FAQ

• One-family homes (including condominiums, PUDs, homeowners's associations, cooperatives, and double-wide manufactured housing permanently attached to real property); and
  
  
• Two-family homes located in a Target Area.

• 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 a maximum of 5 acres (exceptions can be made on a case-by-case basis);
  
  
• Have at least 500 square feet of living space;
  
  
• Meet SONYMA's project requirements, if a condominium or cooperative. (Click here to see the project requirements for condominiums and cooperatives.)

• 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.

• Meet SONYMA's credit underwriting guidelines (SONYMA accepts most decisions from Fannie Mae's Desktop Underwriter® and Freddie Mac's Loan Prospector®.);
  
  
• Contribute a minimum of 1% (3% on cooperatives) of their own funds into the transaction;
  
  
• Be a first time homebuyer (have not had an ownership interest in their primary residence at any time during the three years prior to the date of the SONYMA mortgage application AND does not currently own a vacation or investment home). (See the related question below about Target Areas.);
  
  
• Meet SONYMA's Household Income Limits (click here to find the Household Income Limits for your area);
  
  
• Occupy the SONYMA-financed home as their permanent residence.

By approving projects for builders, developers, and local community sponsors as a Project Set-Aside, SONYMA gives developers a powerful marketing tool by enabling them to offer low-cost, fixed-rate mortgages to qualified buyers.

A full range of community development and neighborhood preservation activities are eligible under Project Set-Aside. Projects may include the renovation of existing structures; both small or extensive new construction developments; conversion of lofts, factories, and school type buildings; mid and high rise condominiums and cooperatives; fee-simple townhouses; garden-style projects and standard subdivisions.

Without a Project Set-Aside approval, SONYMA will finance a maximum of 3 loans in a newly constructed or rehabilitated development. With a Project Set-Aside approval, SONYMA will finance more units.

Many factors determine how many units we may finance in a development. In general and depending on the size of the project, SONYMA may finance up to 50% of the units. Typically we will initially approve a lower amount and then make a decision to finance more as the units begin to sell.

• 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.

• Applicants do not have to be first-time homebuyers;
  
  
• Household income and home purchase price limits are higher; and
  
  
• Two-family newly constructed homes 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.

Click here for the AHC's Affordable Home Ownership Development Program Briefing Sheet.