One of the biggest obstacles to owning a home is the amount of funds a borrower must have for downpayment and closing costs. To help applicants overcome this obstacle, SONYMA offers homebuyers down payment assistance in conjunction with SONYMA financing. Please read below for details about the Down Payment Assistance Loan (DPAL) offered by SONYMA.

DPAL) allows SONYMA borrowers to secure down payment assistance through a second mortgage that can be used in combination with any currently available SONYMA program. DPALs have no interest rate and no monthly payments and will be forgiven after ten (10) years as long as the borrower keeps the SONYMA financing in place, and continues to owner occupy his or her home.

PROGRAM FEATURES:

The SONYMA DPAL can now be used to pay all or a portion of a one-time mortgage insurance premium, if applicable, thus significantly reducing your monthly mortgage payment. Here are some features of the program.

• 0% interest rate
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• Requires no monthly payments and is forgiven after 10 years
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• Minimum loan is $1,000
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• Maximum loan is the higher of: $3,000; or 3% of the home purchase price (up to a maximum of $15,000).

The Down Payment Assistance Loan cannot exceed the actual down payment and/or closing costs associated with the mortgage loan transaction.

The interest rate for first mortgages associated with a DPAL will be .375% higher than the interest rate for loans without DPAL. The higher rate does not apply to the Graduate to Homeownership, Homes for Veterans or Energy Star® Programs.