ON THE COVER
Practicing patience can be helpful for the first homebuying experience, says Paul Hurley, CRA loan officer with M&T Bank.
carry private mortgage insurance, a monthly surcharge imposed on buyers who finance more than 80 percent of the property’s cost.
“It’s a very healthy way financially to start out your homeownership journey,” says Levy, who adds that the down payment assistance programs are particularly popular among lenders. “Tons of new lenders are coming to us and in fact we’re having trouble keeping up with the requests.”
Maximizing value
There is a lot of value in SONYMA’s products, says Paul Hurley, community reinvestment act loan officer with M&T Bank, a SONYMA partner lender.
“I think for a first time homebuyer it’s one of the better programs available,” says Hurley. “I have found that the SONYMA program works as well as anything else — or better in most cases — when it comes to other grant programs as well.”
A SONYMA mortgage is no more complex than a conventional loan, says Hurley, but first-time homebuyers should do their due diligence and explore all programs and add-ons. SONYMA’s below-market interest rate and down payment assistance are two of the biggest perks, but the program also allows lenders to stack all available and qualifying grants, says Hurley.
SONYMA also offers buyers with no credit the opportunity to build an alternative credit history, says Hurley. Borrowers can use rental history, utility payments and phone bills to establish credit-worthiness.
Expanding the criteria used to evaluate responsible financial management is part of what’s called the Give Us Credit, a SONYMA add-on program aimed at reducing lending discrimination, overcoming racial disparities and closing the housing wealth gap.
SONYMA is constantly exploring ways to aid under-served communities, lift blighted neighborhoods and boost the stock of
affordable — and liveable — homes, says Levy.
“One of the things we’re very mindful of and focused on a lot is that we really want to see homeowners of color get access to the market,” says Levy.
Changing underwriting criteria is one way SONYMA is increasing penetration in disenfranchised markets. Rebuilding communities and expanding access to affordable starter homes is another.
The Neighborhood Revitalization Program offers incentives to
buyers who qualify for SONYMA lending and wish to purchase a home in need of repair. Owneroccupant buyers can receive up to a $20,000 subsidy, in addition to other features like down payment assistant, that can be used toward repairs deemed “necessary” by SONYMA. The goal is to improve property values and provide longterm sustainable growth.
In addition to improving affordability, SONYMA is also committed to expanding the inventory of reasonably-priced homes,
which is why the agency is working in tandem with the New York State Affordable Housing Corporation on the Affordable Homeownership Development Program. The plan provides grants to governmental, not-for-profit, charitable groups and in some cases home builders to foster the renovation of existing housing
and the new construction of moderately-priced, high-quality starter and multi-family homes in distressed communities and neighborhoods.
“We’ve lost the starter home,” says Levy. “This is a huge opportunity to create this whole new class of affordable first-time homeownership opportunities.”