SONYMA’s Credit is Due Program: Making NY Homeownership a Reality

The State of New York Mortgage Agency (SONYMA) furthered its commitment to creating homeownership opportunities for underserved communities by recently launching the Credit is Due program. 

Designed to address and combat housing inequalities, Credit is Due aims to increase access to financing for historically underserved communities. 

Through demonstrating an active commitment to addressing lending disparities, we are proud to offer SONYMA’s Credit is Due program as a designated approved lender. 

What is SONYMA’s Credit is Due Program?

Credit is Due is a mortgage program designed to challenge notions of “credit worthiness” and increase homeownership in historically underserved communities. 

By expanding criteria used to evaluate responsible financial management, Credit is Due aims to increase eligibility for families who rely on non-traditional savings and offer greater flexibility for potential borrowers who have overcome past financial hardships. 

Credit is Due Program Highlights

• New program for historically underserved communities.
• No minimum credit score required 
• Up to $30,000 in down payment/closing cost assistance.
• Forgiven in equal monthly installments over the first 10 years (120 months) of borrower occupancy. Balance subject to recapture.
• Discounted rates may be available

Additional Guidelines

• May be combined with other SONYMA programs including Achieve the Dream, Low Interest Rate, and Homes for Veterans. 
• No cash reserves required, except under certain circumstances such as when purchasing a 2-4 family home or when unable to demonstrate a history of on-time rental payments.
• Additional funding sources can be combined with other grants and subsidies.
• Only 1% borrower contribution is required for most property types.
• Eligible property types include 1-4 family homes, coops, condos, and manufactured homes located anywhere within New York State.
• Borrowers need to occupy the property as their primary residence; however, non-occupant co-borrowers are permitted.

Additional Support: Introducing Our Special Purpose Credit Program (SPCP)

We are committed to empowering borrowers of underserved communities on their path to homeownership. Recently, we determined that many first-time buyers, particularly those in low moderate income areas, are facing obstacles in providing sufficient assets to close right up to the closing date. 

In the spirit of promoting housing equality for all, we are offering a $500 closing costs credit for any borrower needing to meet an income-based criteria. This credit is available for any loan program we offer as a mortgage banker. 

• The credit is available to any borrower with income below 50% of the median income (AMI) limit for the subject property’s location. 
• The income used to determine the client’s eligibility will be their qualifying income based upon the underwriting standards of the loan program they have applied for (FNMA, Freddie Mac, FHA, USDA, VA).
• The credit is not limited to first time homebuyers.

Our Special Purpose Credit Program (SPCP) is in effect for applications taken on or after February 15, 2024 until December 31, 2024.