DEAN GRAZIOSI: DEAN GRAZIOSI REAL ESTATE

In New York State, homebuyers and realtors are applauding Governor Patterson’s approval of the State of New York Mortgage Agency (SONYMA) plan to facilitate the use of the homebuyer tax credit as a down payment for the purchase of new and existing housing.  New legislation has expanded the tax credit to buyers who once owned a home as well as to first time homebuyers.  New York is already experiencing an upturn in housing sales.

 

Under the SONYMA Tax Credit Advance Loans (TCAL), funds are provided to eligible homebuyers and can be used towards either the purchase price or toward the home’s closing costs.  SONYMA structures the advance as a second mortgage.  Funds will be available as of January 1, 2010.

 

The maximum advance is equal to 10% of the purchase price but not to exceed $8,000 for first time homebuyers or $6,500 for non-first time homebuyers and eligible military veterans.  Recipients must be purchasing in state approved SONYMA Targeted Areas.

 

Interest on the advances is deferred until July 1, 2011 at which point SONYMA will charge interest at a rate of 1% interest above the current mortgage rate.  If the loan is not paid in full, payments will commence on August 1, 2011.

 

To qualify, contracts must be entered into prior to May 1, 2010 and the transactions must close prior to Jun 30, 2010.  SONYMA hopes the program will fire up sales in distressed housing markets.

 

This program is an expanded version of SONYMA’s Down Payment Assistance Loan (DPAL).  The new bill includes previously omitted previous homeowners and military personnel.  Again, purchases must be in the agency’s Target Areas.  The minimum TCAL amount is $1,000. 

 

Eligible purchases must be the owner’s primary residence.  If the advance is not repaid, the loan becomes a second mortgage payable over ten years.

 

This entry was posted on Monday, May 17th, 2010 at 2:04 pm and is filed under Tax Credit. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.