The State of New York Mortgage Agency (SONYMA) and the New York State Division of Veterans’ Affairs announced the details of the Homes for Veterans Program that will help New York’s military veterans achieve the dream of homeownership.
“The Homes for Veterans Program is a substantial way for New York State to thank those New Yorkers who have served their state and their country,” said New York State Division of Veterans’ Affairs Director George P. Basher. “This is an unprecedented opportunity for New York veterans to achieve the American Dream. The Division of Veterans’ Affairs is proud to be a part of this program.”
Eligible veterans purchasing a home through the Homes for Veterans Program will receive below market mortgages with fixed interest rates as low as 4.875% to buy their first home or a new home. These rates are 0.5% lower than those available through SONYMA’s standard below-market low interest rate mortgages, and are substantially lower than the conventional interest rates available through regular banking channels and through national home loan guaranty programs for veterans. Eligible veterans, their spouses or coborrowers do not have to be first time homebuyers in order to qualify for this program, but will have to satisfy SONYMA’s income and home purchase price limits as well as other requirements.
The Homes for Veterans Program is the most affordable homeownership program SONYMA offers. In just the first year of homeownership, the average veteran could save approximately $4,000 when compared to SONYMA’s already below market low interest rate mortgage.
Veterans eligible for the Homes for Veterans Program can also take advantage of other SONYMA mortgage products, including SONYMA’s Closing Cost Assistance Loan (CCAL). CCAL allows borrowers to receive either $5,000 or 5% of their total loan amount – whichever is greater – to cover expenses associated with closing a mortgage loan. CCAL requires no monthly repayment, is interest free and is forgiven after ten years.
National home loan guaranty programs for veterans generally require down payments of up to 10%, require payment of borrower points, and do not offer closing cost assistance.
To qualify, veterans must provide proof of active duty and proof of release from duty under conditions other than dishonorable by submitting DD Form 214, Certificate of Release or Discharge from Active Duty.
Additionally, veterans must satisfy SONYMA’s income and home purchase price limits as well as other eligibility requirements. Maximum annual incomes for SONYMA programs range from $35,630 to $67,550 for the Achieving the Dream Program and $63,100 to $135,100 for all other programs. The limits vary based on the program selected, the household size and the location of the prospective home.
SONYMA is a public benefit corporation of the State of New York created in 1970. The Agency’s mission is to create affordable homeownership opportunities for low and moderate income first time homebuyers and other qualifying homebuyers. In addition, SONYMA’s homeownership programs help stabilize and rebuild federally designated economically depressed Target Areas throughout New York State by enhancing opportunities for homeownership.
The New York State Division of Veterans’ Affairs was created in 1945 as part of the Executive Department to assist veterans, members of the armed forces, their families, and their dependents in securing benefits earned through military service.
Tags: Homes for Veterans Program, SONYMA Mortgage, State of New York Mortgage Agency, www.nyhomes.org
