Veterans SONYMA (VS) Home Loan

Also known as the Homes for Veterans Program through the State of New York Mortgage Agency (SONYMA), this program offers fixed-rate mortgages with interest rates 0.4% below the already low-interest rates charged on SONYMA mortgages with down payment assistance.

Program Benefits:

Exclusively for active service members, veterans, and their spouses or co-borrowers
U.S. Military veterans with an other than dishonorable discharge do not need to be first time homebuyers
Also applies to active or honorably discharged members of the National Guard and reservists
Interest rates 0.40% lower than standard SONYMA interest rates for loans with down payment assistance
Down Payment Assistance Loans are available with this program for up to $3,000 or 3% of the purchase price (not to exceed $15,000), whichever is higher
Minimum borrower cash contribution is only 1%; the remaining 2% can come from a gift or other acceptable source
No points

Program Eligibility:

You must be either a U.S. military veteran or active duty serviceperson and be able to provide the following documentation with your application:
- DD214 – Certificate of Release or Discharge from Active Duty or NGB Form 22 – Report of Separation and Record of Service
- Leave and Earning Statement (required for all active duty U.S. military personnel)
- Military ID Card (required for ALL active duty U.S. military personnel)
Military Veteran's Eligibility Affidavit (SONYMA Form 243) is required only if an eligible veteran or their spouse or co-borrower is not a first-time homebuyer

In addition, any active duty service members, honorably discharged National Guardsmen, or honorably discharged Reservists, who are first-time homebuyers may take advantage of the program benefits if they are:

A U.S. military personnel (including those currently serving in the reserves) stationed in New York State, regardless of discharge status)
An active or honorably discharged National Guardsman
An active or honorably discharged Reservist

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Explore additional features that can help make your home more affordable

HFLS Veterans Homeownership Loan

HFLS Veterans Homeownership Loan

HFLS Veterans Homeownership Loans are up to $30,000 or 2% of the home’s purchase price, whichever amount is lower. Loans of $10,000 or less require one guarantor; loans of more than $10,000 (up to the program’s maximum of $30,000) require two guarantors. Please see below for information about guarantors.

Repayments begin approximately one month after the loan is disbursed. Applicants may select their preference for repayments on the 5th or the 20th of each month in the application form. All repayments are made through electronic debits from the borrower’s checking account.

Loans are repaid in equal monthly installments over up to 60 months (five years). For a $30,000 loan, repayments will be $500/month; loans of less than $30,000 will have lower monthly repayments, with a minimum monthly repayment of $300.

PLEASE NOTE: HFLS lends to households, and a married couple is therefore considered one borrower. If an applicant is married or partnered, he or she must include the spouse or partner’s information in the application. If the loan is approved, the spouse or partner will sign the promissory note as a co-borrower. This is the case for married or partnered guarantors as well.

Learn more about the HFLS Veterans Homeownership Loan Program and see how to apply.

SONYMA Down Payment Assistance Loan (DPAL)

One of the biggest financial hurdles faced by potential homeowners is the down payment and closing costs. SONYMA’s Down Payment Assistance Loan (DPAL), which is available for all buyers using a SONYMA mortgage program, can provide the initial funding you need to purchase your first home.

If you are required to carry mortgage insurance, a DPAL can be used to cover all or a portion of your premium, which can reduce your monthly mortgage payment significantly.

Program Benefits:

0% interest rate
No monthly payments
Forgiven after 10 years
Minimum loan amount: $1,000
Maximum loan amount: 3% of the purchase price (up to $15,000) or $3,000, whichever is highest

Learn more about the SONYMA Down Payment Assistance Loan (DPAL)

SONYMA Repayable Second Lien Program (RSL)

Accruing enough assets to close on a new home is one of the largest barriers to homeownership. To address that need, SONYMA offers an interest-free, deferred payment second mortgage loan called Repayable Second Lien (RSL). This loan is designed to help low- and moderate- income New Yorkers achieve their homeownership dream. It is available with any SONYMA first lien.

RSL may be used to pay down payment and closing costs up to 5% of the net purchase price. This second lien may also be used to pay single premium mortgage insurance (MI) for transactions over 80% LTV. For more information, please see the RSL Term Sheet.

Interest rates for first-time mortgages with an RSL attached will be 0.40% higher than mortgages without. This higher interest rate does not apply to our Graduate to Homeownership, Homes for Veterans, or ENERGY STAR® programs.

Program Benefits:

0% interest rate
No monthly payments
Must be paid off
- upon sale of property; or
- if first mortgage is refinanced; or
- if the first mortgage is paid off
Minimum loan amount: $3,000
Maximum loan amount: 5% of the net purchase price

Learn more about the SONYMA Repayable Second Lien Program (RSL)