ANDREW M. CUOMO
Governor
RUTHANNE VISNAUSKAS
Commissioner/CEO
By E‐mail
May 5, 2017
Seller’s Guide Bulletin #1‐2017
RE: Graduate to Homeownership Program (GTH)
Dear Participating Lender:
As announced by Governor Cuomo in his State of the State address in January, the State of New York Mortgage
Agency (SONYMA) is launching a new product add-on called the Graduate to Homeownership Program (GTH). It’s
a $5 million pilot program providing homeownership incentives to encourage college graduates to put down roots
in upstate communities, bringing new energy and talent into their downtown centers, spurring their development
and increasing their economic vitality.
GTH will work in conjunction with the Downtown Revitalization Initiative to foster new regional magnets where
businesses may access New York’s diverse and talented workforce, setting the stage for the entrepreneurial energy
needed to continue revitalizing Upstate New York’s downtown areas. If this program is proven successful, SONYMA
is optimistic that this initial pilot program may be expanded to include other areas and/or regions.
All requirements of SONYMA’s Low Interest Program (LIRP), including the household income and purchase price
limits, will apply to GTH except as follows:
Eligible Borrowers & Properties
This program add-on is available for first time homebuyers who have graduated with an Associate's, Bachelor's,
Master's or Doctorate degree within 48 months, from the date of the application, from a program recognized by the
U.S. Department of Education, purchasing in one of the following communities identified for Downtown
Revitalization:
 The City of Jamestown in Western New York
 The City of Geneva in the Finger Lakes
 The City of Elmira in the Southern Tier
 The City of Oswego in Central New York
 The City of Oneonta in the Mohawk Valley
 The City of Plattsburgh in the North Country
 The City of Glens Falls in the Capital Region
 The City of Middletown in the Mid-Hudson
Exceptions to the first time homebuyer requirement apply to eligible military veterans and homebuyers purchasing
a home in a Federally-designated target area. Please refer to the attached term sheet for more details on this topic.
Interest Rate
The interest rate will be published weekly and will be the equivalent of the SONYMA Achieving the Dream rate
(SONYMA’s traditional rate reserved for lower household income borrowers).
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Down Payment Assistance Loan
SONYMA Down Payment Assistance Loans (DPAL) are available with no increase in the interest rate.
240 Day Lock for Short Sales
SONYMA is extending the lock in period from 120 days to 240 days for all properties reserved under the GTH that
are a short sale. The contract of sale or a letter from the servicer/investor will serve as confirmation that the loan is
a short sale.
Note: This 240 day lock period will be available to all SONYMA loan programs effective with this announcement.
Program Options
GTH borrowers will apply under the Low Interest Rate Program (LIRP) only. The program can be combined with the
RemodelNY (RNY) and Neighborhood Revitalization Program (NRP).
Note: NRP is available as an additional add-on only for properties located in the city of Middletown under the GTH.
Pre-Closing Homebuyer Education & Counseling Requirements
Face to face counseling* from a HUD-approved or HomeSmartNY homebuyer counseling agency is required for all
GTH borrowers. Landlord counseling is also required for any borrower purchasing a 2-4 family property. SONYMA
will provide up to a $500 credit to cover the cost for homebuyer counseling and education.
* SONYMA will accept on-line homebuyer education when no face-to-face counseling is available within 25 miles of the
borrowers’ residence.
Revised Forms and Training Modules
SONYMA is in the process of revising the following forms, which will be available soon for immediate use on our
website, Lender Online (LOL) and SONYMA Express®. These forms are being revised to include this program addon.
 SONYMA Pre‐Closing Application File Checklist Form 225
 SONYMA Loan Reservation Worksheet and Rate Certification Form 238
 SONYMA Loan Extension and Rate Re-Lock Request Form 235
 SONYMA Post‐Closing Loan File Checklist Form 223
 SONYMA Post‐Closing Cooperative Share Loan File Checklist Form 224
 Post‐Closing Loan File Checklist for SONYMA Express® Loans Form S1
 Post-Closing Cooperative Share Loan File Checklist for SONYMA Express® Loans Form S2
We are also in the process of updating the following training modules:
 General Overview Training Module
 Submission of Pre-Closing Application Files Training Module
 Submission of Post-Closing Loan Files Training Module
 Submission of SONYMA Express® Post-Closing Loan Files Training Module
Both the revised forms and the modules will be published on the SONYMA Lender website as soon as possible.
Loan Reservations
SONYMA will begin accepting loan reservations under GTH on Friday, May, 5, 2017.
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Instructions for SONYMA Express Users:
GTH will be handled as an add-on program. When running findings for this product add-on, select “Low Interest
Rate” as the program on the Product Selector screen and check the box entitled “Graduate to Homeownership”.
If the GTH is being combined with the NRP, when running findings check both the box entitled ”Graduate to
Homeownership” and “Neighborhood Revitalization”.
If the property is being sold as a short sale, select “Short Sale” from the dropdown menu in the “Construction
Status/Short Sale” field on the Property screen.
When running findings the “Requested Lock Period” field will default to 240 days.
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Instructions for Lender Online Users:
When reserving a loan under the GTH, select “Graduate to Homeownership” on the program menu.
If the GTH is being combined with RemodelNY, select “Graduate to Homeownership/RNY” on the program menu.
If being combined with NRP, select “Graduate to Homeownership/NRP” on the program menu.
If the property is being sold as a short sale, select “Short Sale” from the dropdown menu in the “New/Existing/
Rehab” field on the reservation screen.
Attached is a term sheet and FAQ sheet which provide further detail on the GTH. Unless specifically addressed in
this letter, or in the term sheet provided, all other standard SONYMA program requirements will apply.
We look forward to your participation in offering this new and important mortgage product. We value our business
relationships and look forward to continued success providing financing to first‐time homebuyers. If you have any
additional questions, please contact the undersigned at (518) 473‐0090 or [email protected], or your
SONYMA Business Development Officer.
Sincerely,
Sherri Eckles
Senior Vice President
Single Family Programs
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SUMMARY OF TERMS
GRADUATE TO HOMEOWNERSHIP PROGRAM
PURPOSE
Despite being home to some of the nation’s leading colleges, many Upstate communities struggle to retain recent graduates.
This $5 million pilot program will provide homeownership incentives to encourage graduates to put down roots in Upstate
communities, bringing new energy and talent into their downtown centers, spurring their development and increasing their
economic vitality. The Graduate to Homeownership Program will work in conjunction with the Downtown Revitalization
Initiative to foster new regional magnets where businesses may access New York’s diverse and talented workforce, setting the
stage for the entrepreneurial energy needed to continue revitalizing Upstate New York’s downtown areas. The initial pilot
program will be expanded in future years if proven successful.
The program will be made available to recent graduates through the State of New York Mortgage Agency. In the last six years,
SONYMA has provided $1.5 billion in mortgage financing, making homeownership possible for more than 9,000 New Yorkers!
SONYMA will offer subsidized low interest rate loans, down payment assistance and coordination with HomeSmartNY to provide
homebuyer education on campuses. These education efforts will accelerate recent graduates' readiness and likelihood of
successful, sustainable homeownership in a growing, vibrant community in New York as they embark on their futures.
MAIN FEATURES
 Equivalent of SONYMA Achieving the Dream rate (traditional rate reserved for lowest income SONYMA borrowers)
 SONYMA Down Payment Assistance Loans (DPAL) available with no increase in rate
 Available for first time homebuyers who have graduated with an associate's, bachelor's, master's or doctorate degree within
48 months of the application date from a program recognized by the U.S. Department of Education, purchasing in one of the
following communities identified for Downtown Revitalization:
Capital Region - Glens Falls
Central New York - Oswego
Finger Lakes - Geneva
Mid-Hudson - Middletown
Mohawk Valley - Oneonta
North Country - Plattsburgh
Southern Tier - Elmira
Western New York - Jamestown
PROGRAM TERMS
Interest Rate
Will be published weekly on SONYMA’s website.
Borrower Points
None required.
Rate Lock Period
120 days for existing properties; 240 days for homes under construction or short sales
Rev. 05/02/17
Page 1 of 5
PROGRAM TERMS (Continued)
Maximum Lender
Compensation and
2% of loan amount. Lenders will be paid an additional percentage for loans originated with any of
the following features or combination of both:


Allowable Fees
SONYMA Down Payment Assistance Loan (DPAL): + (.50%)
RemodelNY Renovation Escrow Option: + (.50%)
(As with traditional SONYMA financing, Lenders may charge up to $850 in ancillary fees or $900 for
those lenders using SONYMA Express)
Eligible Loan Purpose
Purchase Money Mortgages
Eligible Occupancy
Owner Occupied primary residences only
Eligible Terms
30-year terms only
Maximum LTV/CLTV by
Eligible Property Type

1-to 2-family homes, double wide manufactured homes, condominiums*
 97% $424,100
 95% $424,101 - $500,000
 90% $500,000 & above

Co-operatives* the (RemodelNY Escrow and NRP add-ons are not available for co-ops)
 95% $500,000
 90% $500,000 & above

3-to 4-family homes (RemodelNY Escrow Option not available)
 90% $500,000
 85% $500,001

No Maximum CLTV
* Condominiums and cooperatives must be approved by Genworth or SONYMA
Subordinate Financing

Income & Purchase Price
Limits
Click here for the income and purchase price limits for this program add-on.
Recapture Tax Liability
Yes, however, reimbursed by SONYMA.
SONYMA Down Payment
Assistance Loan (DPAL)

Assistance can be the higher of $3,000 or 3% of the home’s purchase price up to a maximum
of $15,000.

May be used to pay all or a one-time portion of a mortgage insurance premium at closing.

“Soft” second mortgage.
 10 year term
 Requires no monthly payment
 Must be in a second lien position
 Bears no interest
 Subject to possible recapture and forgiven 1/120 per month or more with documented
capital improvements
Rev. 05/02/17
Acceptable types:
 Government Agencies (including SONYMA DPAL – see below)
 Non Profit Agencies
 Other organizations or private individuals upon SONYMA approval
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BORROWER ELIGIBILITY
First-Time Homebuyer
Requirement
Yes. Prospective buyers must meet one of the following requirements:
 First-Time Homebuyer: No ownership interest in their primary residence within the past 3
years
 Other than dishonorably discharged US military veteran
 Non first-time homebuyers who are purchasing in an IRS designated targeted area within
the eligible Downtown Revitalization communities (must not own another property at the
time of closing)
Minimum Down Payment/
Borrower Contribution
Pre-Closing Homebuyer
Education & Counseling
Requirements
 Face to face counseling+ from a HUD-approved or HomeSmartNY homebuyer counseling
agency is required for all borrowers.
 Landlord counseling for any borrower purchasing a 2 -4 family property
 SONYMA will provide up to a $500 credit to cover the cost for homebuyer counseling and
education
+SONYMA will accept on-line homebuyer education when no face-to-face counseling is available within
25 miles of the borrowers’ residence.
MORTGAGE INSURANCE
Mortgage Insurance
MI is required for LTVs over 80%; Pool insurance required on all loans
Mortgage Insurance Coverage
Amounts
Click on the links below for our current MI Rates:
Monthly Borrower Paid MI (BPMI) Rates
SONYMA Funded Single Premium MI
Single Premium Borrower Paid MI (BPMI) Rates
SONYMA Monthly Borrower Paid MI (BPMI) Credit Union Rates
UNDERWRITING
Allowable AU
Recommendations
SONYMA Express® lenders must provide SE findings. All other lenders should provide DU or LP
findings.
Manual Underwriting
Permitted.
Maximum Qualifying Ratios
40%/45%
Minimum Credit Score
N/A
Rev. 05/02/17
Page 3 of 5
Employment History
The 2-year employment history requirement is waived for any applicant who is working in a field
that is consistent with the college degree earned.
Acceptable Sources for
Down Payment Funds (once
minimum borrower
contribution has been met, as
applicable)
 SONYMA DPAL
 Gift from family member, fiancée or domestic partner
 Grant or loan from a non-profit organization, municipality or employer
Non-Traditional Credit
Permitted with proper documentation
Reserves
Not required.
Interested Party Contributions
Up to 3% maximum contribution for 90.01% LTV or higher and up to 6% for LTV’s 90% or less.
PROGRAM STRUCTURE/MASTER SERVICER
Financing Structure
SONYMA Bonds
Master Servicer
M&T Bank (only applies to lenders who elect not to service SONYMA loans)
See SONYMA Master Servicer Transfer Requirements for Non‐Servicing Sellers
Loan Process

Loans must be registered and locked through SONYMA Express® or Lender Online, as applicable.

Lenders will complete a general underwrite and submit files to Genworth or SONYMA MIF (as
applicable) for MI/pool insurance underwriting, via upload to BlitzDocs, even if PMI is not
necessary

Lenders are authorized to close a loan when:
For SONYMA Express® lenders
1. Pool and PMI (if applicable) certificates have been issued;
2. Documentation to satisfy all conditions of the IRS Compliance Section of the Express
Findings Report has been received and accepted by the Lender;
3. The closing date precedes both the SONYMA expiration date and pool insurance
commitment expiration date; and
4. No other issues that could jeopardize SONYMA’s security in the property or may
disqualify the borrower have been brought to the Lender’s attention.
For Non-SONYMA Express® lenders
1. Pool and PMI (if applicable) certificates have been issued;
2. SONYMA has approved the pre-closing file for IRS compliance;
3. The closing date precedes both the SONYMA expiration date and pool insurance
commitment expiration date; and
4. No other issues that could jeopardize SONYMA’s security in the property or may
disqualify the borrower have been brought to the Lender’s attention.

Lender closes loan and, if applicable, immediately sends servicing package to M&T for
onboarding.

SONYMA will purchase a loan when:
For SONYMA Express® lenders
Lender uploads the required closed loan file to BlitzDocs for review and approval, and overnights
original collateral documents to SONYMA. To avoid late delivery penalties, SONYMA must receive
the uploaded file and required collateral documents within 20 days of closing.
For Non-SONYMA Express® lenders
Lender submits the required closed loan file to SONYMA for review and approval. To avoid late
delivery penalties, SONYMA must receive the loan file within 20 days of closing.
Rev. 05/02/17
Page 4 of 5
Eligible Add-On Programs
Required Application Forms

Loans will be serviced by either the lender or the SONYMA Master Servicer.

Remodel NY

Energy-Star

NRP

Recapture Notification & Mortgagors Affidavit (Form 211) (Required on all loans)

Interest Rate Option Form (Form D3) (Required on all loans)

DPAL Recapture Notification (Form D4) (Required on borrowers using DPAL) (For NRP loans,
SONYMA requires the Neighborhood Revitalization Fund And Down Payment Assistance Loan
Recapture Notification Form #N4)

Copy of an Associates, Bachelors, Masters or Doctorate degree within 48 months of the loan
application from a US Department of Education recognized program.
Note: SONYMA and its partners continue to discuss the above terms. While we do not expect major deviations from these terms,
they are subject to change.
Rev. 05/02/17
Page 5 of 5
Graduate to Homeownership Program Overview and Q&A
Program Overview
 The Graduate to Homeownership Program will foster new regional magnets where businesses may access
New York’s diverse and talented workforce, setting the stage for the entrepreneurial energy needed to
continue revitalizing Upstate New York’s downtown areas.
 The program will be tailored to students and recent graduates who will be first-time homebuyers, and will
include face-to-face*, on-campus financial and homebuyer education courses, along with down payment
assistance and a low-interest rate mortgage provided by the State of New York Mortgage Agency
(SONYMA).
 Supports local effort to stop the brain drain - New York City leads the nation with more than 71 percent of
students from colleges and universities remaining in the area after they graduate, but many Upstate
communities, especially those in the DRI areas, have struggled to retain graduates.
 Complements Finger Lakes Forward, the Governor’s successful approach to regional economic
development.
FAQs
Q: Do graduates have to be first-time homebuyers?
A: Yes, they must be first-time homebuyers with no ownership interest in a primary residence within the past 3
years. Exceptions to the first time homebuyer requirement apply to eligible military veterans and homebuyers
purchasing a home in a Federally-designated target area. Please refer to the attached term sheet for more details
on this topic.
Q: What type of degree is eligible?
A: Associate's, Bachelors, Masters or Doctorate degree obtained within the last 48 months from a program
recognized by the U.S. Department of Education.
Q: Do graduates need to have attended a college in New York State?
A: No, applicants only need to have graduated from any program recognized by the U.S. Department of Education.
Q: Do buyers have to live in a certain city?
A: Homebuyers may have lived anywhere in the United States but must purchase and occupy a home in one of
these Downtown Revitalization Initiative (DRI) Communities:
 The City of Jamestown in Western New York
 The City of Geneva in the Finger Lakes
 The City of Elmira in the Southern Tier
 The City of Oswego in Central New York
 The City of Oneonta in the Mohawk Valley
 The City of Plattsburgh in the North Country
 The City of Glens Falls in the Capital Region
 The City of Middletown in the Mid-Hudson
Q: Are there income eligibility limits and purchase price limits?
A: Yes, the program follows SONYMA’s standard income eligibility and purchase price limits which depend on the
county in which the home is located, the type of home purchased and the number of people living in the home.
More information on income and purchase price limits can be found on the SONYMA website.
Q: What makes this program unique?
A: The program includes an innovative consumer financial education component. SONYMA will provide $500 to
pay for homebuyer counseling and education for each Graduate to Homeownership loan. We are partnering
with a network of counselors, schools, and mortgage lenders to ensure participating borrowers have access to
professionals who will provide the knowledge they need to make informed financial decisions. This network
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will operate on campuses throughout the participating DRI communities and will help borrowers structure their
finances in a way that decreases the likelihood of default.
This program offers borrowers down payment and closing cost assistance amounting to the greater of $3,000
or 3% of the home purchase price, up to a maximum of $15,000, without an increase to the interest rate.
Buyers can also add the SONYMA RemodelNY feature if they wish to finance the cost of any necessary or
desired improvements. SONYMA has the capability to finance both the purchase price of the home and the cost
of the repairs up to 97% of the property’s value AFTER all the work is finished. Unlike federal and private
lending programs, there is no increase in interest rate for using this feature.
The program is also tied to the Governor’s broad economic development strategy designed to bring new
opportunities to Upstate New York’s growing, vibrant downtowns.
With resurging economies, attractive, affordable housing markets and lower costs of living, Upstate
communities are ideal for millennial homeownership.
Q: Why is homebuyer education* and counseling required?
A: Studies show that borrowers who receive homebuyer counseling are better equipped to make financial decisions,
demonstrate stronger long-term financial performance, and are 33% less likely to be delinquent or default on a
mortgage. The educational component will accelerate recent graduates’ readiness for and likelihood of successful,
sustainable homeownership.
Q: Why is the program only available in the DRI communities?
A: The Graduate to Homeowner Program complements Governor Cuomo’s existing efforts to revitalize
communities across New York, especially Upstate. The Downtown Revitalization Initiative is a $100 million
program to transform communities ripe for development into vibrant neighborhoods where the next
generation of New Yorkers will want to live and work.
Q: Will the program be expanding to other communities?
A: We hope to expand to the program to other Upstate communities in 2018.
Q: Some programs in other states that are geared towards recent graduates address student loan debt. Why
doesn’t your program do the same?
A: The Graduate to Homeownership program does not require that homebuyers carry student loan debt, while
most programs in other states do. With its low-interest rate loan and down payment assistance, the program
will help new graduates who might not otherwise be able to afford to become homeowners.
Q: How else is your program different from programs offered in other states?
A: The program is as much about encouraging homeownership as it is about retaining smart, talented students
who are graduating from Upstate colleges and universities. These new grads will help us continue to revitalize
our downtowns and drive economic development.
The Governor’s Downtown Revitalization Initiative (DRI) is providing communities with the resources and funds
to create downtowns where millennials want to live, work and raise families – and we want to help put them in
their first homes.
Q: How do graduates apply?
A: Potential homebuyers can contact one SONYMA’s many participating lenders to apply for the program. A list of
lenders is available on SONYMA’s website. http://www.nyshcr.org/Topics/Home/Buyers/ParticipatingLenders
*SONYMA will accept on-line homebuyer education when no face-to-face counseling is available within 25 miles of
the borrowers’ location.
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