FAQ

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.

• 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.

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;
  
  
• 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.

• 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.

Your clients will benefit from:

• Rates typically one-half to one percentage point below the conventional market for 30 or 40 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 $10,000);
  
  
• Flexible underwriting guidelines with no pricing adjustments, and;
  
  
• Job loss protection for eligible borrowers (click here to learn more about this product).

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.

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).

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.