Credit Is Due: SONYMA’s New Rate & Access Update

What Is SONYMA’s “Credit Is Due” Program?

The Credit Is Due program is SONYMA’s effort to increase access to financing in historically underserved communities. It partners with Special Purpose Credit Programs (SPCP) that allow more flexible underwriting standards — like accepting non-traditional income sources, forgiving certain credit issues, and easing reserve requirements. Homes and Community Renewal+1

This helps qualified buyers who might have been blocked by conventional mortgage rules. The program can also be combined with SONYMA’s down payment assistance tools such as DPAL (Down Payment Assistance Loan) and the Repayable Second Lien. Homes and Community Renewal+3Homes and Community Renewal+3Homes and Community Renewal+3

The New Rate Landscape: 4.2% to 5.0%

Here’s how the current rates look under the Credit Is Due framework:

• Without assistance, the lowest rates available may be around 4.2% (depending on income and credit).

• Buyers with higher income who still qualify might see rates up to about 4.6% even without subsidies.

• With assistance (using the special credit enhancements or combining subsidy tools), you could get rates as low as 4.6%, with the highest rates under this program reaching around 5.0% depending on income factors and whether subsidies apply.

These ranges reflect how SONYMA aims to lower barriers while balancing risk. The exact rate will depend heavily on your credit profile, income level, and which assistance tools you use.

Who Qualifies?

To use Credit Is Due, you must work with a participating lender that has adopted the SPCP framework. Homes and Community Renewal+1

Eligibility often includes:

• Income limits set by the county

• Being a first-time homebuyer (or meeting equivalent criteria)

• Meeting home type requirements (single-family, co-ops, 1–4 units)

• Acceptable credit — though more flexible standards may allow applicants who faced past hardships

• A minimal borrower contribution (often 1%) for many property types Homes and Community Renewal+2Homes and Community Renewal+2

Because this program is structured to reduce racial and economic disparities in mortgage lending, the credit review process is more inclusive, permitting factors such as rental payment history, gifted equity, or community support income. Homes and Community Renewal+2Homes and Community Renewal+2

How It Compares to Traditional Programs

Under conventional mortgage routes, buyers might risk being locked into higher interest rates or denied because of rigid credit rules or limited income documentation. With Credit Is Due, the combination of relaxed underwriting, credit enhancements, and rate discounts can open doors for buyers who would otherwise struggle to qualify.

You still want good credit, steady income, and financial readiness, but this program gives more breathing room in how those are evaluated.

Real-World Example

Let’s say Maria is applying in Westchester County:

• She qualifies for a 4.2% rate under Credit Is Due without any subsidy

• A slightly higher-income but still eligible buyer might get 4.6%

• If Maria uses assistance (credit overlay or subsidy), she might get 4.6% or up to 5.0%, depending on her income bracket

Because her monthly payment is lower, she can aim for a slightly more expensive home without her budget breaking. That extra flexibility can mean affording a home in a neighborhood she desires more, upgraded features, and/or a more energy-efficient home.

Tips for Applicants to Max Out the Benefits

1. Work with a knowledgeable lender that understands SONYMA and SPCP programs and is approved to offer the loan.

2. Submit a full documentation package early — proof of income, bank statements, alternative income sources, rental history.

3. Ask about combining tools — use down payment assistance, gift equity, or other subsidy programs.

4. Keep your credit profile strong — minimize new hard inquiries, avoid late payments, and clear up credit errors.

5. Be ready for a longer underwriting process — because of the inclusive rules, more documentation may be needed.

Final Thoughts & Call to Action

If you’re looking to buy in New York and thought you wouldn’t qualify before, SONYMA’s Credit Is Due program might change that. With interest rate ranges from about 4.2% to 5.0% depending on income and assistance, the cost of financing becomes significantly more accessible.

To connect with me directly, contact me at 917-254-2103. For your FREE Home evaluation to learn the value of your home, your Homeowner Resource Guide, or your Home Buying/Down Payment Assistance Guide, use this link: https://bit.ly/45URvuV or text HomeswithJustin to 85377.