NEW YORK, NY (05/29/2007)(readMedia)-- The State of New York Mortgage Agency (SONYMA) and the New York State Division of Veterans’ Affairs today announced the details of the Homes for Veterans Program that will help New York’s military veterans achieve the dream of homeownership.

Governor Spitzer formally announced the new program on Memorial Day as part of a series of measures designed to assist families of deployed soldiers and other military personnel in New York.

"Those who have served our nation in the military have earned our support in their efforts toward home ownership," Governor Spitzer said.

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 co-borrowers 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,” said SONYMA President and Chief Executive Officer Priscilla Almodovar.

“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.”

Mortgages offered through the Homes for Veterans Program will not require payment of borrower points and will require a down payment of only 3%. Unlike other SONYMA programs, the Homes for Veterans Program will require only 1% of the home purchase price to come from the borrower’s own funds, while the remaining 2% can come from a gift or other acceptable sources of financing.

Veterans eligible for the Homes for Veterans Program can also take advantage of other SONYMA 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.

Homes for Veterans Program mortgages will be available exclusively through M&T Bank throughout New York State.

"At M&T Bank, we believe that every veteran who has served our country in the armed services deserves to fulfill the American Dream. We're proud to work with Governor Spitzer and SONYMA to help make the dream of homeownership a reality for veterans in New York State," said James J. Beardi, Executive Vice President of M&T Bank.

Veterans can call SONYMA toll free at 1-800-382-HOME (4663) to get contact information for M&T Bank representatives specializing in Homes for Veterans Program mortgages. M&T Bank is a SONYMA participating lender.

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.

For more information about all of SONYMA’s programs in both English and Spanish, call 1-800-382-HOME (4663), or visit the Agency’s website at www.nyhomes.org.

SONYMA’s website provides program descriptions, helpful definitions of common home-buying terminology, FAQs for home buyers, current interest rates, and more. This information is also available in Spanish by clicking the “Español” link or the “Obtenga una hipoteca de SONYMA” (“Get a SONYMA Mortgage”) button on the Agencies’ homepage.

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.

State of New York Mortgage Agency (SONYMA) Contact: Tiffany Berns 212-688-4000, Ext. 681 TBerns@nyhomes.org, http://www.nyhomes.org

New York State Division of Veterans’ Affairs Contact: Michelle LaRock 518-474-6114 MLaRock@veterans.state.ny.us, http://www.veterans.state.ny.us

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Posted Tuesday May 29, 2007 at 02:28 pm by New York State Housing Finance Agency