ALBANY - The New York State Mortgage Agency (SONYMA) is now providing the lowest interest rates ever offered for its two primary programs in the agency's 40-year history. SONYMA's core program, the Low Interest Rate Program is now being offered at a rate of 4 percent and it's Achieving the Dream Program, for low-income first-time homebuyers, is being offered at 3.5 percent.

Governor David Paterson said, "Energizing New York's housing market is critical to revitalizing the State's economy. The historically low interest rates SONYMA is now offering will encourage responsible homeownership and help promote the economic recovery. Encouraging SONYMA's strong homeownership program is part our efforts to integrate the State's major housing agencies and create more efficiencies in the state's housing programs."

SONYMA is able to offer these historic low rates because of its participation in the New Issue Bond Purchase (NIBP) Program, a program initiated by the Obama administration to encourage sustainable homeownership and stimulate the nation's economy.

The U.S. Treasury announced last week that it would allow participating state housing finance agencies like SONYMA to sell its bonds to Fannie Mae and Freddie Mac at lower interest rates than under the prior pricing structure. This enabled SONYMA to lower the interest rates on the mortgages it offers to potential New York State homeowners.

SONYMA offers several competitively priced mortgage products, designed primarily for first-time homebuyers, to enable low- and moderate-income New Yorkers to become homeowners. In addition to the low interest rates, SONYMA loans offer the following features:

* Down payment assistance of up to $10,000 is available;

* Availability of 40-year mortgages;

* Rate lock periods of 100 days (240 for new construction and rehabilitation properties);

* 97 percent financing for most property types and as little as a 1 percent borrower own funds towards the down payment;

* No upfront mortgage insurance premiums and no borrower-paid points;

* Does not charge higher interest rates or add-ons for: different property types; loan amounts over $417,000; properties located in declining markets; or borrowers with lower FICO scores;

* Flexible condominium and cooperative project requirements.

SONYMA encourages responsible and sustainable homeownership and is proud that its delinquency rate is about 2 percent, substantially lower than the national rate of 10.5 percent.