Hannon Announces "NewHomes For Veterans"

Senator Kemp Hannon (R-Garden City) announced the details of the "New Homes for Veterans Program" which will assist New York's military veterans achieve the dream of home ownership. "Those who have served our nation should be given every opportunity to succeed and own a home," said Senator Hannon.

Eligible veterans purchasing a home through the program will receive below-market mortgages with fixed interest rates as low as 4.875% to purchase their first home or a new home. These rates are 0.5% lower than those available through the State of New York Mortgage Agency's (SONYMA) standard below-market low interest rate mortgages, and are much lower than the conventional interest rates available through regular banking or national home loan guaranty programs for veterans. Eligible veterans, their spouses or co-borrowers do not have to be first-time homebuyers in order to qualify for this program, but will have to satisfy SONYMA's income and purchase price limits as well as other requirements.

In the first year of home ownership, the average veteran could save approximately $4,000 when compared to SONYMA's already below-market low interest rate mortgage.

Mortgages offered through the "Homes for Veterans Program" will not require payment of borrower points and will require a down payment of only 3%. Unlike other SONYMA programs, "Homes for Veterans" will require only 1% of the home purchase to come from the borrower's own funds, while the remaining 2% can come from a gift or other acceptable sources of financing.

Veterans eligible for the "Homes for Veterans Program" can also take advantage of other SONYMA products, including SONYMA's Closing Cost Assistance Loan (CCAL). CCAL permits borrowers to receive either $5,000 or 5% of their total loan amount - whichever is greater - to cover expenses incurred when closing a mortgage loan. CCAL requires no monthly repayment, is interest free, and is forgiven after 10 years.

"Homes for Veterans Program" mortgages will be available exclusively through M&T Bank throughout New York State. Veterans can call SONYMA toll free at 1-800-382-HOME (4663) to get contact information for M&T Bank representatives specializing in "Homes for Veterans." To qualify, veterans must provide proof of active duty and proof of release from duty under conditions other than dishonorable by submitting DD Form 214, Certificate of Release or Discharge from Active Duty. Additionally, veterans must satisfy SONYMA's income and home purchase price limits as well as other eligibility requirements. Maximum annual incomes for SONYMA programs range from $35,630 to $67,550 for Achieving the Dream Program and $63,100 to $135,100 for all other programs. The limits vary based on the program selected, the household size and the location of the prospective homes.

More information is available at www.nyhomes.org.