Special Loan Program For 1st Time Buyers In NY
If you’re looking to purchase your first residence in New York but find yourself at a loss as to where to turn for a mortgage loan. You need not worry. First time home buyer loans in New York are provided by the State of New York Mortgage Agency (SONYMA). Not only do they provide below-market rates on your mortgage loan, they also provide other programs for 1st time home buyers.
Here are some details on SONYMA’s loan program:
- 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.
For complete details on this loan, including contact information and instructions on how to apply, please visit this SONYMA loan page.
More New York First Time Buyer Resources
In addition to the above first time homebuyer loan from SONYMA, there are resources available as well. Be sure to visit New York down payment assistance, as well as our page that shares details about grants available in NY to purchase your first home.