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 properties with maximum financing of 90%);
100 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:
- the borrower's cash contribution in the transaction is less than 5% of the value of the property; or the financing being requested is more than 95% of the value of the property; or
- certain other conditions exist in connection with the loan application;
SONYMA will require a 1% lock in deposit to be collected within 14 days from application. The deposit will be refunded to the borrower or credited towards closing costs except if the applicant cancels or withdraws their loan application, or makes a material misrepresentation on their 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 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:

The first time homebuyer requirement is eliminated;
Household Income and home Purchase Price Limits are higher (See SONYMA's Household Income Limits and Purchase Price Limits.);
Two family homes that are newly constructed or are less than 5 years old 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.

Last updated: 11/14/12

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