6% for the duration of your Federal military service.
Upon your return from active duty, you are obligated to immediately notify your mortgage servicer. Your mortgage loan interest rate will be increased to the original rate, as indicated on your mortgage documents.
Q: Who can we contact with other AHC questions? A:
For grant disbursement purposes, please contact the Program Manager. For all other questions regarding your grant, please contact the appropriate regional Project Manager.
Q: Why is AHC project monitoring necessary? A:
Project monitoring is just one of several ways for AHC to ensure that Grantees are in compliance with AHC rules and regulations.
Q: Who do we send the AHC note and mortgage to? A:
AHC should receive the original filed note and mortgage and the grantee should keep a copy for records purposes.
Q: How do we close-out an AHC project? A:
Within six months of a project being completely disbursed, a close-out is required for all projects. Please click here for a close-out certification form.
Q: What is an AHC recapture? A:
A recapture may occur when a Grantee does not need or utilize AHC grant funds. AHC funds are returned but the funds do not go back into the project.
Q: A homeowner has submitted an AHC subordination request. What do we do? A:
Click here for the AHC subordination request form. Please complete and submit to the Project Manager that handles subordination requests.
Q: How do we calculate an AHC repayment amount? A:
Contact the Project Manager that handles satisfactions to guide you in determining the appropriate repayment amount. You may click here to see the repayment chart.
Q: What is the process for obtaining AHC approval for an assumption? A:
The Grantee should assist the homeowner in completing the AHC assumption request form and submitting it to AHC. Click here to see the assumption request form.
Q: A homeowner who received AHC funds wants to sell his home, but has not lived in the home for the full regulatory period. What are his options? A:
The homeowner may request approval of an assumption or pay off the remainder of the lien amount.
Q: How do we obtain a satisfaction on an AHC lien? A:
If the homeowner has lived in the home for the full regulatory period, AHC will issue a satisfaction upon the request of the Grantee. Please contact the Project Manager that handles satisfactions to guide you through the appropriate process.
Q: What do we do if a homeowner decides not to purchase a home utilizing AHC funds earmarked for the purchase? A:
Contact the Program Manager and return the check. The Program Manager will guide you through the appropriate process.
Q: When can we start drawing down AHC funds? A:
Once the grant agreement has been executed by both parties, the disbursement of funds may begin.
Q: We just got approved for an AHC grant. Why do we need to resubmit our exhibits? A:
AHC requires resubmission of exhibits due to possible changes and revisions that may have occurred during the application process. In addition, the exhibits that are required for the Grant Agreement may differ from the exhibits that were required for the application.
Q: Do I Qualify for the SONYMA Low Interest Rate Mortgage Program? A:
Yes, if you:
Are a first time homebuyer as defined by SONYMA (This requirement is waived for eligible military veterans and household members or for borrowers seeking to purchase a home located in a Federally designated Target Area. See Exceptions for Borrowers for more details);
Meet SONYMA's credit underwriting standards. Applicants must have:
a steady job;
a good credit history;
sufficient income to make the mortgage payment and meet other debt payments; and
Meet SONYMA's Household Income Limit requirements (click here to see Household Income Limits for your area);
Occupy the SONYMA-financed home as their permanent residence.
Note: If you currently own a residential investment or vacation home and you intend to retain ownership of the home, you will not qualify for SONYMA financing even if you are attempting to purchase a home located in a Target Area.
Q: Does the home I want to buy qualify for the SONYMA Low Interest Rate Program? A:
Yes, if it:
Is located in New York State;
Has a sales price that does not exceed SONYMA's Purchase Price Limits (click here to see Purchase Price Limits for your area);
Will not be used for any business or commercial purpose;
Two , three , or four family home that is at least five years old as of the SONYMA loan application date and has been used only as a residence during the past five years;
Two family home located in a Target Area that is completed newly constructed or was constructed within the five years prior to the SONYMA loan application date;
Is a maximum of 5 acres (exceptions can be made on a case by case basis);
Has at least 500 square feet of living space (exceptions can be made on a case by case basis).
Q: Do I Qualify for the SONYMA Remodel New York Program? A:
Yes, if you:
Are a first time homebuyer as defined by SONYMA (This requirement is waived for eligible military veterans and household members or for borrowers seeking to purchase a home located in a Federally designated Target Area. See Exceptions for Borrowers for more details);
Meet SONYMA's credit underwriting standards. Applicants must have:
a steady job;
a good credit history;
sufficient income to make the mortgage payment and meet other debt payments; and
Meet SONYMA's Household Income Limit requirements (click here to see Household Income Limits for your area);
Occupy the SONYMA-financed home as their permanent residence.
Note: If you currently own a residential investment or vacation home and you intend to retain ownership of the home, you will not qualify for SONYMA financing even if you are attempting to purchase a home located in a Target Area.
Q: Does the home I want to buy qualify for the SONYMA Remodel New York Program? A:
Yes, if it:
Is located in New York State;
Has a combined sales price and cost of renovations that does not exceed SONYMA's Purchase Price Limits (click here to see Purchase Price Limits for your area);
Will not be used for any business or commercial purpose;
Is one of the following property types:
Existingone family home. Condominiums are eligible provided the condominium association permits the proposed renovations. (Manufactured housing and cooperatives are not eligible.);
Existing two family home that is at least five years old as of the SONYMA loan application date and has been used only as a residence during the past five years;
Is a maximum of 5 acres (exceptions can be made on a case by case basis);
Has at least 500 square feet of living space (exceptions can be made on a case by case basis).
Q: Do I Qualify for the SONYMA Achieving the Dream Program? A:
Yes, if you:
Are a first time homebuyer as defined by SONYMA (This requirement is waived for eligible military veterans and their household members.);
Meet SONYMA's credit underwriting standards. Applicants must have:
a steady job
a good credit history
sufficient income to make the mortgage payment and meet other debt payments, and
Meet SONYMA's Household Income Limit requirements (click here to see Household Income Limits for your area);
Occupy the SONYMA-financed home as their permanent residence.
Note: If you currently own a residential investment or vacation home and you intend to retain ownership of the home, you will not qualify for SONYMA financing.
Q: Does the home I want to buy qualify for the SONYMA Achieving the Dream Program? A:
Yes, if it:
Is located in New York State;
Has a sales price and appraised value (as determined by a professional real estate appraiser) that does not exceed SONYMA's Purchase Price/Appraised Value limits (click here to see Purchase Price/Appraised Value Limits for your area);
Will not be used for any business or commercial purpose;
Existing two family home that is at least five years old as of the SONYMA loan application date and has been used only as a residence during the past five years;
Two family home located in a Target Area that is newly constructed or was constructed within the five years prior to the SONYMA loan application date;
Is a maximum of 5 acres (exceptions can be made on a case by case basis);
Has at least 500 square feet of living space (exceptions can be made on a case by case basis).
Q: Do I Qualify for the SONYMA Construction Incentive Program? A:
Yes, if you:
Are a first time homebuyer as defined by SONYMA (This requirement is waived for eligible military veterans and household members or for borrowers seeking to purchase a home located in a Federally designated Target Area . See Exceptions for Borrowers for more details);
Meet SONYMA's credit underwriting standards. Applicants must have:
a steady job;
a good credit history;
sufficient income to make the mortgage payment and meet other debt payments; and
Meet SONYMA's Household Income Limit requirements (click here to see Household Income Limits for your area);
Occupy the SONYMA-financed home as their permanent residence.
Note: If you currently own a residential investment or vacation home and you intend to retain ownership of the home, you will not qualify for SONYMA financing even if you are attempting to purchase a home located in a Target Area.
Q: Does the home I want to buy qualify for the SONYMA Construction Incentive Program? A:
Yes, if it:
Is located in New York State;
Has a sales price that does not exceed SONYMA's Purchase Price Limits (click here to see Purchase Price Limits for your area);
Will not be used for any business or commercial purpose;
Is a maximum of 5 acres (exceptions can be made on a case by case basis);
Has at least 500 square feet of living space (exceptions can be made on a case by case basis).
Q: How Does SONYMA Calculate Income? A:
With SONYMA loans, two distinct income calculations are made to determine the applicant's eligibility. The first calculation is called "underwriting income" and the second is called "compliance income".
Underwriting Income - This calculation is done in the same or similar way that other conventional mortgage lenders use to determine income. It is to ensure that applicants make sufficient income to pay their monthly mortgage payment and other debts.
Compliance Income - This calculation is unique to a SONYMA loan and is required by Federal law. It is to determine if the applicant's household income is within our Household Income Limits.
Q: How is SONYMA Compliance Income Calculated? A:
The following is a general guide to how SONYMA calculates compliance income. Not all sources of income are listed in the text of this list.
Whose Income Must be Used - Under law, SONYMA is required to use the total combined income of all borrowers;borrower’s spouse (regardless of whether they will be on title); and any other titleholders.
How Compliance Income is Calculated - SONYMA uses the following guidelines/calculations to determine if the applicant's household will meet our income limit eligibility requirements.
Basic Income Calculation: Obtain the year-to-date (YTD) gross income from current paystub. Deductions for pre-tax income (e.g., 401k, 457b contributions, health benefits, etc.) are not allowed. Divide YTD income by number of weeks elapsed in the current year and multiply by 52 to obtain annual income.
Overtime, Bonuses, and Commissions: Must be included in the YTD income calculation, as stated above. If the paystubs from the loan application date to current date do not reflect this type of pay, it may be removed from the YTD income calculation as stated above, but the amount must be added back to the total income. This income may be excluded completely if paystubs from the application date to current date do not reflect this type of pay and it can be demonstrated that there is no history (in prior years) of receiving this type of income.
Self-Employed Borrowers: The applicant will need to obtain a YTD profit and loss statement (P&L) prepared by a CPA. The previous year's Federal tax return with all schedules will also be required. (The P&L does not have to be audited.) Corporate Federal tax returns, Partnership Federal tax returns and K-1's may be required. Adjusted gross income, after business expenses, will be used to calculate annual income. Any disbursements or distributions received will be added to annual income. Divide YTD income by number of months represented and multiply by 12 to obtain annual income. Any major deviations in income from the previous year must be explained in writing.
Salary/Job Changes: If the applicant receives an increase/decrease in pay due to a job change, promotion, or terms of a new employment contract, the new salary will be treated as though it was received the entire year. Obtain employment letter or copy of contract and current paystub or VOE.
Retroactive Pay: Income received in the current year that was earned in a prior year(s) can be excluded as long as there is no continuous history of receiving this type of income and such income will not reoccur.
Income Earned in Prior Year, Paid in Current Year: If the applicant's YTD income includes pay for time worked in the prior calendar year, such income may be excluded from the YTD income if he/she can provide evidence of this. For example, if the applicant's first paystub of the year includes income earned from December 23 through January 5, the income earned from days worked in December may be excluded from the YTD figure.
Social Security or Disability Income: Must be included in income. Income received for a child's benefit must be included if the income is being used for the child's living expenses.
Proposed Rental Income: Do not include proposed rental income anticipated from the purchase of a 2- to 4-unit property.
Child Support/Alimony Paid by Borrower: Cannot be deducted from income.
Child Support/Alimony Received by Borrower: Must be included in income.
Relocation Allowance: Must be included in income.
Clothing Allowance: Must be included in income.
Car Allowance: Must be included in income.
Military Housing and Food Allowance:Must be included in income.
Unreimbursed Business Expenses for Salaried Employee (Union Dues, Safety Equipment, Business Equipment, etc): Cannot be deducted. However, if the applicant receives 1099 income and pay self-employment tax, business deductions are allowed.
Foster Care Income: Payments received as consideration for foster care duties with respect to children in the applicant's care are not considered income for this purpose and should not be included in the applicant's income.
NOTE: If the applicant's household income exceeds SONYMA's Household Income Limits, at either the time of application or loan closing, the applicant is not eligible for a SONYMA loan.
Q: How Does SONYMA Calculate the Purchase Price to Determine if it is Within SONYMA's Purchase Price Limits? A:
In almost every case, SONYMA uses the purchase price listed on the sales contract signed between the purchaser and the property seller to measure against our Purchase Price Limits. Under Federal regulations, however, there are a few exceptions:
Cooperative Units - The proportionate share (%) of the cooperative project's underlying mortgage must be added to the purchase price of the unit the applicant is purchasing. The combination of the unit sales price and the percentage share of the underlying mortgage cannot exceed SONYMA's Purchase Price Limit;
Homes with Unfinished Living Space - If the applicant purchases a home that has incomplete living space (for example, a two-story home where the second story is not finished), whether it is an existing home or a newly constructed home, SONYMA must add the reasonable cost of completing the unfinished space to the contract price. This total cannot exceed SONYMA's Purchase Price Limit;
Land Purchased More than 2 Years Ago - If the applicant purchased land more than two years ago and has now hired a contractor to build a home on this land, SONYMA does not include the cost of the land owned by the applicant in the purchase price of the home. However, if the applicant did purchase the land within the last two years, SONYMA must add the price paid for the land to the cost of construction and the resulting amount cannot exceed SONYMA's Purchase Price Limit.
Q: How Do I Apply for a SONYMA mortgage? A:
1) Get Pre-Qualified with a SONYMA Participating Lender - Contact a SONYMA participating lender (click here to see a list of Participating Lenders) and get pre-qualified for a SONYMA loan. Home purchasers armed with a pre-qualification letter from a lender are in a much stronger position when negotiating the sale of a home. It will also provide you with the approximate price range of homes you can afford. If the lender determines that you would not qualify for a mortgage at that time, they can suggest ways for you to improve your ability to be qualified in the future. (Click here to learn more about how to repair prior bad credit.) The lender will need for you to supply, for all loan applicants, the following minimum documentation:
information about your work history and what sources of income you have (have copies of your most recent pay stubs available);
bank account balances and account numbers, as well as bank branch addresses (have your two most recent monthly bank statements available);
information on all outstanding debts (including loans and credit cards, with names and addresses of creditors and account numbers);
landlord information including names, addresses and dates of rental;
last three years signed Federal income tax returns (not required for applicants purchasing a property in a Target Area);
copy of divorce decree/separation agreement (if applicable).
2) Find a Home and Sign a Contract - Once you find a home in your price range and agree on a price with the property seller, you must execute a contract of sale. Typical things to expect during this process include:
Initially, you will probably sign a purchase offer that requires you to pay a good faith deposit of $1,000 or less. The deposit shows that you are serious about purchasing the home. Once the seller signs the offer, it becomes a contract. Make sure the purchase offer gives you the opportunity to review the contract with an attorney. SONYMA recommends that you hire an attorney who specializes in real estate. You might also want to consider finding a real estate attorney on your own and not one recommended by your realtor, the property seller, or other interested party.
At minimum, the contract should have clauses that enable you to cancel the contract (and get your downpayment back) if (a) your mortgage application is turned down, (b) an inspection of the property (done by a professional home inspector company hired by you) reveals serious defects with the property, (c) a pest inspection shows a serious termite or pest infestation, or (d) the seller cannot provide you with clear, unencumbered title, etc.
Once the final contract is fully negotiated and executed, you will most likely be required to put down a more substantial downpayment - sometimes as high as 10% of the sales price. If you fail to meet the terms of your contract and you do not purchase the home, you may lose this deposit. Note: If the sales contract requires you to pay a higher downpayment than you can afford, SONYMA will allow you to finance up to 97% and as such you can be reimbursed the amount of additional downpayment you made at the signing of the contract.
SONYMA will not permit a lender to register your loan with us until they've received a fully executed sales contract signed by all buyers and sellers.
3) Sign an Updated Loan Application and Lock Your Interest Rate - Before the lender can register your loan with SONYMA and lock-in your interest rate, they will need you to sign a new loan application. The new application will reflect specific information stated in the sales contract such as the address of the property being purchased, the sales price, the loan amount, etc.
4) Stay in Touch with Your Lender and Attorney - Buying a home and getting a mortgage requires cooperation from all sides. Don't assume that no news is good news. Keep in frequent contact with your lender to ensure there is nothing they are expecting from you. If any additional documentation is requested of you by the lender, supply it in a quick and timely manner. Also, touch base with your attorney from time to time to ensure there are no issues from his/her end.
5) What Happens Next? - Once the lender completes your loan package, both SONYMA and its mortgage pool insurer must approve your loan. The typical SONYMA loan adds about one week to the processing time of a conventionally processed loan.
Once your application has been fully approved, and once all approval conditions have been satisfied, the Participating Lender will schedule a closing date.
Q: Do I have to be a first-time homebuyer to get a SONYMA Mortgage? A:
No, SONYMA provides special incentives for applicants purchasing homes in Federally-designated Target Areas. The incentives are:
You do not have to be a first time homebuyer*;
You can make more income and purchase more home since the Household Income and home Purchase Price Limits are higher (click here to see Household Income and Purchase Price Limits for your area); and
You can purchase a two family home that is a newly constructed or is an existing home that is less than 5 years old.
(*Note: However, you must sell your existing home and you will not be eligible if you currently own and you intend to retain ownership of a vacation or investment home.);
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 waivers do not apply to the Achieving the Dream Mortgage Program.
Q: How much additional time does it take to get a SONYMA loas as compared with most loans? A:
The typical SONYMA loan adds about one week to the processing time of a conventionally processed loan.
Q: Is there anything I can do to speed up the process? A:
Yes. In general, the mortgage application process can be both stressful and time consuming. You can help to expedite the process by having the following information and documentation available when you apply:
information about your work history and what sources of income you have (have copies of your most recent pay stubs available);
bank account balances and account numbers, as well as bank branch addresses (have your two most recent monthly bank statements available);
information on all outstanding debts (including loans and credit cards, with names and addresses of creditors and account numbers);
landlord information including names, addresses and dates of rental;
last three years signed Federal income tax returns (not required for applicants purchasing a property in a Target Area);
copy of divorce decree/separation agreement (if applicable).
If any additional documentation is requested of you by the lender, supply it in a quick and timely manner. Once your loan package is complete, both SONYMA and its mortgage pool insurer must review your loan. This final step only adds a couple days to the conventional loan process.
Here's another way to speed your loan process: Make sure the property seller has been provided with a SONYMA form called the "Property Seller's Affidavit" (available from your participating lender) as soon as possible, since the lender will need to forward this form with their package to SONYMA.
We have seen our loans fully committed in as little as two weeks from application. A quick approval is always contingent on the cooperation of all the parties involved.
Q: Would SONYMA consider my loan application if I previously filed for bankruptcy? A:
A prior bankruptcy doesn't automatically preclude you from obtaining a SONYMA loan. We do require that at least three years have passed since your bankruptcy was discharged. In addition, you must have re-established good credit and have a satisfactory explanation for going into bankruptcy (the cause of the bankruptcy must have been beyond your control). Your individual lender will review your circumstances and help you compile the necessary information. A credit decision will be made based on your entire loan package.
Q: What do you mean by re-established good credit? A:
Basically, you must have re-established at least four credit references, three of which must have been used in the last two years. In addition, one of the four credit references must be housing related (landlord) and all of the re-established credit lines must have been paid on time.
Q: I have had credit problems in the past. What is the best way to repair my credit so that I may apply for a mortgage in the future? A:
A good place to start is to speak to a qualified not-for-profit credit counseling organization that will review your personal situation and suggest ways to improve your credit. They may also help you to dispute any inaccurate items on your credit report. A good source of credit counseling providers can be found by clicking here. The US Department of Housing and Urban Development (“HUD”) runs this website. Click on the link “housing counseling agency” to find a counselling agency near you. Another option is to speak with one of our participating lenders who could spend some time putting together a "home loan action plan." Depending on the magnitude of the credit issues, that may be your best option.
Q: How are SONYMA's Household Income and Purchase Price Limits calculated? A:
Almost all of SONYMA's program funds with which we purchase mortgage loans are derived from the issuance of bonds, the interest of which is exempt from Federal income tax. This feature permits SONYMA to offer low interest rate mortgage loan financing to New Yorkers. To maintain the tax-exempt status of our bonds, we are required to comply with certain Federal laws and regulations, which, among other things, limit the maximum purchase price of SONYMA financed homes and the maximum income of eligible borrowers to Federally mandated levels.
Income limits are calculated using area median incomes that are typically published annually by the U.S. Department of Housing and Urban Development (HUD). HUD publishes the area median incomes by Metropolitan Statistical Area (MSA), or, in more rural areas, by county. Under the law, SONYMA is permitted to use the higher of the New York State median income or the area median income to establish its income limits. The incomes are then adjusted for family size. In addition, higher income limits apply for households that purchase a home in a Federally designated Target Area.
For calculation of purchase price limits, Federal law requires SONYMA to use the most recent IRS-published "average area sales prices." In 2004, the IRS modified the formula to calculate average area purchase prices. They are now based on the annual loan limits set by the Federal Housing Administration (FHA) for FHA-insured mortgages. The FHA limits are published by MSA. Non-MSA areas are grouped into an "All Other" category. The limits are calculated by dividing the applicable FHA loan limit by 0.76.
Q: Will SONYMA allow me to drop the private mortgage insurance (PMI) portion of my mortgage payment if the value of my property has increased? A:
No. SONYMA requires that all mortgage loans with a downpayment of less than 20% be covered by PMI insurance. SONYMA does not permit PMI to be eliminated based on a subsequent increase in the property's appraised value. However, SONYMA does require that the company servicing your mortgage cancel PMI coverage once the current unpaid principal balance is reduced to 80% of the original value of the property. In addition, the PMI must be cancelled when your mortgage reaches the midpoint of its original term (for example, the 181st month of a 360-month term mortgage), regardless of whether the balance has been reduced to 80% of the original value of the property.
In no circumstance, however, will PMI be eliminated if you are currently behind in making your mortgage payments.
If you have additional questions regarding PMI, please contact your lender's servicing department for more information.
Q: What is the Federal recapture tax? A:
SONYMA's first time homeowner mortgages are often funded through the issuance of tax free mortgage revenue bonds. By using our programs, borrowers are receiving the benefit of a lower interest rate than the private market offers. This benefit is "recaptured" in certain instances through higher Federal income taxes in the year you sell or otherwise dispose of your home. For more information, see the IRS's website at http://www.irs.gov/instructions/i8828/ch01.html
Q: When does the Federal recapture tax apply? A:
You are required to pay Federal recapture tax if all of the following three conditions apply:
You sell or otherwise dispose of your home within the first nine years;
You make a net profit on the sale; and
In the year you sell your home, your household income increased more than the IRS pre-established amount.
When you purchase your home, your lender and SONYMA will provide you with sample worksheets, which will include how much your household income would have to exceed for you to incur any recapture tax liability. If you sell or otherwise dispose of your home within 9 years, you must complete IRS Form 8828 ("Recapture of Federal Mortgage Subsidy") to determine if you owe the Federal recapture tax. To download IRS Form 8828, click here. To download the Instructions to Form 8828, click here.
Q: If I owe Federal Recapture Tax, to whom do I pay it and when? A:
Any recapture tax is paid to the IRS when you complete your Federal income tax return for the tax year in which you sold your home. For example, if you sold your home in 2007, you would pay the tax when you file your 2007 Federal income tax return.
Q: What are the guidelines to be eligible for reimbursement? A:
To be eligible for SONYMA reimbursement for any Federal recapture tax you paid, the following must apply:
Your loan was financed with SONYMA's qualified mortgage revenue bonds and closed on or after July 17, 2007, or if you recieved a Mortgage Credit Certificate and
You must submit the request for reimbursement no later than December 31st of the year the Federal Recapture Tax is owed and paid. For example, if you home is sold in 2007, the tax return is filed in 2008. The request for reimbursement must be submitted no later than December 31, 2008.
Q: Will my mortgage insurance cover any Federal recapture tax liability? A:
It may. Many SONYMA borrowers are required to purchase mortgage insurance.
For example, Genworth Mortgage Insurance Corporation will reimburse you for up to $6,000 if:
Your loan closed after May 14, 2007;
Your original loan amount does not exceed $300,000;
You pay premiums to Genworth for mortgage insurance.
Q: Is the recapture tax due if a home is destroyed by fire or other casualty? A:
No. The Federal recapture tax is not due in these circumstances as long as a replacement home is purchased.
If you have any other questions, please call our 800 number:
1-800-382-HOME (4663)
Q: How do I apply for reimbursement? A:
It's simple:
Fill out the SONYMA's "Request for Recapture Tax Reimbursement" form and provide a signed copy of your Federal tax return, including completed IRS Form 8828, which has been filed showing payment of the Federal recapture tax.
Proof those taxes have been paid, such as a copy of a cancelled check or bank statement (if any tax was owed the IRS).
A copy of your HUD-1 Settlement Statement showing the sale of your home.
Forms to apply for reimbursement for applying for reimbursement are linked above.
Q: Is the recapture tax due if you transfer your home to a spouse or former spouse as a result of a divorce, or if your home is transferred as a result of a death? A:
No.
Q: Will I be subject to the Federal recapture tax if I refinance my SONYMA mortgage? A:
No. However, if you later sell your home less than nine years from the original purchase date and meet the conditions described above, the Federal recapture tax may be due.
Q: Do I have to notify the IRS that I sold my home even if no tax is due? A:
Yes. Regardless of whether you owe any tax, you must file IRS Form 8828 with your Federal income tax return when you sell your home.
Q: Does SONYMA's "Federal Recapture Tax Reimbursement" program mean I do not have to pay the Federal recapture tax? A:
No. You are still responsible for accurately paying any and all taxes to the IRS. SONYMA will reimburse you for the actual amount of the Federal recapture tax you owe and paid that is not covered by mortgage insurance.
Q: Will SONYMA reimburse me for any Federal recapture tax that I pay? A:
Yes - if you close on your SONYMA mortgage on or after July 17, 2007. SONYMA will reimburse you for any portion of the recapture tax that is not covered by insurance.
Q: What types of AHC projects are there? A:
Grants are given to eligible applicants for new construction, acquisition/rehabilitation and home improvement projects.
Q: What are the AHC income qualifications? A:
AHC utilizes the annual HUD low income limits as a baseline. However, there is a tiered structure for determining income qualifications, which varies with each project. To find out the income qualifications for a specific project, please contact the Grantee by clicking here for a Grantee list.
Q: How do I apply for AHC funds? A:
Homebuyers may not apply directly to AHC. Grants are given to municipalities, not-for-profit corporations and charitable organizations (Grantees) who, in turn, utilize the funds to assist income qualified families. To find a current AHC Grantee in your area, click here.
Q: Can I get an AHC grant? Am I eligible? A:
You may be able to receive funds, but it must be through a Grantee in your area. Eligibility depends upon the project specifications which include income eligibility.
Q: How much can a homebuyer receive in AHC funds? A:
Depending on the type of project that the Grantee is administering, grants funds of up to $40,000 per unit may be available.
Q: I already own a home. Do I have to be a first-time homebuyer to get a SONYMA Mortgage? A:
No, SONYMA provides special incentives for applicants purchasing homes in Federally-designated Target Areas. The incentives are:
You can make more income and purchase more home since the Household Income and home Purchase Price Limits are higher (click here to see Household Income and Purchase Price Limits for your area); and
You can purchase a two family home that is a newly constructed or is an existing home that is less than 5 years old.
(*Note: However, you must sell your existing home and will not be eligible if you currently own and you intend to retain ownership of a vacation or investment home.);
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 waivers do not apply to the Achieving the Dream Mortgage Program.
SONYMA
Q: Will SONYMA refinance my existing loan? A:
No, under Federal law, SONYMA is not permitted to refinance an existing mortgage. If you wish to refinance, you will have to obtain financing from a conventional lender or another source.
Q: Can I get an AHC grant? Am I eligible? A:
You may be able to receive funds for home improvement, but it must be through a Grantee in your area. Eligibility depends upon the project specifications which include income eligibility.
Q: What types of AHC projects are there? A:
For current homeowners, funding can be obtained through home improvement projects only.
Q: How do I apply for AHC funds? A:
Homeowners may not apply directly to AHC. Grants are given to municipalities, not-for-profit corporations and charitable organizations (Grantees) who, in turn, utilize the funds to assist income qualified families. To find a current AHC Grantee in your area, click here.
Q: What are the AHC income qualifications? A:
AHC utilizes the annual HUD low income limits as a baseline. However, there is a tiered structure for determining income qualifications, which also varies with each project. To find out the income qualifications for a specific project, please contact the Grantee by clicking here for a Grantee list.
Q: How much can a homeowner receive in AHC funds? A:
For home improvement projects, funds of up to $40,000 per unit may be available.
Q: I have an AHC grant, and I want to sell my home. What do I do? A:
You may either find an income qualified family to assume your AHC note and mortgage, or you may repay the remainder of your loan.
Q: I have other questions about my existing AHC grant. Who can I contact? A:
Please contact the original source (AHC Grantee) that awarded you the funds. If your Grantee no longer exists as a current Grantee on our list, please e-mail your name and address with your question to CarolineT@nyshcr.org.
Q: How can I obtain a satisfaction for my AHC lien? A:
Once a homeowner has lived out the term of the AHC note and mortgage, a satisfaction may be issued. To find out more, please contact your corresponding Grantee.
Q: I'm looking to refinance or take out another mortgage. How can I subordinate the AHC lien? A:
Subordination requests are considered on a case-by-case basis. The homeowner should work in conjunction with the corresponding Grantee to submit the appropriate request documents. To see the AHC subordination request form, click here.
Q: How do I obtain approval of an AHC assumption? A:
AHC has final determination over whether or not to grant an assumption. However, the homeowner should work in conjunction with the corresponding Grantee to submit the appropriate request documents.
Q: How much is my AHC repayment? A:
To determine the amount of your repayment obligation, please click here for the repayment chart.
Q: What does SONYMA offer my clients? A:
SONYMA provides competitive 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.
Q: How will my clients benefit from a SONYMA loan? A:
Your clients will benefit from:
Competitive conventional market for 30 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 $15,000);
Flexible underwriting guidelines with no pricing adjustments, and;
Q: How do I know which lending program to choose? A:
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.)
Remodel New York Program - The RemodelNY Escrow option provides competitive interest rate financing to qualified first time homebuyers for the purchase and renovation of homes in need of improvements or repairs. Under RemodelNY, SONYMA will finance both the purchase and the renovation of the home with one mortgage. (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.
Q: What are the eligibility requirements for applicants? A:
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
Q: Are there any exceptions to the first-time homebuyer requirement? A:
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.
Q: What types of properties are eligible for SONYMA financing? A:
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.
Q: What other property eligibility requirements apply? A:
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.)
Q: How does SONYMA make its funds available? A:
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.
Q: Can mortgage brokers participate in originating SONYMA loans? A:
Yes, SONYMA permits the use of third party or correspondent originators ("mortgage brokers") to accept loan applications on behalf of a participating lender subject to the following conditions:
The mortgage broker must be registered with the New York State Banking Department and must make all disclosures to the applicant as required by regulations of the Banking Department.
The mortgage broker must be affiliated with a SONYMA participating lender. Mortgage brokers will not be permitted to act as independent agents soliciting potential SONYMA business, and then transferring the loan application to any SONYMA participating lender of their choice.
The participating lender will be required to notify SONYMA of any mortgage broker that it has approved to accept SONYMA loan applications. Additionally, the participating lender must execute an addendum to the mortgage purchase contract that sets forth its obligations to SONYMA when accepting mortgage broker loans.
Mortgage brokers are permitted to be involved with the initial processing of SONYMA loans, but the affiliated participating lender will be responsible for underwriting and closing the loans.
The participating lender and the mortgage broker may not impose any additional costs on the applicant other than as permitted by SONYMA. The interest rate, points and associated fees should be the same as if a borrower applied directly to a participating lender. Participating lenders will be responsible for providing technical training for mortgage brokers.
Mortgage brokers are prohibited from advertising in the print media (i.e. newspapers, trade magazines, etc.) or electronic media (i.e. radio, television, internet, etc.) that they: (A) are affiliated with SONYMA, (B) represent that they are a SONYMA participating lender or broker, and/or (C) have SONYMA funds available.
Q: We already have a new construction project with AHC. Can we apply for more funds for another project? A:
Yes. An existing project with AHC does not prohibit an applicant from requesting or receiving additional funds.
Q: How do I know if the AHC project is in a High Cost Area? A:
To see the High Cost Area Table, please click here.
Q: How much AHC assistance can we get? A:
Grants of up to 60% of the entire development cost may be provided by AHC. However, each unit may receive no more than $40,000, assuming the project is in a high cost area or is receiving a US Department of Agriculture Rural Development Service Loan.
Q: What types of projects does AHC fund? A:
AHC provides grants to build, acquire/rehabilitate or improve homes for low and moderate income families.
Q: How do I find out about the next AHC funding round? A:
AHC sends out a Notice of Funding Availability (NOFA) with the application for each new funding round. To get on the mailing list for an application, please send an e-mail to CarolineT@nyshcr.org with your contact information. You can also check this website for constantly updated information.
Q: Am I eligible for an AHC grant? A:
If you are a municipality, not for profit or charitable organization, you may be eligible for a grant.
Q: What are the qualifications to become a SONYMA participating lender? A:
In order to be approved and continue as a SONYMA participating lender, your corporation:
Must be a corporation or organization located in New York State and must be one of the following: (i) bank or trust company, savings bank, savings and loan association, industrial bank, national banking association, federal savings and loan association, federal savings bank; (ii) a credit union or federal credit union; or (iii) a New York State licensed mortgage banker approved as a mortgage lender by Fannie Mae or Freddie Mac.
Must have a master policy with SONYMA's Mortgage Pool Insurance Underwriter.
Can not also be a broker with another SONYMA participating lender.
Must originate mortgages as a primary component of the company's overall business operations.
Must meet SONYMA's fidelity insurance and errors and omissions coverage requirements.
Must pay a one-time fee ranging from $3,750 to $15,000 (depending on your institution's mortgage originations over the past 4 quarters).
As a condition of final approval, and prior to making reservations for individual loan applications as a SONYMA participating lender, must participate in a SONYMA Technical Assistance Meeting for training of the Agency's operational procedures.
Must annually certify that your company is in compliance with all requirements of SONYMA's Seller's Guide and Mortgage Purchase Agreement.
Must annually meet SONYMA's financial requirements. Currently, SONYMA requires the lender to have a minimum net worth to assets of at least five (5) percent.
Must close a minimum of 20 SONYMA loans per year.
Q: Who can I contact for more information about becoming a SONYMA lender? A:
Q: How do I apply to become a SONYMA participating lender? A:
Click on Application Instructions to get detailed information on completing the application. Complete and submit the following original documentation to SONYMA:
Attach a copy of the Applicant's last three years' certified financial statements (including Notes) and any interim statements. (For banks, also attach the last three years' annual FDIC, FHLBB, OTS or FFIEC Call Reports, along with the latest interim Call Reports).
Note: The "as of" date of the last three years' Call Reports should match the year-end date of the financial statements.
Master Hazard and Flood Insurance Certificate (Form 247) (click here to download this form) If this certification is signed by the Lender, it will not be necessary to submit a Hazard and Flood Insurance Certificate with each post-closing loan file.
Master Loan Funding Certification (Form 248) (click here to download this form) If this certification is signed by the Lender, it will not be necessary to submit a Loan Funding Certification with each post-closing loan file.
Certificate as to Unsecured Credit Agreement (This is only applicable if lender intends to use an unsecured line of credit to fund loans). This must be printed on the Creditor's letterhead, executed by the Creditor Bank, and acknowledged by your institution (click here to download this form);
If lender intends to use a warehousing entity to fund its loans prior to SONYMA purchase, submit a copy of Lender's executed warehousing agreement, along with evidence that the agreement is currently in effect;
If lender is a licensed mortgage banker, submit evidence that lender is an approved seller/servicer of Fannie Mae or Freddie Mac.
Please submit all documentation to:
SONYMA
641 Lexington Avenue, 2nd Floor
New York, NY 10022
Attn: Susan Pline
Q: How do I learn more about SONYMA's selling guidelines? A:
SONYMA provides competitive 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.
Q: How will my clients benefit from a SONYMA loan? A:
Your clients will benefit from:
Competitive conventional market for 30 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 $15,000);
Flexible underwriting guidelines with no pricing adjustments, and;
Q: How do I know which lending program to choose? A:
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.)
Remodel New York Program - The RemodelNY Escrow option provides competitive interest rate financing to qualified first time homebuyers for the purchase and renovation of homes in need of improvements or repairs. Under RemodelNY, SONYMA will finance both the purchase and the renovation of the home with one mortgage. (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.
Q: How does SONYMA make its funds available? A:
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.
Q: What types of properties are eligible for SONYMA financing? A:
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.
Q: What other property eligibility requirements apply? A:
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.)
Q: What are the eligibility requirements for applicants? A:
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
Q: Are there any exceptions to the first-time homebuyer requirement? A:
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.
Q: How Does SONYMA Calculate Income? A:
With SONYMA loans, two distinct income calculations are made to determine the applicant's eligibility. The first calculation is called "underwriting income" and the second is called "compliance income".
Underwriting Income - This calculation is done in the same or similar way that other conventional mortgage lenders use to determine income. It is to ensure that applicants make sufficient income to pay their monthly mortgage payment and other debts.
Compliance Income - This calculation is unique to a SONYMA loan and is required by Federal law. It is to determine if the applicant's household income is within our Household Income Limits.
Q: How is SONYMA Compliance Income Calculated? A:
The following is a general guide to how SONYMA calculates compliance income. Not all sources of income are listed in the text of this list.
Whose Income Must be Used - Under law, SONYMA is required to use the total combined income of all borrowers;borrower’s spouse (regardless of whether they will be on title); and any other titleholders.
How Compliance Income is Calculated - SONYMA uses the following guidelines/calculations to determine if the applicant's household will meet our income limit eligibility requirements.
Basic Income Calculation: Obtain the year-to-date (YTD) gross income from current paystub. Deductions for pre-tax income (e.g., 401k, 457b contributions, health benefits, etc.) are not allowed. Divide YTD income by number of weeks elapsed in the current year and multiply by 52 to obtain annual income.
Overtime, Bonuses, and Commissions: Must be included in the YTD income calculation, as stated above. If the paystubs from the loan application date to current date do not reflect this type of pay, it may be removed from the YTD income calculation as stated above, but the amount must be added back to the total income. This income may be excluded completely if paystubs from the application date to current date do not reflect this type of pay and it can be demonstrated that there is no history (in prior years) of receiving this type of income.
Self-Employed Borrowers: The applicant will need to obtain a YTD profit and loss statement (P&L) prepared by a CPA. The previous year's Federal tax return with all schedules will also be required. (The P&L does not have to be audited.) Corporate Federal tax returns, Partnership Federal tax returns and K-1's may be required. Adjusted gross income, after business expenses, will be used to calculate annual income. Any disbursements or distributions received will be added to annual income. Divide YTD income by number of months represented and multiply by 12 to obtain annual income. Any major deviations in income from the previous year must be explained in writing.
Salary/Job Changes: If the applicant receives an increase/decrease in pay due to a job change, promotion, or terms of a new employment contract, the new salary will be treated as though it was received the entire year. Obtain employment letter or copy of contract and current paystub or VOE.
Retroactive Pay: Income received in the current year that was earned in a prior year(s) can be excluded as long as there is no continuous history of receiving this type of income and such income will not reoccur.
Income Earned in Prior Year, Paid in Current Year: If the applicant's YTD income includes pay for time worked in the prior calendar year, such income may be excluded from the YTD income if he/she can provide evidence of this. For example, if the applicant's first paystub of the year includes income earned from December 23 through January 5, the income earned from days worked in December may be excluded from the YTD figure.
Social Security or Disability Income: Must be included in income. Income received for a child's benefit must be included if the income is being used for the child's living expenses.
Proposed Rental Income: Do not include proposed rental income anticipated from the purchase of a 2- to 4-unit property.
Child Support/Alimony Paid by Borrower: Cannot be deducted from income.
Child Support/Alimony Received by Borrower: Must be included in income.
Relocation Allowance: Must be included in income.
Clothing Allowance: Must be included in income.
Car Allowance: Must be included in income.
Military Housing and Food Allowance:Must be included in income.
Unreimbursed Business Expenses for Salaried Employee (Union Dues, Safety Equipment, Business Equipment, etc): Cannot be deducted. However, if the applicant receives 1099 income and pay self-employment tax, business deductions are allowed.
Foster Care Income: Payments received as consideration for foster care duties with respect to children in the applicant's care are not considered income for this purpose and should not be included in the applicant's income.
NOTE: If the applicant's household income exceeds SONYMA's Household Income Limits, at either the time of application or loan closing, the applicant is not eligible for a SONYMA loan.
Q: How Does SONYMA Calculate the Purchase Price to Determine if it is Within SONYMA's Purchase Price Limits? A:
In almost every case, SONYMA uses the purchase price listed on the sales contract signed between the purchaser and the property seller to measure against our Purchase Price Limits. Under Federal regulations, however, there are a few exceptions:
Cooperative Units - The proportionate share (%) of the cooperative project's underlying mortgage must be added to the purchase price of the unit the applicant is purchasing. The combination of the unit sales price and the percentage share of the underlying mortgage cannot exceed SONYMA's Purchase Price Limit;
Homes with Unfinished Living Space - If the applicant purchases a home that has incomplete living space (for example, a two-story home where the second story is not finished), whether it is an existing home or a newly constructed home, SONYMA must add the reasonable cost of completing the unfinished space to the contract price. This total cannot exceed SONYMA's Purchase Price Limit;
Land Purchased More than 2 Years Ago - If the applicant purchased land more than two years ago and has now hired a contractor to build a home on this land, SONYMA does not include the cost of the land owned by the applicant in the purchase price of the home. However, if the applicant did purchase the land within the last two years, SONYMA must add the price paid for the land to the cost of construction and the resulting amount cannot exceed SONYMA's Purchase Price Limit.
Q: How does a potential client apply for a SONYMA mortgage? A:
Proceed with the following steps:
Get Pre-Qualified with a SONYMA Participating Lender - The applicant should contact a SONYMA participating lender (click here to see a list of Participating Lenders) and get pre-qualified for a SONYMA loan. Home purchasers armed with a pre-qualification letter from a lender are in a much stronger position when negotiating the purchase of a home. All loan applicants will need to supply the following minimum documentation:
information about the applicant's work history and what sources of income they have (have copies of their most recent pay stubs available);
bank account balances and account numbers, as well as bank branch addresses (have their two most recent monthly bank statements available);
information on all outstanding debts (including loans and credit cards, with names and addresses of creditors and account numbers);
landlord information including names, addresses and dates of rental;
last three years signed Federal income tax returns (not required for applicants purchasing a property in a Target Area);
copy of divorce decree/separation agreement (if applicable).
Find a Home and Sign a Contract - SONYMA will not permit a lender to register the loan with us until they've received a fully executed sales contract (signed by all buyers and sellers).
Sign an Updated Loan Application and Lock the Interest Rate - Before the lender can register the loan with SONYMA and lock-in the interest rate, they will need the applicant to sign a new loan application.
What Happens Next? - Once the lender completes the loan package, both SONYMA and its mortgage pool insurer must approve the loan. The typical SONYMA loan adds about one week to the processing time of a conventionally processed loan.
Once the application has been fully approved, and once all approval conditions have been satisfied, the Participating Lender will schedule a closing date.
Q: How much additional time does it take to get a SONYMA loan as compared with most loans? A:
It depends on the lender. Some lenders take 30 days or less from application to get a commitment from us. Others take longer. To see how many SONYMA loans each participating lender has submitted to us from your area and the average processing time from application to SONYMA commitment, click here.
The typical SONYMA loan adds about one week to the processing time of a conventionally processed loan.
Q: Is there anything the real estate agent can do to speed up the process? A:
Yes. In general, you can help to expedite the process by making sure the applicant has the following information and documentation available when they apply:
information about the applicant's work history and what sources of income they have (have copies of their most recent pay stubs available);
bank account balances and account numbers, as well as bank branch addresses (have their two most recent monthly bank statements available);
information on all outstanding debts (including loans and credit cards, with names and addresses of creditors and account numbers);
landlord information including names, addresses and dates of rental;
last three years signed Federal income tax returns (not required for applicants purchasing a property in a Target Area);
copy of divorce decree/separation agreement (if applicable).
Here's another way to speed the loan process. Make sure the property seller has been provided with a SONYMA form called the "Property Seller's Affidavit" (available from your participating lender) as soon as possible, since the lender will need to forward this form with their package to SONYMA.
We have seen our loans fully committed in as little as two weeks from application. A quick approval is always contingent on the cooperation of all the parties involved.
Q: How are SONYMA's Household Income and Purchase Price Limits calculated? A:
Almost all of SONYMA's program funds with which we purchase mortgage loans are derived from the issuance of bonds, the interest of which is exempt from Federal income tax. This feature permits SONYMA to offer low interest rate mortgage loan financing to New Yorkers. To maintain the tax-exempt status of our bonds, we are required to comply with certain Federal laws and regulations, which, among other things, limit the maximum purchase price of SONYMA financed homes and the maximum income of eligible borrowers to Federally mandated levels.
Income limits are calculated using area median incomes that are typically published annually by the U.S. Department of Housing and Urban Development (HUD). HUD publishes the area median incomes by Metropolitan Statistical Area (MSA), or, in more rural areas, by county. Under the law, SONYMA is permitted to use the higher of the New York State median income or the area median income to establish its income limits. The incomes are then adjusted for family size. In addition, higher income limits apply for households that purchase a home in a Federally designated Target Area.
For calculation of purchase price limits, Federal law requires SONYMA to use the most recent IRS-published "average area sales prices." In 2004, the IRS modified the formula to calculate average area purchase prices. They are now based on the annual loan limits set by the Federal Housing Administration (FHA) for FHA-insured mortgages. The FHA limits are published by MSA. Non-MSA areas are grouped into an "All Other" category. The limits are calculated by dividing the applicable FHA loan limit by 0.76.
Q: I understand that SONYMA loans require the borrower to pay a Federal recapture upon the sale of the home. What is this about? A:
SONYMA finances its programs through the sale of tax-exempt bonds. This allows SONYMA to finance mortgage loans purchased by SONYMA at rates of interest below conventional market rates. Federal law provides that homeowners who receive a loan financed with proceeds from the sale of tax-exempt bonds may be required to repay a portion of the "interest subsidy" at the time of the sale or disposition of the home.
The objective of the recapture tax is to enable the federal government to collect, or recapture, an amount based on the difference between what the borrower paid in interest on the loan financed from the proceeds of the sale of tax-exempt bonds and what he/she would have paid if a market rate mortgage loan had been obtained.
The recapture tax is generally due upon any sale or disposition of the home. The recapture tax may be reduced or eliminated depending upon whether the borrower's family income for the year in which the home is sold or disposed exceeds the "adjusted qualifying income" limit for that year. However, no recapture tax will be due if the home is transferred to a spouse, or former spouse as a result of divorce, or if the home is transferred as a result of death. Involuntary transfers due to destruction of the home by fire or other casualty will also be excluded so long as a replacement home is purchased. Any potential recapture tax liability ends after the ninth year of ownership. Thus, any sale or disposition after the ninth year is not subject to recapture.
The length of time a borrower owns a home during the eligible recapture period is referred to as the holding period. Generally, the amount of the federal recapture tax is 1.25% of the original principal amount of the mortgage loan per year for the first five years of the loan up to a maximum potential recapture tax of 6.25%. The tax then declines by 1.25% per year during years 6 through 9, after which no tax would be due.
The amount of recapture tax cannot, in any event, exceed 50% of the gain realized from the sale or disposition of the home.
A more detailed explanation of the recapture tax as it may affect the borrower's particular financial situation should be obtained from a tax advisor. SONYMA does not provide individual tax advice.
Q: Is my client eligible for reimbursement of any Federal recapture tax that they may pay? A:
Yes. To eliminate the stigma of the recapture tax from our loans, SONYMA offers two reimbursement options.
First, one of SONYMA's partners, Genworth Mortgage Insurance Corporation, offers reimbursement for up to $6,000 if the loan has mortgage insurance from Genworth. To be elible, the SONYMA loan must have closed on May 14, 2007.
Second, if your client's loan closed on or after July 17, 2007, SONYMA will reimburse them for any portion of the recapture tax that is not covered by mortgage insurance. If a loan was not covered by Genworth mortgage insurance, SONYMA will reimburse the entire amount.
To learn more about the recapture tax and how to apply for reimbursement, click here.
Q: Whom do I, as an applicant for an HFA financed apartment, contact regarding questions or complaints regarding the application process? A:
If you believe that an owner or owner's representative has not met the requirements of all applicable federal, state and local fair housing and/or anti-discrimination laws, statutes, rules, or ordinances in the marketing or leasing of units financed by HFA, you may contact the New York State Division of Human Rights by visiting their Web site at http://www.dhr.ny.gov/ or by calling any of the numbers listed below:
Division of Human Rights Regional Offices
MANHATTAN (Lower) State Office Bldg. 20 Exchange Place, 2nd. Fl. New York, N.Y. 10005 (212) 480-2522
MANHATTAN (Upper) State Office Building 163 W. 125th Street 4th Floor New York, N.Y. 10027 (212) 961-8650
ROCHESTER (Main Office) 259 Monroe Avenue 1 Monroe Square 3rd Floor Rochester, N.Y. 14607 (585) 238-8250
BUFFALO The Walter J. Mahoney State Office Bldg. 65 Court St. - Suite 506 Buffalo, N.Y. 14202 (716) 847-7632
ADMINISTRATIVE OFFICES One Fordham Plaza Bronx, N.Y. 10458 (718) 741-8400
Q: Whom do I, as a resident of an HFA financed apartment, contact regarding questions or complaints about my building? A:
Owners are responsible for the management and operation of buildings financed by HFA. This responsibility is shared with the management company selected by the owner. Any questions or complaints that a resident may have regarding any aspect of a building's management or operation should be directed to the management company.
Q: How do I apply for an HFA financed apartment? A:
In buildings that have been financed by HFA, all or a portion of the rental apartment units are set aside for people with lower incomes. HFA does not own or manage the buildings. The owners, and/or their management companies that they may hire, are responsible for selecting tenants who meet the low income and other eligibility requirements of the financing HFA has provided. Click here to see a list of existing HFA developments that you can contact regarding applications.
Generally speaking, to be eligible for an affordable unit in a building financed by HFA, the household income must not exceed 50% of the local area median income adjusted for household size. Click here to view a table of income and rent limits as derived from current area median incomes.
For example, the 2009 area median income for New York City is $61,600. Therefore, to be eligible for an affordable unit in New York City, a one person household's income may not exceed approximately $26,900, a two person household's combined income may not exceed approximately $30,700, a three person household's combined income may not exceed approximately $34,550 and a four person household's combined income may not exceed approximately $38,400. The area median incomes in other parts of New York State are different, and therefore the maximum allowable incomes are also different.
Please note that in some HFA financed projects the maximum allowable income may be slightly higher or lower than 50% of the local area median income. Also note that there are minimum income requirements and other eligibility factors, including an acceptable credit history, that are established by the owners and are considered in the eligibility process.
Q: What types of newly constructed properties are eligible for SONYMA financing? A:
Eligible property types are:
One-family homes (including condominiums, PUDs, homeowners's associations, cooperatives, and double-wide manufactured housing permanently attached to real property); and
Q: What other eligibility requirements apply to newly constructed housing? A:
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;
Meet SONYMA's project requirements, if a condominium or cooperative. (Click here to see the project requirements for condominiums and cooperatives.)
Q: What SONYMA programs are available for newly constructed housing? A:
SONYMA offers a variety of programs for newly constructed homes, all with favorable rate lock periods. The programs we offer are:
Construction Incentive Program - Features 97% financing. First-time homebuyers* are qualified at a fixed interest rate and the rate is locked for 240 days from loan reservation. (Click here for more information on the Construction Incentive Program.)
Achieving the Dream Mortgage Program - Features 97% financing and the lowest interest rate of all SONYMA programs. Available to lower income first-time homebuyers. The rate lock period is 240 days. (Click here for more information on the Achieving the Dream Mortgage Program.)
ENERGY STAR® Labeled Homes - SONYMA offers a special incentive for purchasers of newly constructed homes. (Click here for more information on the ENERGY STAR® Labeled Homes.)
Down payment assistance is available to all SONYMA borrowers applying for one 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.
Q: What are the eligibility requirements for applicants? A:
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 their 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 about Target Areas.);
Meet SONYMA's Household Income Limits (click here to find the Household Income Limits for your area);
Occupy the SONYMA-financed home as their permanent residence.
Q: What are the benefits of getting a SONYMA Project Set-Aside? A:
By approving projects for builders, developers, and local community sponsors as a Project Set-Aside, SONYMA gives developers a powerful marketing tool by enabling them to offer low-cost, fixed-rate mortgages to qualified buyers.
A full range of community development and neighborhood preservation activities are eligible under Project Set-Aside. Projects may include the renovation of existing structures; both small or extensive new construction developments; conversion of lofts, factories, and school type buildings; mid and high rise condominiums and cooperatives; fee-simple townhouses; garden-style projects and standard subdivisions.
Q: Why should I get a SONYMA Project Set-Aside Approval? A:
Without a Project Set-Aside approval, SONYMA will finance a maximum of 3 loans in a newly constructed or rehabilitated development. With a Project Set-Aside approval, SONYMA will finance more units.
Q: How many units will SONYMA finance if I get a SONYMA Project Set-Aside Approval? A:
Many factors determine how many units we may finance in a development. In general and depending on the size of the project, SONYMA may finance up to 50% of the units. Typically we will initially approve a lower amount and then make a decision to finance more as the units begin to sell.
Q: How do I obtain SONYMA Project Set-Aside Approval? A:
The following documents must be submitted to SONYMA in duplicate (2), if applicable to your development:
Q: What are the benefits of developing a project in a Target Area? A:
Federal law provides certain special incentives for applicants purchasing homes in Federally designated Target Areas. SONYMA is committed to helping rebuild these neighborhoods. The incentives are as follows:
Applicants do not have to be first-time homebuyers;
Household income and home purchase price limits are higher; and
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.
Q: Where can I get more information on the AHC Program? A:
Click here for the AHC's Affordable Home Ownership Development Program Briefing Sheet.
Q: How can I get involved in AHC projects? A:
By merging efforts with an eligible applicant or current Grantee.
Q: How can I find out about AHC funding rounds? A:
AHC sends out a Notice of Funding Availability (NOFA) with the application (RFP - Request For Proposal) for each new funding round. To get on the mailing list for an application, please send an e-mail to CarolineT@nyshcr.org with your contact information. You can also check this website for constantly updated information.
Q: Am I eligible for AHC grant funds? A:
Eligible applicants for grant funds are municipalities, including municipal housing authorities and housing development fund companies, not-for profit corporations and charitable organizations.
Q: What requirements must my company comply with in order to remain in good standing as a SONYMA Participating Lender? A:
Participating lenders must:
Maintain in effect at all times, and at its expense, fidelity insurance and errors and omissions coverage underwritten by an insurance company authorized to do business in New York State and acceptable to Fannie Mae or Freddie Mac. The form and scope of such coverages shall also be consistent with the requirements of Fannie Mae or Freddie Mac. Coverage requirements are as follows:
Coverage Amount
Annual Originations Volume*
$300,000
$100 million or less
Plus 0.15% of the next
$400 million
Plus 0.125% of the next
$500 million
Plus 0.1% of any amount over
$1 billion
*For all one- to four-family loans including Mortgage Loans sold to SONYMA.
The maximum deductible shall be the greater of $100,000 or 5 percent of the minimum amount of insurance required above.
Annually, meet the criteria set forth below:
Financial Requirements - Maintain a net worth to assets ratio of at least 5 percent.
Performance Requirements - Originate and sell to SONYMA a minimum of 20 mortgage loans.
Submission of Annual Certification and Financial Statements. Submit within 90 days after the end of your fiscal year, the SONYMA Seller's Annual Certification (Form 240) (click here to download this form) to establish your continued compliance with all requirements of the Seller's Guide and the Mortgage Purchase Agreement.
In addition, you must submit your company's most recent audited financial statements. Further, if a bank or trust company, savings bank, savings and loan association, industrial bank, national banking association, federal savings and loan association, or federal savings bank, you must also submit the FDIC, FHLBB, OTS or FFIEC Call Report with the same year end date as that of the financial statements.
Seller shall comply with all Federal, State and local civil rights laws, including but not limited to, the Fair Housing and Equal Credit Opportunity Acts, and shall use its best efforts to comply with any decrees of the United States Department of Justice in connection with said laws.
Q: Can mortgage brokers participate in originating SONYMA loans? A:
Yes, SONYMA permits the use of third party or correspondent originators ("mortgage brokers") to accept loan applications on behalf of a participating lender subject to the following conditions:
The mortgage broker must be registered with the New York State Banking Department and must make all disclosures to the applicant as required by regulations of the Banking Department.
The mortgage broker must be affiliated with a SONYMA participating lender. Mortgage brokers will not be permitted to act as independent agents soliciting potential SONYMA business, and then transferring the loan application to any SONYMA participating lender of their choice.
The participating lender will be required to notify SONYMA of any mortgage broker that it has approved to accept SONYMA loan applications. Additionally, the participating lender must execute an addendum to the mortgage purchase contract that sets forth its obligations to SONYMA when accepting mortgage broker loans.
Mortgage brokers are permitted to be involved with the initial processing of SONYMA loans, but the affiliated participating lender will be responsible for underwriting and closing the loans.
The participating lender and the mortgage broker may not impose any additional costs on the applicant other than as permitted by SONYMA. The interest rate, points and associated fees should be the same as if a borrower applied directly to a participating lender. Participating lenders will be responsible for providing technical training for mortgage brokers.
Mortgage brokers are prohibited from advertising in the print media (i.e. newspapers, trade magazines, etc.) or electronic media (i.e. radio, television, internet, etc.) that they: (A) are affiliated with SONYMA, (B) represent that they are a SONYMA participating lender or broker, and/or (C) have SONYMA funds available.
Q: How are SONYMA's Household Income and Purchase Price Limits calculated? A:
Almost all of SONYMA's program funds with which we purchase mortgage loans are derived from the issuance of bonds, the interest of which is exempt from Federal income tax. This feature permits SONYMA to offer low interest rate mortgage loan financing to New Yorkers. To maintain the tax-exempt status of our bonds, we are required to comply with certain Federal laws and regulations, which, among other things, limit the maximum purchase price of SONYMA financed homes and the maximum income of eligible borrowers to Federally mandated levels.
Income limits are calculated using area median incomes that are typically published annually by the U.S. Department of Housing and Urban Development (HUD). HUD publishes the area median incomes by Metropolitan Statistical Area (MSA), or, in more rural areas, by county. Under the law, SONYMA is permitted to use the higher of the New York State median income or the area median income to establish its income limits. The incomes are then adjusted for family size. In addition, higher income limits apply for households that purchase a home in a Federally designated Target Area.
For calculation of purchase price limits, Federal law requires SONYMA to use the most recent IRS-published "average area sales prices." In 2004, the IRS modified the formula to calculate average area purchase prices. They are now based on the annual loan limits set by the Federal Housing Administration (FHA) for FHA-insured mortgages. The FHA limits are published by MSA. Non-MSA areas are grouped into an "All Other" category. The limits are calculated by dividing the applicable FHA loan limit by 0.76.
Q: How do I learn more about SONYMA's servicing guidelines? A:
Must be a corporation or organization located in New York State and must be one of the following: (i) bank or trust company, savings bank, savings and loan association, or national banking institution; or (ii) a New York State licensed mortgage banker approved as a mortgage lender by Fannie Mae or Freddie Mac;
Must have its deposits insured by the Federal Deposit Insurance Corporation;
Must annually meet SONYMA's financial requirements. Currently, SONYMA requires the Servicer to have a minimum net worth to assets ratio of at least 5%;
Must service mortgage loans as a normal course of business and have a satisfactory servicing record as determined by SONYMA;
Must have the ability to report monthly loan activity via electronic transfer;
Must have the ability to report delinquency information and foreclosure statuses electronically;
Must have the ability to track individual loans that were originated under special SONYMA loan programs;
Q: Who can I contact for more information about becoming a SONYMA Servicer? A:For additional information, please e-mail us at: Diane.Sclafani@nyshcr.org.Q: How can I find out if it might be feasible to convert a park to a cooperative? A:
Upon the written request of a majority of the residents of a park, the MHCFP will arrange to have a feasibility study performed to determine if a park could be successfully converted to a cooperative. The study looks at the current owner's position on selling, the physical condition of the park including any work necessary to bring it up to acceptable condition and an estimate of the market value of the park in order to determine whether a conversion is feasible while keeping the park affordable to its current residents. While the study is paid for by the MHCFP, if a conversion is feasible and is actually completed using a loan from the MHCFP, the cost of the study is reimbursed from that loan.
If the MHCFP receives a positive feasibility study and the residents are willing to try to purchase the land under their homes, the MHCFP can provide the residents with technical assistance to help them negotiate the purchase of the park and accomplish all other tasks necessary to complete the conversion.
Q: Can the State force the sale of a park to the residents? A:
No. The MHCFP can only make affordable loans to park residents who are able to persuade a park's current owner to sell.
Q: How does the cooperative buy the park? A:
The cooperative corporation buys the park from its current owner at a negotiated price acceptable to all parties and any sources of money for the purchase. The corporation usually gets the money to buy the park from a number of places including: loans from the MHCFP, loans from other lenders, money invested as equity by the residents who choose to become shareholders and various other grants and loans.
Q: What does cooperative ownership of a manufactured home park mean? A:
In a Manufactured Home Park Cooperative, the park is owned by a cooperative corporation. All of the shares in the corporation are owned by the residents of the park. As shareholders, the residents both get the right to lease the pads their homes are on and get the right to participate in running the park. The shareholders periodically elect a Board of Directors responsible for the day to day operations of the park and are entitled to accurate and timely information about the park's financial condition. As a group the shareholders own the park and have all the rights and responsibilities of the park's owner.
Q: How can I find out what my rights are as a Manufactured Home Park Resident in New York State? A:
The New York State Division of Housing and Community Renewal enforces the major provisions of the Manufactured Home Tenants "Bill of Rights", Section 233 of the Real Property Law. The Commissioner of Housing may make applications to courts to restrain violations by park owners and seek the imposition of penalties, allowances and restitution. Information about the "Bill of Rights" is available on the DHCR Website at http://nysdhcr.gov/Programs/ManufacturedHomes/
In order to efficiently respond to manufactured home park residents, DHCR has a 24-hour telephone hotline, 1-800-432-4210. DHCR's enforcement and compliance relies upon the evaluation of each complaint by Division professionals and where appropriate, referral to mediation centers across the state for prompt resolution. If mediation is not appropriate, DHCR staff will attempt to conciliate the complaint or if necessary seek a remedy from the courts.
Q: I have had credit problems in the past. What is the best way to repair my credit so that I may apply for a mortgage in the future? A:
A good place to start is to speak to a qualified not-for-profit credit counseling organization that will review your personal situation and suggest ways to improve your credit. They may also help you to dispute any inaccurate items on your credit report. A good source of credit counseling providers can be found by clicking here. Fannie Mae, the nation's leading provider of mortgage funds, runs this website. It offers, among other things, such topics as "Finding a Counseling Agency." Another option is to speak with one of our participating lenders who could spend some time putting together a "home loan action plan." Depending on the magnitude of the credit issues, that may be your best option.
Q: Would SONYMA consider my loan application if I previously filed for bankruptcy? A:
A prior bankruptcy doesn't automatically preclude you from obtaining a SONYMA loan. We do require that at least three years have passed since your bankruptcy was discharged. In addition, you must have re-established good credit and have a satisfactory explanation for going into bankruptcy (the cause of the bankruptcy must have been beyond your control). Your individual lender will review your circumstances and help you compile the necessary information. A credit decision will be made based on your entire loan package.
Q: What do you mean by re-established good credit? A:
Basically, you must have re-established at least four credit references, three of which must have been used in the last two years. In addition, one of the four credit references must be housing related (landlord) and all of the re-established credit lines must have been paid on time.
Q: What is the Federal recapture tax? A:
SONYMA's first time homeowner mortgages are often funded through the issuance of tax free mortgage revenue bonds. By using our programs, borrowers are receiving the benefit of a lower interest rate than the private market offers. This benefit is "recaptured" in certain instances through higher Federal income taxes in the year you sell or otherwise dispose of your home.For more information, see the IRS's website at http://www.irs.gov/instructions/i8828/ch01.html
Q: Will my mortgage insurance cover any Federal recapture tax liability? A:
It may. Many SONYMA borrowers are required to purchase mortgage insurance.
For example, Genworth Mortgage Insurance Corporation will reimburse you for up to $6,000 if:
Your loan closed after May 14, 2007;
Your original loan amount does not exceed $300,000;
You pay premiums to Genworth for mortgage insurance.
Q: Will SONYMA reimburse me for any Federal recapture tax that I pay? A:
Yes - if you close on your SONYMA mortgage on or after July 17, 2007. SONYMA will reimburse you for any portion of the recapture tax that is not covered by insurance.
Q: What are the guidelines to be eligible for reimbursement? A:
To be eligible for SONYMA reimbursement for any Federal recapture tax you paid, the following must apply:
Your loan was financed with SONYMA's qualified mortgage revenue bonds and closed on or after July 17, 2007, or if you recieved a Mortgage Credit Certificate and
You must submit the request for reimbursement no later than December 31st of the year the Federal Recapture Tax is owed and paid. For example, if you home is sold in 2007, the tax return is filed in 2008. The request for reimbursement must be submitted no later than December 31, 2008.
Q: How do I apply for reimbursement? A:
It's simple:
Fill out the SONYMA's "Request for Recapture Tax Reimbursement" form and provide a signed copy of your Federal tax return, including completed IRS Form 8828, which has been filed showing payment of the Federal recapture tax.
Proof those taxes have been paid, such as a copy of a cancelled check or bank statement (if any tax was owed the IRS).
A copy of your HUD-1 Settlement Statement showing the sale of your home.
Forms to apply for reimbursement for applying for reimbursement are linked above.
Q: Does SONYMA's "Federal Recapture Tax Reimbursement" program mean I do not have to pay the Federal recapture tax? A:
No. You are still responsible for accurately paying any and all taxes to the IRS. SONYMA will reimburse you for the actual amount of the Federal recapture tax you owe and paid that is not covered by mortgage insurance.
Q: If I owe Federal Recapture Tax, to whom do I pay it and when? A:
Any recapture tax is paid to the IRS when you complete your Federal income tax return for the tax year in which you sold your home. For example, if you sold your home in 2007, you would pay the tax when you file your 2007 Federal income tax return.
Q: Is the recapture tax due if a home is destroyed by fire or other casualty? A:
No. The Federal recapture tax is not due in these circumstances as long as a replacement home is purchased.
If you have any other questions, please call our 800 number:
1-800-382-HOME (4663)
Q: Is the recapture tax due if you transfer your home to a spouse or former spouse as a result of a divorce, or if your home is transferred as a result of a death? A:
No.
Q: Do I have to notify the IRS that I sold my home even if no tax is due? A:
Yes. Regardless of whether you owe any tax, you must file IRS Form 8828 with your Federal income tax return when you sell your home.
Q: Will I be subject to the Federal recapture tax if I refinance my SONYMA mortgage? A:
No. However, if you later sell your home less than nine years from the original purchase date and meet the conditions described above, the Federal recapture tax may be due.
Q: What is the process for purchasing a foreclosed property? A:
An appraisal of the foreclosed property must be made to determine the current fair market value 60 days prior to making the final offer. The acquisition price must be a t a discount of at least 5% from the fair market value. Properties purchased in the aggregate must be discounted by at least 15% from the market-appraised value.
Q: Are county allocation funds available to all 5 activities as defined in the RFP? A:
Yes, subject to all of the criteria listed in the RFP and strength of other applications, as this is a competitive RFP.
Q: How can the total grant amount for a county exceed the county cap? A:
The county caps do not include the low income set-aside portion, so the total grant amount can exceed the county cap amount to the extent it includes low income set aside funds. The cap also does not include administrative funds for subrecipients.
Q: Can NSP funds be used to subsidize the purchase of newly constructed homes built on vacant lots (via soft seconds)? Would this fall under Activity 1 or 5? A:
Neither. Activity 5 requires the actual redevelopment of demolished or vacant properties and Activity 1, which allows for soft seconds, are applicable to the purchase and redevelopment of foreclosed and abandoned properties.
Q: An area of our county was hard-hit by the foreclosure crisis, but is not within the 8 or above Risk Score areas. Can we provide NSP assistance anyway? A:
No. At this time, we are only providing assistance in areas located within zip codes that include at least one census tract group with risk scores of 8 or higher.
Q: Will the NSP review team consider partially funding an application? A:
Yes. Depending on the number and types of application, HFA may partially or fully fund applications.
Q: We are considering apply for NSP funds for landbanking and demolition. How great a proportion of the cost of either activity can be covered by NSP funds? A:
Up to 100% of land banking or demolition can be covered by NSP costs. However, remember that a) there is a leveraging preference; b) there is a $1,000,000 minimum county-wide investment; and c) this is a competitive application.
Q: Does an applicant have to have site control to be eligible for NSP funding? A:
Site control is not required for eligibility.
Q: Can the NSP RFP be submitted electronically? A:
No. The original and copy of the RFP must be submitted in hard copy form -- typed, tabbed, and bound.
Q: If we have a No Impact Letter, do we need to fill out the Environmental Section on pages 62-68 of the RFP? A:
No. The No Impact Letter will suffice.
Q: We are proposing a single building, rental-only project that is being developed on vacant land. Do we need to describe the proposed use of recycled funds as requested on page 21 of the RFP? A:
No. The question about the recycled use of funds does not apply in your case.
Q: Are we required to submit an EEO agreement and a W/MBE Utilization Plan at the time of application? A:
These documents are provided in the RFP for reference purposes. They will need to be executed at the time of contract if your application is approved.
Q: Does city-ownership of demolished or vacant properties disqualify a proposal? A:
No. City ownership does not preclude use under Activity 5.
Q: For NYC projects, is HFA applying State or NYC HPD income limits for renters and homebuyers? A:
Neither State nor NYC HPD income limits will be applied. NSP utilizes the HUD federal income limits for NYS for all projects.
Q: The Environmental Certification form on page 61 of the RFP requires an architect or engineer signature. Can a Certified Risk Assessor sign instead? A:
Yes.
Q: Does page 25 of the RFP, Site Control, Zoning and Demographic Info only apply to Activity 5, new construction projects? A:
No. It also applies to Activities 2, 3, and 4.
Q: Can an applicant that wishes to build new construction on a vacant lot utilized the funds from the low-income set aside? A:
No. To use funds from the low-income set aside, which targets households at 50% AMI, the project must be the acquisition and rehabilitation of abandoned or foreclosed homes, eligible activity 2 as stated on page 4 and 5 of the NSP RFP.
Q: May a property benefit from more than one eligible activity? A:
Yes.
Q: As part of acquisition costs, can back property taxes be paid with NSP funds? A:
Yes, as long as the applicant is not paying itself the back taxes.
Q: Are in rem properties that have been foreclosed for back taxes eligible? A:
Yes.
Q: How is vacant property defined? A:
"Vacant property" refers to vacant land or vacant building on the land.
Q: Does the 20% rule only apply to permanent financing where NSP funds were also used for construction? A:
According to the NSP RFP, yes. However, we have reviewed the provision upon hearing the concerns of potential applicants, and propose the following, subject to approval:
"There is no maximum per unit funding amount during construction. However, no more than 20% of NSP funds used during construction can be used as permanent financing; or 20% of the unsubsidized sales price can remain as permanent financing; or a maximum of $20,000 per unit can remain as permanent financing, whichever of the three is greatest."
Q: For the purpose of receiving administrative expenses, how is a subrecipient defined? A:
A subrecipient manages multiple Grantees and multiple Projects. Thus, a subrecipient is defined by the nature of the Proposal and the role to be played. If an organization is in fact considered a subrecipient for a proposed project, then that organization would be eligible for administrative expenses. However, if the organization is not deemed a subrecipient, project delivery costs and a 10% developer's fee are still permissible.
Q: Is an entire zip code area eligible for NSP funds if there is a census tract block group within that zip code with a Risk Score of at least an 8? A:
Yes. As long as there is at least one census tract block group with a Risk Score of an 8, 9 or 10, the entire zip code is eligible.
Q: Is it true that all NSP funds must be used to benefit households with incomes below 120% of the local Area Median Income? A:
Yes, all of the funds must benefit households with incomes below 120% of the Area Median Income ("AMI"). The more restrictive part is that 25% of these funds, the low-income set aside portion, must benefit households with incomes below 50% of the AMI. Please refer to pages 6-7 in the RFP for more information.
Q: Is the RFP available as a fillable form? A:
Yes, as of 1/6/09, it is available as a fillable word document.
Q: Does the 20% of funds that can be used for permanent financing only apply to homeownership projects? A:
No. This is applicable to rental housing as well. You may retain 20% of NSP funds used in construction for permanent financing.
Q: If a county is eligible for $250,000 in NSP funds, must the county leverage those funds with an additional $750,000? A:
Yes. A county eligible for $250,000 would be expected to leverage another $750,000 to reach the minimum investment amount of $1,000,000 per county.
Q: What documents do I need from the borrower? A:
Below is a list of forms or documents that are unique to SONYMA loans. Follow the instructions on how to complete these forms in the Submitting Pre-Closing Application Loan Files notes in order to maximize the possibility of getting a loan approval the first time the loan is reviewed.
Property Seller's Affidavit Required for all SONYMA loans Must be executed by the property seller as of the closing date.
Note: Form is waived for new construction, if the owner of the land and the builder are different individuals or entities or for foreclosed properties being sold by a foreclosing lender/investor.
Military Veteran's Eligibility Affidavit The eligible Veteran borrower must sign the affidavit only if the Veteran or any household member who holds title to the property is not a first-time homebuyer.
Please refer to the Low Interest Rate Program Term sheet, by clicking here
Q: What are the income limits? A:
Please refer to the Income Limits page, by clicking here
Q: What are purchase price limits? A:
Please refer to the Purchase Price Limits page, by clicking here
Q: Is there a minimum down payment requirement? A:
Financing of up to 97% of the value of the property for qualified borrowers and homes (for three and four family dwellings the maximum financing is 90%, and for cooperative apartments the maximum financing is 95%). A low minimum borrower cash contribution requirement of 1% of the value of the property (3% for 3-4 family & cooperative apartments). For more information please click here.
Q: Is down payment assistance available? Under what conditions and fees? A:
Please refer to the Down Payment Assistance Loan page, by clicking here
Q: Where can I find underwriting guidelines? A:
For more information on underwriting guidlines, please refer to the SONYMA credit and property underwriting notes, by clicking here
Q: Where can I find a product comparison chart? A:
Please refer to the product comparison chart by clicking here
Q: Where can I find current SONYMA rates? A:
Please refer to the current interest rates page by clicking here
Q: What fees are associated with SONYMA? A:
Please refer to pages 3 and 4 of the training module by clicking here
Q: What types of properties will SONYMA finance? A:
Please refer to the Low Interest Rate Program Term sheet, by clicking here
Q: Can seller concessions be used? A:
Yes, maximum seller concessions toward closing costs are 3% of purchase price for LTV's above 90% and 6% for LTV's 90% and less.
Q: Can home buyers own additional property with this product? A:
Please refer to the definition of First-Time Home Buyer by clicking here for the glossary.
Q: What marketing materials are available and how can I find them? A:
Please refer to the Brochures & Info section of the Lender Officers page, by clicking here
Q: How do I register/reserve a loan? A:
Please refer to the Lender Online User Guide by clicking here
Q: Where do I send borrowers for homebuyer education? A:
Please refer to Glenworth’s Homebuyer Education course by clicking here
Q: Who can I contact if I have further questions? A:
Please refer to the SONYMA staff directory on the Lender Officers page by clicking here
Q: Can AHC funds be used to leverage NSP funds? A: