Chapter 16 State-Sponsored Home Loan Programs

Many state and local governments provide low and moderate mortgage loan programs, as well as other benefits, to qualified borrowers. Many of these programs train participating banks, mortgage companies, credit unions, and real estate professionals in the use of their particular programs, enabling them to match the right loan with the right borrower. Programs include financing, down payment assistance, closing cost assistance, and other programs for first- time homebuyers. Programs include financing, down payment assistance, closing cost assistance, and other programs for first- time homebuyers.

In New York, for example, The State of New York Mortgage Agency (SONYMA) has a Low Interest Rate Mortgage Program which provides qualified low and moderate income first-time homebuyers with low down payment mortgage financing on one-to-four unit dwellings, including condominiums and cooperative apartments, as well as manufactured homes permanently attached to real property. The State of New York Mortgage Agency (SONYMA) has a Low Interest Rate Mortgage Program which provides qualified low and moderate income first-time homebuyers with low down payment mortgage financing on one-to-four unit dwellings, including condominiums and cooperative apartments, as well as manufactured homes permanently attached to real property. These loans are at fixed interest rates, which are below prevailing conventional rates. The program is financed by SONYMA through the sale of tax-exempt bonds.