All NYSHFA bond financed mortgages must be secured by a form of credit enhancement. Credit enhancement provides security for the holders of Agency bonds and impacts the bond rating. A higher rating translates into a more favorable bond interest rate and ultimately a lower mortgage rate.
Third Party Credit Enhancement Program
This is the credit enhancement program to use in developing a multifamily project under The 80/20 Program. It can also be utilized with any of the other Agency bond financing programs.
SONYMA Mortgage Insurance Fund Credit Enhancement Program
Typically used in connection with fixed rate bond financings of affordable multifamily housing financings of between $1 million and not more than $20 million.