mortgages :: SONYMA :: Achieving the Dream Program

SONYMA - Achieving the Dream Program

SONYMA's Achieving the Dream Mortgage Program provides qualified low income first time homebuyers with low downpayment mortgage financing on one and two family dwellings (including condominiums and cooperative apartments, as well as manufactured homes permanently attached to real property) at a very low fixed interest rate.

Program Features:

• Very low fixed interest rate;
• 1 point or origination fee;
• Financing of up to 97% of the value of the property for qualified borrowers and homes (for cooperative apartments, the maximum financing is 90%);
• A low minimum borrower cash contribution requirement of 3% of the value of the property (5% for cooperatives);
• 100 day interest rate locks for existing housing (short term lock in) and 220 days for properties under construction or rehabilitation (long term lock in);
• Terms of 30 and 40 years only (interest rates for 40 year mortgages are 0.125% higher);
• No prepayment penalties;
• Closing Cost Assistance;
• Payment Protection in the event of temporary job loss or accident.

Eligible Borrowers must:

• Be a first time homebuyer as defined by SONYMA;
• 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;
• 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.

Eligible Properties must:

• Be located in New York State;
• Have a sales price and appraised value (as determined by a professional real estate appraiser) that does not exceed SONYMA's Purchase Price/Appraised Value limits (click here to see Purchase Price/Appraised Value Limits for your area);
• Not be used for any business or commercial purpose;
• Be one of the following property types:
  • Existing or newly constructed one family home (includes condominiums and cooperatives);
  • Existing two 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 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;
• All applicants must complete a homebuyer education course;
• SONYMA will require a 1% lock in deposit to be paid by the applicant at loan 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;
• An applicant whose spouse, domestic partner, fiance, or fiancee (who is not an applicant) does not meet SONYMA's definition of first time homebuyer and therefore, is not eligible for financing.
• Funds are limited and available on a first-come, first-served basis.
• An applicant who has used more than 10% of their current residence (or a prior residence) for a business or commercial use in the past year, is not eligible for financing.

Regarding Co-ops and Condos:

Borrowers purchasing a condominium or cooperative unit must satisfy certain special requirements.

Payment Protection in the Event of Job Loss or Accident

Most Achieving the Dream Mortgage Program borrowers can have peace of mind by knowing that if temporary involuntary unemployment or an accident prevents them from making their monthly mortgage payment, coverage is provided at no additional cost.

Features of HomeOpeners® MonthlyPlus payment protection plan:

• Pays up to $2,000 per month towards your monthly mortgage payment (including principal, interest, taxes and insurance) if either you or your co-borrower become involuntarily unemployed for more than thirty (30) days. Up to six (6) monthly payments will be made.
  Note: If more than one borrower, a proportionate benefit is paid.
• No additional cost to you. The cost of this coverage is paid by Genworth Mortgage Insurance Corporation for any borrower obtaining PMI insurance through Genworth Mortgage Insurance Corporation.
  

Note: HomeOpeners® MonthlyPlus is only available to SONYMA borrowers who obtained PMI insurance through Genworth Mortgage Insurance Corporation.