HOW To Get A 4 or 5% Interest Rate in 2024! (Not Assumable Mortgages)

In the pursuit of affordable homeownership, navigating the complexities of mortgage financing can often seem daunting. Recognizing this challenge, the State of New York Mortgage Agency (SONNYMA) has introduced the innovative Credit is Due Program, aimed at empowering aspiring homeowners and facilitating access to sustainable housing options. Let's delve into the details of this groundbreaking initiative and its potential impact on your homebuying journey.

KEY BENEFITS:

1. 2% Interest Rate Reduction:
   • The SONMYA Credit is Due rogram offers a 2% interest rate reduction from the applicable SONYMA interest rate. SONYMA interest rates change weekly; however, the rate for the SONMYA Achieving the Dream Program is 6.375% at the time of publication of this article. Therefore, if someone qualifies for the full 2% interest rate reduction, they can get an interest rate of 4.375% in 2024!! That different in rates can lead to tens of thousands of dollars of savings over the life of a mortgage and, perhaps more importantly, drastically reduces your monthly mortgage payment.
2. Enhanced Down Payment Assistance:
   • In addition to the rate reduction, buyers may qualify for up to $30,000 in down payment and/or closing cost assistance, which is provided in the form of a 0% interest, forgivable loan. Essentially, this assistance functions as a grant and can go also be applied to mortgage insurance premiums, which also helps lower your monthly payment.
3. Relaxed Underwriting Guidelines:
   • Lastly, the relaxed underwriting guidelines make it easier for applicants who have limited credit histories or other challenges regarding credit history to qualify for a mortgage. This is a true game changer!

ELIGIBILITY:
To qualify for the Credit is Due Program, applicants must meet certain eligibility criteria of a current SONYMA program (e.g., Achieving the Dream or Low Interest Rate Program), including income limits and property purchase price restrictions. By targeting assistance towards individuals who may face financial barriers to homeownership, the program aims to promote inclusivity and expand access to housing opportunities. Additionally, to participate in the program, you must be a first time home buyer as defined by SONYMA. In this instance, this means that you cannot have owned a home in the last three years. Even if you bought a home in 2000 and sold it in 2019 (and have not owned a home since then), you will be considered a first-time home buyer. For more details on the eligibility guidelines for this program, please follow this link: https://hcr.ny.gov/system/files/documents/2024/03/credit-is-due-termsheet-20240307.pdf 

EDUCATION & COUNSELING:
In addition to financial assistance, the program provides educational resources and counseling services to empower homebuyers with the knowledge and skills necessary to make informed decisions throughout the homebuying process. By offering guidance on topics such as budgeting, credit management, and mortgage options, the program equips participants with the tools they need to navigate the complexities of homeownership successfully.

BOTTOM LINE:

To learn more about this wonderful program and to get connected to lenders that participate in it, please call/text me at 917-254-2103. I am always happy to help.