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SONYMA - Construction Incentive Program
SONYMA's Construction Incentive Program was created in an effort to stimulate the construction of one and two family homes. The program features 100% financing, a special two step interest rate, and a longer rate lock period. |
Program Features:
- Two step interest
rate. The initial rate is fixed for the first 48 payments,
then increases 2% and is fixed for the remainder of the loan
term;
- 1
point or origination fee;
- Financing of up to 100% 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 properties
with maximum
financing of 90%). For borrowers
requesting 100% financing, the 3% must be applied to closing costs;
- 240
day interest rate lock from loan application;
- Applicants will
be qualified at the lower initial rate;
- Term of 30 years only;
- No prepayment penalties;
- Closing Cost
Assistance is available from SONYMA only after the borrower
has contributed 3% of his
or her funds to the
loan transaction.
Eligible Borrowers must:
- Be a first
time homebuyer as defined by SONYMA (This requirement is waived
if the borrower seeks 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;
- 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.
Eligible
Properties must:
- 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 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;
- 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:
- SONYMA mortgage may not be used to
refinance an existing mortgage and SONYMA mortgages are non assumable;
- Applicants
must complete a homebuyer education course if:
- the borrower's
cash contribution in the transaction is less than 5% of
the value of the property, or
- the financing being requested is more
than 95% of the value of the property, or
- certain other conditions
exist in connection with the loan application.
- 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.
- SONYMA reserves the right to refuse
any loan application which will not close within 240 days of loan application.
- 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.
Exceptions for Borrowers Purchasing
Homes in a Target Area:
Federal law provides certain special
incentives for applicants purchasing homes in Federally-designated
Target
Areas. SONYMA
is committed to helping
revitalize
these neighborhoods. The incentives are as follows:
- The first time homebuyer
requirement is eliminated;
- Household Income
and home Purchase Price Limits are higher;
- Two family homes
that are newly constructed or are less than 5 years old are eligible.
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.
The Mid-Island Mortgage Corp. Difference.
What separates Mid-Island Mortgage Corp. from everyone else is our solid track record and proven stability since 1959. Mid-Island Mortgage Corp. is your personal mortgage banker, regardless of trends and market cycles. While many of the new players to the home mortgage field have abandoned the community, chasing the next "hot market" to take advantage of, Mid-Island Mortgage Corp. is still happily serving you, your family and your neighbors.
Our commitment to the thousands seeking the dream of home ownership is one of the many reasons we say "you always have a home with us!"
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