Thoughts on SONYMA home loans?

jess_hp · February 2010

Hi,

My husband and I live in Rochester and are considering buying our first home. I have been reading about the State of New York Mortgage Agency (SONYMA) and it seems like they have something good to offer. They have low interest rates, require a very small down payment, and even offer closing cost assistance and a tax credit advance loan. I was just wondering if any of you had worked with SONYMA or had heard anything good or bad about them? Thanks!

Cutemin · February 2010

Sony Ma mortgages are a PITA. Just a lot of extra paperwork, takes longer to close. And the mortgage rate the last couple years hasn't been much better than a good old FHA or conventional mortgage. One of the first purchase offers I ever wrote was with a Sony Ma mortgage, I had a top producing Realtor look over my offer and the first thing he said was that he NEVER advises his sellers to accept Sony Ma because it is too troublesome. In this market, I doubt many agents would do that, but if you were up against multiple offers, financing could be the deciding factor. Talk to a mortgage broker from a brokerage, not a bank. They shop around for you and will find you the best rate at no extra cost to you.

Oh, and Sony Ma has penelties if you don't live in the house for at least 7 years. You have to pay back some of the 'saving' on a graduating scale depending on when you sell.

tvbride04 · February 2010

There are a ton of hoops to jump through with a SONYMA. We had one for our first house.

HockeyWife2be · February 2010

Ditto the pp. A regular loan (or FHA) usually takes about 30 days to close, a SONYMA loan averages 75-90.

It's a big PITA.

plentz · February 2010

SONYMA is an excellent source for a home mortgage. Its interest rates are usually lower than conventional mortgages--currently 4.75% for a 30-year fixed mortgage--and down payments can be as low as 3% of the purchase price. The extra paperwork involved in obtaining a SONYMA mortgage is relatively minimal and usual time period from application to closing is 74 days. And there is NO penalty for selling your home in less than nine years--SONYMA reimburses any homeowner who has to pay a Federal recapture tax, which is rare. Also, the cost of mortgage insurance through SONYMA is much cheaper than FHA mortgages. The key is to find a lender that knows how to process SONYMA loans. In the Rochester area, there are many excellent lenders. You can pick one that does a fair number of SONYMA loans and, more importantly, has a short application to commitment timeframe. The SONYMA website has a list of participating lenders in the Rochester area: http://www.nyhomes.org/index.aspx?page=275. If you are looking for more information about SONYMA mortgages, please call this toll-free number: 800-382-4663.

jess_hp · March 2010

Thanks for the input everyone. The loan officer I met with was not a fan of SONYMA either, and our debt to income ratio was too high anyway, so we are going with an FHA loan instead. Hopefully we will find something in time to get the tax credit.

Thoughts on SONYMA home loans?

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