SONYMA is the state's homebuyer program — below-market fixed rates, low PMI, and down-payment assistance up to $30,000. Designed to help New Yorkers actually buy in New York. I'm a SONYMA-approved lender serving the Capital Region and NYC.
Four things SONYMA does that a standard loan can't — and why it's usually the right first move for a New Yorker buying their first home.
The rest of your down payment and closing costs can come from gift funds, grants, or SONYMA's own down-payment assistance loan.
Forgivable second-loan up to $30,000 (DPAL Plus) or $15,000 (DPAL) — used for down payment and closing costs.
SONYMA rates are set below the going conventional 30-year — a real, ongoing monthly savings, not a teaser.
1-, 2-, 3-, and 4-family homes all eligible. Multi-family opens the door to house-hacking your way in.
SONYMA calls it "first-time," but the definition is broader than most people think. You qualify if any of the following is true:
You've never had ownership interest in a primary residence anywhere in the U.S.
You haven't owned a primary residence in the last three years. Life happens. This counts.
Purchasing in a federally-designated target census tract? The three-year rule is waived entirely.
Also required: property must be your primary residence, income within the county limits below, and a homebuyer education course (SONYMA provides a free online one — takes an evening).
Same state agency, two flavors. Which one you use depends on your income and how much rate savings vs. flexibility you want. I'll pick the right door for you when we talk.
SONYMA's most subsidized program — the lowest fixed rate they offer. Tighter income limits, but if you fit, this is the best deal in New York State.
Still below-market, but with meaningfully higher income limits — roughly 25% higher than Achieving the Dream. The right choice when your income is above the ATD cap.
DPAL is a 0% interest, 10-year forgivable second loan layered on top of your SONYMA first mortgage. You don't make monthly payments on it. If you stay in the home for 10 years, it's fully forgiven — you owe nothing back.
Up to $15,000 or 3% of the purchase price, whichever is greater. Available on both Achieving the Dream and Low Interest Rate loans.
0% interest · 10-year term · forgiven if you stay 10 years.
Up to $30,000 or 10% of the purchase price, whichever is less. Available on Achieving the Dream. Same terms — 0% interest, forgivable over 10 years.
Layer DPAL Plus with the 1%-own-funds rule and you can buy with almost none of your own money at closing.
SONYMA income limits are set by county and household size. Below are the two programs' non-target limits for the counties I lend in most. Target-area limits are higher — I'll tell you if the address you're buying qualifies as a target census tract.
| County | 1–2 person household | 3+ person household |
|---|
| County | 1–2 person household | 3+ person household |
|---|
| Property | Capital Region — non-target | Capital Region — target | NYC (all target) |
|---|---|---|---|
| 1-family, new or existing | $566,350 | $692,210 | $1,597,410 |
| 2-family, existing | $725,140 | $886,280 | $2,045,320 |
| 3-family, existing | $876,490 | $1,071,270 | $2,472,220 |
| 4-family, existing | $1,089,340 | $1,331,410 | $3,072,530 |
RemodelNY is a purchase-side add-on that lets you finance the home and the repairs together, sized off the after-improved value. Same SONYMA rate as Achieving the Dream or Low Interest Rate — no rate bump for using RemodelNY.
$1,000. No maximum — as long as total loan stays within county purchase-price limits.
10% required. Bumped to 15% if the home is vacant, up to 20% for higher-scope projects.
The lower of after-improved value or (purchase price + repairs + soft costs). LTV works like a standard SONYMA loan.
No rate bump for RemodelNY — you get the same below-market ATD or LIR rate.
Layer DPAL (up to $15,000) with RemodelNY. Reduces cash to close.
SONYMA administers renovation escrow and draws with a required consultant. I coordinate it end-to-end.
Federal law prohibits SONYMA from refinancing an existing loan. If you already own your home and want renovation money, we look at FHA 203(k) or a conventional cash-out refinance. If you don't own the home yet and it needs work, that's when RemodelNY fits — rolled into your SONYMA purchase.
The rules that decide whether SONYMA works for you. Read them so nothing surprises you at closing. If any single line is a "wait, what?" — call me and I'll walk you through it.
DU or LPA Approve/Eligible required. Minimum 3 active tradelines with 12+ month history. Max DTI 45% AUS · 43% manual.
$0 IBR payments don't count as zero — SONYMA uses 1% of the balance as the qualifying payment. Documented IBR > $0 is fine. Excludable only if a third party has paid it for 12 months.
Not allowed. All borrowers on the note must live in the home.
Must occupy as primary residence within 60 days of closing. Post-close audits happen — SONYMA takes this seriously.
Every adult (18+) living in the home has their income counted against the county cap, even if they aren't on the loan. Qualifying (DTI) income is separate — only the borrowers on the note.
1% of purchase price from your own bank statements on 1-family homes; 3% on 2–4 family. DPAL and gifts don't count toward this — has to be your money.
Max 97% LTV on the first mortgage. Max 103% CLTV with DPAL / DPAL Plus stacked on top.
Full appraisal always required. No waivers, no exterior-only. Condos/co-ops must be on the SONYMA-approved project list.
Ineligible if seller has owned less than 90 days. From 91–180 days, if the price jump is ≥100%, a second independent appraisal is required.
| Loan-to-value | Standard MI coverage |
|---|---|
| 95.01% – 97.00% | 35% |
| 90.01% – 95.00% | 30% |
| 85.01% – 90.00% | 25% |
| 80.01% – 85.00% | 12% |
| 80.00% or less | No PMI |
SONYMA can't pay you cash back at closing — DPAL is sized to the exact gap left in your transaction after you apply your own funds and any outside grants. Here's how the math is run, and what DPAL is allowed to cover.
Underwriting starts with the maximum DPAL cap, then reduces it if any outside assistance or seller credit would otherwise create cash back to you at the closing table. Your out-of-pocket ends at your mandatory 1% (or 3%) own-funds contribution — no more, no less.
DPAL is designed to cover the actual cost of getting the loan done — every legitimate line item on the Closing Disclosure. What it can't do is replace your own money or pay off other debt.
Max seller concession: 3% of price if LTV > 90%, or 6% if LTV ≤ 90%. Whatever the seller pays reduces your remaining gap — and DPAL is sized to whatever's left. You still owe your 1% (or 3%) own funds regardless.
3% of purchase price from your own bank statements — not 1%. Gifts and DPAL don't count toward it.
Same 3% own-funds rule, plus a SONYMA-approved landlord education course before closing. NYS landlord-tenant law is no joke — the class is worth it anyway.
If you're using projected rent to help you qualify: appraiser must fill out Form 1007, only 75% of gross rent counts, and 6 months of PITIA reserves are mandatory (no AUS waivers).
County purchase-price limit is measured against the after-improved value (price + rehab + contingency). Don't blow past the cap on a big rehab.
10% minimum. 15% mandatory if any utilities (water, gas, electric) are off at the initial appraisal. Up to 20% for higher-scope projects.
NY has no statewide GC license — the contractor must hold the local municipal HIC license (NYC DCWP, Nassau Consumer Affairs, Westchester Consumer Protection, etc.), $1M+ liability insurance with NAF as additional insured, and NY worker's comp.
Electrical and plumbing work must be done by a licensed master in the local municipality — a Home Improvement license alone doesn't cover it.
Feasibility study up front, structured draw schedule during, and Form 1004D final inspection before renovation escrow closes.
Only rate/term (no cash-out) is available, and cash back is capped at the lesser of 2% of the loan or $2,000. RemodelNY refinances (existing SONYMA + rehab) are also available with the standard 10–20% contingency.
| Government ID | Driver's license (front & back) for every borrower |
| Credit consent | Verbal consent to pull tri-merge — no signed authorization needed |
| Bank statements | Last 2 months, consecutive, all pages, showing seasoned own funds |
| Homeowners insurance | Quote in hand before closing |
| SONYMA forms | Recapture Notification & Mortgagor's Affidavit (Form 211) — I prepare, you sign |
| Household income docs | W-2s, paystubs, tax returns, and 4506-C for every adult in the home (borrower or not) |
20 minutes on the phone. I confirm income, household, first-time status, and whether your target address qualifies for target-area limits.
SONYMA requires a free online course before closing. It's an evening. I'll send you the link — knock it out early.
I underwrite your file and reserve your SONYMA rate with New York State — locks in the below-market rate while you shop.
You shop with a real pre-approval in hand. DPAL is set up in escrow. Standard 30–45 day close from accepted offer.
Licensed across New York State — with deep roots in the Capital Region and select NYC neighborhoods.
Don't see your town? Reach out — I lend statewide. Or see every Capital Region town.