SONYMA Offers 2% Mortgages in Support of Homes Built by Habitat for Humanity

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NEW YORK, NY (04/07/2008)(readMedia)-- The State of New York Mortgage Agency (SONYMA) today announced that it would launch an innovative $5 million, 2% fixed-rate mortgage program in support of the Habitat for Humanity homeownership program in New York State. The program will create new resources for affordable home production across the state.

SONYMA will also offer closing cost assistance to borrowers as part of its low-cost mortgage partnership with Habitat.

“This program is a win-win program for first-time homebuyers,” said Priscilla Almodovar, President and Chief Executive Officer of SONYMA. “We guarantee that Habitat homeowners will continue to get a mortgage they can afford. In addition, SONYMA financing will free up Habitat resources so it can build more homes and serve more low-income families.”

“We are delighted that SONYMA and Governor Paterson will be supporting the work of our 53 New York State affiliates and the thousands of families we serve,” said Judith Nelson, President and CEO of Habitat for Humanity of New York State, “Habitat’s unique building model transforms the lives of our low-income homeowners, improves communities-and brings people from every walk of life together to solve our state’s housing problems.”

Josh Lockwood, Executive Director of Habitat for Humanity - New York City, said, “In New York City and across the state, this exciting partnership with SONYMA will empower us to provide increased affordable homeownership opportunities for hardworking families, such as the secretaries, janitors, bus drivers and nursing aides who are among the people seeking a ‘hand up, not a hand out’ from Habitat for Humanity.”

SONYMA is a State agency that provides low interest rate mortgages to low- and moderate-income homebuyers. SONYMA will offer the SONYMA-Habitat program to all 53 Habitat for Humanity affiliates across the state.

Habitat for Humanity builds homes for low-income, first-time homebuyers. For this program, Habitat owners can have annual incomes up to either 80% of the Area Median Income in their region or 80% of the statewide median income, whichever is higher.

“Thanks to this innovative new program, Habitat affiliates will have a choice between a traditional Habitat mortgage and a SONYMA product,” Judith Nelson said. “It will give us flexibility and allow us to expand much-needed homeownership opportunities to low-income families, while maintaining the subsidies that are crucial to their success.”

Homeowners participating in the SONYMA-Habitat program will be able to take advantage of other features of SONYMA’s low-interest mortgage program, including no points, a $400 limit on bank fees and the option of closing-cost assistance.

Under SONYMA’s closing-cost assistance program, homeowners can borrow up to $5,000 or 5% of the SONYMA mortgage loan amount (whichever is higher) to help pay closing costs. No monthly payments are required and the closing-cost assistance loan is forgiven after 10 years.

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SONYMA was created in 1970 with the mission of helping low- and moderate-income families become homeowners. It offers a variety of low down payment mortgages that provide below-market fixed interest rates, as well as closing cost assistance through a network of participating lenders across the state.

Habitat for Humanity of New York State is a coalition of 53 Habitat for Humanity affiliates serving communities across New York. HFH-NYS provides training resources, financial programs and coordinates statewide advocacy and awareness campaigns.

State of New York Mortgage Agency, www.nyhomes.org

SONYMA Contact: Philip Lentz, Director of Communications, 212-688-4000 x679, plentz@nyhomes.org

Habitat for Humanity of New York State, www.habitatnys.org

Habitat Contacts: Judith Nelson, President & CEO, Habitat for Humanity of New York State, 607-748-4138; Josh Lockwood, Executive Director, Habitat for Humanity – New York City, 212-991-4000 ext. 308, 917-450-1350

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