Skip to Main Content

Homes and Community Renewal

Low Interest Rate Program Term Sheet

Program Features:

  • Competitive fixed interest rate loans;

  • No points;

  • Financing of up to 97% of the value of the property for qualified borrowers and homes (for three and four family dwellings the maximum financing is 90%, and for cooperative apartments the maximum financing is 95%);

  • A low minimum borrower cash contribution requirement of 1% of the value of the property (3% for three and four family dwellings & for cooperative apartments) .

  • 120 day interest rate locks for existing housing and completed new construction (short term lock in);

  • Term of 30 years only;

  • No prepayments penalties;

  • Down Payment Assistance of $3,000 or 3% of the home purchase price (not to exceed $15,000)

Eligible Borrowers must:

  • Be 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.

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 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 newly constructed (fully completed) or was constructed within the five years prior to the SONYMA loan application date;

  • 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 (exceptions can be made on a case by case basis).

Additional Considerations:

  • A SONYMA mortgage may not be used to refinance an existing mortgage and SONYMA mortgages are non assumable;

  • Applicants must complete a homebuyer education course if:

    • Applicant is  using either Achieving the Dream, RemodelNY , if the borrower's cash contribution in the transaction is less than 5% of the value of the property; if  the financing being requested is more than 95% of the value of the property; or CLTV exceeds 100%.

    • certain other conditions exist in connection with the loan application;

  • All loans with less than a 20% downpayment will require private mortgage insurance (PMI);

  • All loans must be approved for pool insurance by SONYMA's mortgage pool insurer;

  • All borrowers are subject to a potential "recapture tax" under Federal law. (Click here for details on recapture tax and how SONYMA will reimburse borrowers who have to pay a recapture tax.);

  • An applicant who has used more than 15% of their current residence (or a prior residence) for a business or commercial use in the past year, is not eligible for financing;

  • All of the units in a two- to four-family home must be located in one building. Properties with units in separate building structures are not allowed.

Regarding Coops and Condos:

Borrowers purchasing a condominium or cooperative unit must satisfy certain special requirements. (Click here for special requirements for condominiums and cooperatives.)

Exceptions for Borrowers Purchasing Homes in a Target Area:

Federal law provides certain special incentives for applicants purchasing homes in Federally-designated Target Areas. SONYMA is committed to helping revitalize these neighborhoods. The incentives are as follows:

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: 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.