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.)
  
  
• Construction Incentive Program - Specifically for newly constructed housing program. Features 97% financing. (Click here for more information on the Construction Incentive Program.)
  
  
• Remodel New York Program - SONYMA's purchase/renovation program offers first-time homebuyers* 97% financing for the purchase and renovation of an existing home. (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.

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.

No. SONYMA requires that an escrow account be maintained for all mortgage loans until the loan is paid in full.

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

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.

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.

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.

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 submit to SONYMA the "Request for Recapture Tax Reimbursement" form, together with the supporting documentation.

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.

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.

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.

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)

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.

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.

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.

The payment would be made to the mortgage servicer.

Note: If more than one borrower, a proportionate benefit is paid.

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.

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.

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.)

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.

No. SONYMA does not provide an Assignment of Mortgage for the purpose of avoiding mortgage taxes during the refinance transaction.

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).

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.

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.

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.

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).

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.

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

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.

For grant disbursement purposes, please contact the Program Manager. For all other questions regarding your grant, please contact the appropriate regional Project Manager.

Project monitoring is just one of several ways for AHC to ensure that Grantees are in compliance with AHC rules and regulations.

AHC should receive the original filed note and mortgage and the grantee should keep a copy for records purposes.

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.

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.

Click here for the AHC subordination request form. Please complete and submit to the Project Manager that handles subordination requests.

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.

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.

The homeowner may request approval of an assumption or pay off the remainder of the lien amount.

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.

Contact the Program Manager and return the check. The Program Manager will guide you through the appropriate process.

Once the grant agreement has been executed by both parties, the disbursement of funds may begin.

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.

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
    
    
  • sufficient cash, savings, or other assets for downpayment and closing costs;
    
    
• 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.

• 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 one of the following property types:
  
  
  • Existing or completed newly constructed one family home (includes condominiums and cooperatives);
    
    
  • 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).

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
    
    
  • sufficient cash, savings, or other assets for downpayment and closing costs;
    
    
• 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.

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:
  
  
  • Existing one 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).

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
    
    
  • sufficient cash, savings, or other assets for downpayment and closing costs;
    
    
• 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.

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;
  
  
• Is one of the following property types:
  
  
  • Existing or newly constructed one family home (includes condominiums and cooperatives);
    
    
  • 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).

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
    
    
  • sufficient cash, savings, or other assets for downpayment and closing costs;
    
    
• 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.

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 one of the following property types:
  
  
  • Newly constructed one family home (includes condominiums and cooperatives);
    
    
  • Newly constructed two family home located in a Target Area;
    
    
• 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).

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.

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 persons who are age 18 or older and who are expected to live in the SONYMA financed property regardless of whether they have signed or will sign the mortgage application.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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 submit to SONYMA the "Request for Recapture Tax Reimbursement" form, together with the supporting documentation.

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.

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.

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)

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.

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.

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.

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.

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.

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.

Grants are given to eligible applicants for new construction, acquisition/rehabilitation and home improvement projects.

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.

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.

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.

Depending on the type of project that the Grantee is administering, grants funds of up to $40,000 per unit may be available.

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 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

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.

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.

For current homeowners, funding can be obtained through home improvement projects only.

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.

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.

For home improvement projects, funds of up to $40,000 per unit may be available.

You may either find an income qualified family to assume your AHC note and mortgage, or you may repay the remainder of your loan.

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.

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.

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.

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.

To determine the amount of your repayment obligation, please click here for the repayment chart.

SONYMA provides below market 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.

Your clients will benefit from:

• Rates typically one-half to one percentage point below the 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;
  
  

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.)
  
  
• Construction Incentive Program - Specifically for newly constructed housing program. Features 97% financing. (Click here for more information on the Construction Incentive Program.)
  
  
• Remodel New York Program - SONYMA's purchase/renovation program offers first-time homebuyers* 97% financing for the purchase and renovation of an existing home. (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.

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
  
  
• Not use more than 15% of his/her current residence for business or commercial use.

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.

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.

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.)

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.

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.

Yes. An existing project with AHC does not prohibit an applicant from requesting or receiving additional funds.

To see the High Cost Area Table, please click here.

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.

AHC provides grants to build, acquire/rehabilitate or improve homes for low and moderate income families.

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.

If you are a municipality, not for profit or charitable organization, you may be eligible for a grant.

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.
  
  

For additional information, please e-mail us at: lender@nyshcr.org.

Click on Application Instructions to get detailed information on completing the application. Complete and submit the following original documentation to SONYMA:

• Lender Application Form (click here to download this form);
  
  
• Check for the Application Fee (click here to see current Application Fee Schedule);
  
  
• Participation Application (click here to download this form);
  
  
• 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.
  
  
• Two fully executed Mortgage Purchase Agreements (click here to download this form);
  
  
• Two fully executed Mortgage Servicing Agreements, if your company will also be servicing SONYMA loans (click here to download this form) (Learn more about servicing qualifications by clicking here);
  
  
• Counsel's Opinion;
  
  
• 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.

Click here to download SONYMA's Seller's Guide.

Click here to go to SONYMA's main program page.

SONYMA provides below market 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.

Your clients will benefit from:

• Rates typically one-half to one percentage point below the 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;
  
  

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.)
  
  
• Construction Incentive Program - Specifically for newly constructed housing program. Features 97% financing. (Click here for more information on the Construction Incentive Program.)
  
  
• Remodel New York Program - SONYMA's purchase/renovation program offers first-time homebuyers* 97% financing for the purchase and renovation of an existing home. (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.

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.

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.

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.)

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
  
  
• Not use more than 15% of his/her current residence for business or commercial use.

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.

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.

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 persons who are age 18 or older and who are expected to live in the SONYMA financed property regardless of whether they have signed or will sign the mortgage application.

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.

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.

Proceed with the following steps:

1. 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).
     

2. 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).
   

3. 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.
   
   
4. 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.

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.

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.

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.

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.

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

BROOKLYN
55 Hanson Place
Room 304
Brooklyn, N.Y. 11217
(718) 722-2856

LONG ISLAND (Main Office)
175 Fulton Avenue
Hempstead, N.Y. 11550
(516) 538-1360

SUFFOLK
State Office Bldg.
Veteran's Memorial Bldg.
Hauppauge, N.Y. 11787
(631) 952-6434

PEEKSKILL
8 John Walsh Blvd.
Suite 204
Peekskill, N.Y. 10566
(914) 788-8050

ALBANY
Empire State Plaza
Agency Bldg. 2, 18th Fl.
Albany, N.Y. 12220
(518) 474-2705

SYRACUSE (Branch Office)
333 E. Washington St.
Room 443
Syracuse, N.Y. 13202
(315) 428-4633

BINGHAMTON
44 Hawley Street
6th Floor
Binghamton, N.Y. 13901
(607) 721-8467

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

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.

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.

• One-family homes (including condominiums, PUDs, homeowners's associations, cooperatives, and double-wide manufactured housing permanently attached to real property); and
  
  
• Two-family homes located in a Target Area.

• 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.)

• 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.

• 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.

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.

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.

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.

• Fully completed SONYMA Project Set-Aside application (Click here for Application form);
  
  
• Dated and approved Offering Plan (inclusive of operating budget);
  
  
• Appraisals (master or unit - not more than 6 months old) (if a PUD, the PUD Addendum must be attached);
  
  
• Fully completed condo or coop questionnaire;
  
  
• Promotional literature;
  
  
• Engineer's report (asbestos report), if a rehab;
  
  
• Letter of Intent from a SONYMA participating lender (Click here to obtain a list of participating lenders);
  
  
• Grant documentation;
  
  
• Professional property management agreement;
  
  
• Additional documents may be required depending on project type.

• Applicants do not have to be first-time homebuyers;
  
  
• Household income and home purchase price limits are higher; and
  
  
• Two-family newly constructed homes are eligible.

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.

Click here for the AHC's Affordable Home Ownership Development Program Briefing Sheet.

By merging efforts with an eligible applicant or current Grantee.

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.

Eligible applicants for grant funds are municipalities, including municipal housing authorities and housing development fund companies, not-for profit corporations and charitable organizations.

Click here for a list of our current Grantees.

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:

*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.

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.

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.

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.

No. The MHCFP can only make affordable loans to park residents who are able to persuade a park's current owner to sell.

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.

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.

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.

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.

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.

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.

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

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.

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.

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 submit to SONYMA the "Request for Recapture Tax Reimbursement" form, together with the supporting documentation.

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.

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.

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.

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)

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.

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.

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.