SONYMA highlights and eligibility requirements
SONYMA programs are offered to New York state first-time home buyers, as well as repeat buyers purchasing in a federally designated target area.
Highlights
- Must meet county limits on household income and purchase price.
- Credit requirements vary by program.
- Borrower cash contribution of 1%-3% of purchase price.
- Must attend a home buyer education course.
- Additional requirements apply when purchasing a condo or co-op unit.
New York state first-time home buyer programs
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What you need to know:
Applicants who are first-time home buyers with low incomes can apply for the Achieving the Dream program. With a ten-year loan, borrowers will benefit from lower interest rates and a minimal down payment requirement of 1% to 3%. A one- to four-unit residence, such as a manufactured home attached to a permanent foundation, a condo, or a cooperative, may be purchased and renovated with a mortgage. In order to receive funds for renovations and repairs as well as assistance with the down payment, borrowers can combine Achieving the Dream with other SONYMA programs.
Conventional Plus Program
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What you need to know:
This loan combines many features into a single program and is only available for primary residences. This 30-year purchase loan, which combines flexible loan approval standards with down payment assistance, is like having a Swiss army knife for mortgage assistance. In order to help borrowers avoid paying a monthly mortgage insurance premium, that assistance can also be used for closing costs and an upfront payment for mortgage insurance. Both first-time purchasers and current homeowners who fit certain income requirements are eligible.
Low Interest Rate Program
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What you need to know:
Qualified home buyers get a favorable interest rate in SONYMA’s Low Interest Rate Program. The program lets you lock in an interest rate for 120 days for existing housing, or 240 days for co-ops, distressed sales or properties under construction. Check the SONYMA website to compare current SONYMA interest rates, though. You might get an even lower rate through the Achieving the Dream Program, if you are eligible.
Down Payment Assistance Loans
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What you need to know:
Any SONYMA mortgage program can be paired with a loan for down payment assistance. Despite being a loan, there are no interest fees and no monthly payments needed. Actually, if borrowers keep up their primary SONYMA financing and continue to reside in the home, the loans are forgiven after ten years. The minimum down payment assistance loans are $1,000. The maximum loan amount is $3,000. The maximum amount is 3% of the home’s purchase price (E2%80%99s) or $3,000, whichever is higher, up to a $15,000. Closing costs can also be covered by a down payment assistance loan, as was previously mentioned. If you receive down payment assistance for a SONYMA loan, your interest rate may increase slightly; however, certain programs are not affected by this increase. Some lenders may not offer down payment assistance loans.
Homes for Veterans Program
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What you need to know:
This program aims to help veterans and active-duty U. S. Even if it’s not their first home, military personnel purchase homes. The loans are combined with the SONYMA Down Payment Assistance Loan and have favorable terms. Military-affiliated borrowers typically receive lower interest rates and are exempt from first-time buyer requirements, including spouses and co-borrowers.
RemodelNY
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What you need to know:
For properties financed through the Low Interest Rate or Achieving the Dream mortgage programs, RemodelNY is an optional add-on. Additionally, money from the Homes for Veterans enhancement program may be applied. RemodelNY funds can assist you in purchasing a fixer-upper or a house that just needs a few upgrades.
Energy Star Labeled Homes Program
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What you need to know:
With this program, you can install energy-efficient upgrades (like insulation or appliances) when building a new home or purchasing one already built and pay a slightly lower interest rate than the SONYMA standard rate. If you are eligible, you can combine the Energy Star Labeled Homes Program with a SONYMA mortgage and a Down Payment Assistance Loan. A certified Home Energy Rating System, or HERS, rater must conduct a third-party inspection of the property in order for it to qualify.
FHA Plus Program
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What you need to know:
FHA loans have more lenient requirements than conventional mortgages. The FHA Plus Program, which is available to both new and current homeowners, combines SONYMA’s down payment assistance with an FHA-backed mortgage. You may be able to lower the mortgage insurance premium on an FHA loan by doing this.
Graduate to Homeownership Program
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What you need to know:
An innovative program geared to recent college graduates, SONYMA provides down payment assistance, favorable interest-rate loans and homebuying education to prospective borrowers. For fixer-uppers, this program can be combined with funds from the RemodelNY program. Income limits and other requirements apply. A unique qualifier: Applicants must be looking to buy their first home in specified upstate New York communities slated for downtown revitalization. See a list of eligible locations on the SONYMA website.
Neighborhood Revitalization Program
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What you need to know:
Making improvements to neighborhoods and reviving communities is a top priority for New York state’s home buyer initiatives. The Neighborhood Revitalization Program provides potential homeowners with up to $20,000 to renovate a property that requires repairs. These funds, which were previously limited to a select group of communities, are now available throughout the state and can be used in conjunction with other SONYMA initiatives. Income limits apply.
Manufactured Home Mortgage Program
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What you need to know:
Through SONYMA, buyers with low to moderate incomes can be eligible for a manufactured home purchase or refinance loan. Residents who own their own land or lease it in a manufactured home community can apply for these mortgages.
Give Us Credit
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What you need to know:
In general, mortgage lenders prefer to see two years of consistent work history prior to granting mortgage approval to borrowers. However, the financial history wasn’t all that predictable for some prospective buyers. For first-time home buyers, the Give Us Credit program provides more accommodating guidelines to demonstrate financial readiness. This implies that those who have overcome financial difficulties (like bankruptcy or foreclosure) and those who depend on support from friends and family or sporadic sources of income are also eligible. The Down Payment Assistance Loan is included in this 30-year fixed-rate mortgage. Compared to other loans, the credit review is more flexible, and co-buyers who are not residents can also contribute.
Keep in mind that the lender you choose might have additional requirements for borrowers than those listed in any SONYMA support program. They may include credit score minimums or other credit qualifications. Thus, research the programs you’re interested in, gather as much information as you can, and then discuss your options with a few lenders.
To find participating lenders, search the SONYMA lender list.
First-time home buyer programs near New York
To use these federal programs, you don’t need to live in the Empire State. They are an excellent place to start before delving deeper into state-approved programs.
Conventional mortgage
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What you need to know:
A conventional mortgage is a type of home loan for which the federal government does not provide guarantees or insurance. Conventional mortgages that meet the guidelines set forth by Fannie Mae and Freddie Mac permit down payments as low as 3% for first-time buyers or buyers of homes with lower incomes. Conventional loans, as opposed to FHA loans, permit borrowers to ultimately cancel their mortgage insurance or forego mortgage insurance entirely provided they put down at least $2020.
VA loans
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What you need to know:
The U. S. The Department of Veterans Affairs assists veterans, service members, and widows in purchasing homes. VA loans are particularly liberal, offering favorable interest rates and frequently not requiring a down payment or mortgage insurance. The majority of VA-approved lenders demand credit scores of at least 640, even though there isn’t an official minimum score.
FHA loans
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What you need to know:
For many first-time homebuyers with lower credit scores, this is the preferred program. The Federal Housing Administration permits three percent down payments. 5% for those with credit scores of 580 or higher. The FHA will guarantee loans to borrowers with scores as low as 500, but for borrowers with scores that low, a 2010 percent down payment is required. For the duration of an FHA loan, mortgage insurance is necessary and cannot be canceled.
USDA loans
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What you need to know:
For qualified buyers of homes in eligible rural and suburban areas, a USDA home loan requires no down payment. USDA loans are issued by the U. S. Department of Agriculture via the USDA Guaranteed Housing Loan Program for Rural Development There are income limitations, which vary by region. Applications that have a credit score of 640 or above are processed more quickly. Those who score lower than that are subject to stricter underwriting requirements.
FAQ
What do first time home buyers get in New York?
Prospective homeowners will receive a certificate attesting to their eligibility for a forgivable loan of up to $100,000 toward the down payment or closing costs on a new home after successfully completing the Homebuyer Education course.
What is the minimum down payment on a house in New York?
The average down payment a buyer for a house in New York needs to provide is 2020%. Although a buyer is not required by law to put down 20% of the total amount, this is the standard for traditional financing. Typically, until closing, half of these funds are kept in escrow.
Is it a good idea to get a FHA loan?
First-time homebuyers or those with less than ideal credit histories are frequently advised to apply for FHA loans because they are frequently easier to qualify for, have more affordable mortgage rates, and require less cash up front to purchase a property.
How much money should I save before buying a house?
A reasonable amount to aim for when saving for a house is 25% of the sale price to cover your down payment, closing costs, and moving expenses (This sum is not the same as the three to six months’ worth of typical living expenses that you should set aside in a fully funded emergency fund before you start saving for a house.) ).
Read More :
https://www.nerdwallet.com/article/mortgages/new-york-state-first-time-home-buyer-programs
https://www.nyc.gov/site/hpd/services-and-information/homefirst-down-payment-assistance-program.page