Statement on SONYMA Section 8 Voucher Homeownership Mortgage Program

New York, NY – August 29, 2008 – (RealEstateRama) — The State of New York Mortgage Agency has announced several changes in its Section 8 Voucher Homeownership Mortgage Program. This program gives Section 8 homeownership voucher recipients the opportunity to obtain a SONYMA mortgage and buy a home.

The program has been very successful since it began in June, with more mortgage reservations than projected. As a consequence, SONYMA has exceeded the amount of funds initially allocated to the program. In order to meet future demand and ensure that funds are available for those most in need, SONYMA recently announced the following changes:

• The interest rate for mortgages has been increased to 4%. The new rate will apply to both 30- and 40-year mortgage terms.
• Purchase price limits for homes purchased with Section 8 SONYMA mortgages have been reduced to 80% of the original limit set for the program. In addition, SONYMA is implementing appraised value limits.  Going forward, both the purchase price and the appraised value of the home must be within SONYMA’s new limits. Click here to see the revised limits.

All other terms of the Section 8 program remain in place. To take advantage of the program, current Section 8 recipients must 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.

Potential homebuyers are required to take homeownership counseling courses to determine whether they are financially self-sufficient to buy a home.

Participants are 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.