SONYMA Helps Out First-Time Homebuyers

NYS Homes and Community Renewal (HCR), which includes all the integrated housing community renewal agencies of New York, recently announced a new State of New York Mortgage Agency (SONYMA) program. The Own it, Fix it New York! Home Mortgage, developed by HCR is for low- and moderate-income first-time homebuyers and is designed to help stabilize neighborhoods and property values by improving the quality of New York’s housing stock.

The program is available to qualified homebuyers for the purchase and repairs of homes that have been foreclosed or sold as a “short sale” and have not been renovated and/or maintained due to owner hardship. SONYMA offers very competitive interest rates.

The key features of the Own it, Fix it New York! Home Mortgage:

  • Below-market interest rate financing up to 97% of the “after-improved” appraised value of the property -or- the home purchase price plus repairs (whichever is lower)
  • Availability of down payment assistance: $3,000 -or- 3% of the home purchase price, not to exceed $10,000 (Whichever is higher)
  • Eligible repairs allowed up to 20% of the “after-improved” appraised value -or- $25,000 (whichever is lower)
  • Eligible properties are existing one- and two-family homes, Planned Unit Developments and condominiums. Any property in need of repair is eligible.

Here is an example of how the program might work for the average SONYMA borrower with an income of $60,000 who purchases a $215,000 home. If the home needs $20,000 in repairs, the applicant could qualify for financing up to 97% of the lesser of 1) the purchase price of the home plus renovation costs, or 2)the appraised value of the property after the proposed repairs have been made. If the after-renovation appraised value is $235,000, for example, the borrower could finance up to $227,950 (97% of $235,000). In this example, the borrower could qualify for $6,450 in down payment assistance and would need to have $3,200, plus closing costs at the time of the transaction.

Christine Nothnagle, President of Nothnagle Home Securities and member of the SONYMA Advisory Council said, “I commed HCR for recognizing the challenges we face in the current lending arena. The Own it, Fix it New York! Home Mortgage will allow borrowers to purchase a property which has deferred maintenance due to our current economic climate. Many buyers may have the funds necessary to purchase and close on the home, but lack the additional opportunity to take advantage of the low interest rates of today and finance necessary and desired improvements. This will help our overall economy by retuning a neglected property into a pride of ownership home for the entire neighborhood.”

Lenders will begin accepting applications on April 1, 2011. Learn more about Own it, Fix it New York! Home Mortgage.

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