SONYMA offers homebuyers down payment assistance but only when using financing through SONYMA. This program is known as a Down Payment Assistance Loan (DPAL).
The down payment is a second mortgage which has no interest rate and no monthly payments and will be forgiven after 10 years as long as the borrower keeps the SONYMA financing in place. The owner must continue to owner occupy the home through out this time. The maximum of this forgivable loan is $3,000 or 3% of the home purchase price, up to a maximum of $15,000. The Down Payment Assistance Loan cannot exceed the actual down payment and/or closing costs with the actual mortgage to purchase the house.
Although they are assisting you the borrower must make a minimum cash contribution of 1% of the value of the property but 3% for cooperatives. So if you are purchasing a home for $300,000 you will need at least $3,000 to put down. If you do not have 6 months worth of mortgage payments in the bank a coop would most likely not approve you.
I hope this information helped. Please give me a call or email me to discuss. I would love to help you.
I would also like to set you up on ListingBook, the pro version which is a great tool putting you in the driver's seat when searching for a home. Let me know if you would like to use this free service.
Dawn Noak, LSA, RSSP