NEW YORK – Monday, June 9, 2008 – The State of New York Mortgage Agency (SONYMA) today announced that it is partnering with the NYS Division of Housing and Community Renewal (DHCR), the U.S. Department of Housing and Urban Development (HUD) and public housing authorities around the state to offer very low 2% fixed-rate mortgages to recipients of Section 8 vouchers to help them become first-time homebuyers.
The “SONYMA Section 8 Voucher Homeownership Mortgage Program” is the latest SONYMA initiative designed to encourage sustainable homeownership among low- and moderate-income households in New York State at a time when tightening credit has made it more difficult to obtain financing from conventional lenders.
The program was announced to coincide with National Homeownership Month in June.
Under the program, eligible voucher recipients who successfully complete homeowner counseling courses and receive a Section 8 homeownership voucher can use the assistance to pay their mortgage instead of their monthly rent. The program will also free up resources for local public housing authorities and local Section 8 administrators, enabling them to help more voucher recipients purchase homes.
“Our new voucher homeownership mortgage initiative will promote sustainable affordable homeownership, which is our agency’s mission,” said Priscilla Almodovar, SONYMA President and Chief Executive Officer. “It helps voucher recipients transition into homeownership. And it enables public housing authorities and non-profits to help more Section 8 recipients achieve the American dream of homeownership.”
Deborah VanAmerongen, Commissioner of the Division of Housing and Community Renewal (DHCR), said, “New York State is a national leader in helping families become homeowners through the Section 8 Housing Choice Voucher Homeownership Program. Nearly 700 mortgages have been secured by New York’s housing agencies since this program began, and the new product being offered by SONYMA will allow us to help even more residents of New York purchase a home of their own.”
Paula Blunt, HUD General Deputy Assistant Secretary for HUD’s Office of Public and Indian Housing, said, “HUD is proud to be part of this collaboration. HUD’s voucher homeownership programs have already helped nearly 12,000 families become homeowners. Because these first-time buyers get counseling on what it takes to be a homeowner, they will be safe and secure in their new homes. Last year, more than 96 percent of homeowners in trouble who completed a HUD-approved housing counseling program avoided foreclosure.”
Marianne Garvin, President of the Community Development Corporation of Long Island, said, “Our families are hard workers who contribute to the local economy. They have the financial skills to achieve healthy homeownership, but they need an appropriate mortgage to turn the dream into a reality. I applaud the state leaders for creating this innovative mortgage financing that will enable our families to purchase their first home on Long Island.”
DHCR’s Section 8 Housing Choice Voucher Program and other public housing authority programs provide Federal housing assistance to low-income renters and homeowners. Under the program, Federal vouchers pay all monthly housing costs that exceed 30% of recipients’ monthly household income. To be eligible, recipients’ household income must be less than 50% of the Area Median Income for their region.
Renters must participate in the Section 8 voucher program for at least 12 months, be working full time and meet income guidelines to be eligible for the homeownership program.
To take advantage of the SONYMA Section 8 Voucher Homeownership Mortgage Program, voucher recipients should contact the local administrator of their Section 8 program—either the local public housing authority or the not-for-profit that serves as the Section 8 local administrator. This agency will put renters in touch with a local homeowner counseling program, which will offer homeownership counseling courses and help determine whether renters are financially self-sufficient to buy a home. A list of DHCR’s local administrators is available at http://nysdhcr.gov/ohm/units/sec8/sec8admins.htm#nyc. HUD’s list of other local administrators in the state is available at http://www.hud.gov/offices/pih/pha/contacts/states/ny.cfm.
Eligible renters who successfully complete a counseling course and meet credit criteria will then be able to shop for a home, condo or co-op they can afford. To obtain a SONYMA mortgage, they should contact a SONYMA participating lender. A list of SONYMA participating lenders is available at ../home/index.asp?page=272.
The SONYMA Section 8 Voucher Homeownership Mortgage Program is patterned after a similar program announced in April with Habitat for Humanity of New York State, in which buyers of Habitat homes can obtain 2% mortgages to finance their purchases.
Participants will be able to finance up to 99% of their purchase with a SONYMA mortgage. They will also 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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The State of New York Mortgage Agency 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.
The Division of Housing and Community Renewal is one of America’s oldest affordable housing agencies. Originally created within New York’s Department of State in 1926, the Division of Housing administered the first Limited Dividend program and the first state-subsidized public housing program in the nation. DHCR is responsible for the supervision, maintenance and development of affordable low- and moderate-income housing in New York State.
The U.S. Department of Housing and Urban Development is the nation’s housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.
State of New York Mortgage Agency
www.nyhomes.org
SONYMA Contact: Philip Lentz
Director of Communications
212-688-4000 x679
plentz (at) nyhomes (dot) org
NYS Division of Housing and Community Renewal
www.dhcr.state.ny.us
DHCR Contact: James Plastiras
Director of Communications
518-486-3400
jplastiras (at) dhcr.state.ny (dot) us
U.S. Department of Housing and Urban Development
www.hud.gov
HUD contact: Adam Glantz
Public Affairs Officer
212-542-7158
adam.glantz (at) hud (dot) gov
