NYS SONYMA Down Payment Assistant Program Requirements

[Nick Louie]

BiggerPocketers, 

My name is Nick. I'm moving back to Manhattan from abroad in about a week. I'm looking to house-hack via FHA (3.5%) immediately. Ideally, I'm looking to land a multi-family in Brooklyn with 4 units + an additional dwelling unit, like a basement.

I did some research on loans, and I noticed some providers in NYS offer a product called "SONYMA FHA PLUS," which is a combination of an FHA loan and SONYMA's down payment assistant program ("DPAP"). The DPAP grants qualified first time home buyers up to $15,000 in down payment and closing costs. This is a grant, so the buyer wouldn't have to repay the $15,000, with some exceptions. After researching, I do not believe the DPAP has income limits (Please correct me if I'm wrong). 

My question is: has anybody used the DPAP before? I'd love to hear the community's thoughts on the DPAP. It seems attractive. 

I do know that: (1) the applicant must reside in the residence for 10 years; and (2) the applicant cannot pay off the mortgage within 10 years as well. Besides these requirements, it seems the DPAP is a great program for first-time buyers in NYS. 

Any feedback would be great! 

[Caroline Gerardo]

There are income limits and loan limits and sale price limits which depend on which county in New York State. Minimum FICO middle is 600 ::: but that pushes the fixed rate way up. If your score is 740 today you can get a rate that parallels a traditional FHA loan. You will struggle finding anything in the price range in NYC area because of the loan limits. Sellers are not going to smile at your offer as the property has to be in good to great health and safety codes, no fixers. Sellers have so many cash offers to pick from you better have the most savvy, loved, negotiator, respected Realtor in the city where you are making an offer as your agent. Who you deal with will matter. IF you plan to use your buddy who is out of county expect to be making offers on 30 properties until you give in and recall what I said here. With today's rates so low, holding for ten years is a nice plan, but you have to maintain owner occupancy to one unit. No unit can be under 500 square feet so the basement idea would have to be something you fix up with your own cash after closing. No more than 5 acres. There are many properties for sale today upstate that meet the program. I suggest you take a free approved homeowner education class as it is required and will help you with the ins and outs. some links to read:

https://hcr.ny.gov/system/files/documents/2021/06/atdlimits6.11.22.pdf

https://hcr.ny.gov/system/files/documents/2021/06/atdlimits6.11.22.pdf

There are 4 different programs. The FHA one you ask about is limited to the county max dollar here ::

$548,250 – 1 unit Family • $702,000 – 2 Family • $848,500 – 3 Family • $1,054,500 – 4 Family

Wishing you happy hunting

C G