Condo renters in New York could become some of the latest recipients of low-interest financing through the State of New York Mortgage Agency. A new program from the agency allows renters using the Housing and Urban Development’s rent assistance program, known as Section 8, to borrow money from the Agency and then pay the mortgage, using the Section 8 assistance, according to Westchester.com, a news site covering Westchester County, New York.

“The SONYMA Section 8 Voucher Homeownership Mortgage Program is the latest SONYMA initiative designed to encourage sustainable homeownership among low- and moderate-income households in New York State,” according to the site, “at a time when tightening credit has made it more difficult to obtain financing from conventional lenders.”

The site further reports that “under the program, eligible voucher recipients who successfully complete homeowner counseling courses and receive a Section 8 homeownership voucher can use the assistance to pay their mortgage instead of their monthly rent.”

Deborah VanAmerongen, Commissioner of the Division of Housing and Community Renewal, was quoted, saying, “Nearly 700 mortgages have been secured by New York’s housing agencies since this program began, and the new product being offered by SONYMA will allow us to help even more residents of New York purchase a home of their own.”

To qualify for the program, participants must have used Section 8 for at least a year and must meet work and income guidelines for the 2-percent mortgage program.

Published: July 16, 2008

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Mr. Carr has covered real estate since 1989. He is the author of Real Estate Investing Made Simple. Got a personal real estate issue? Post your questions and comments at Anthony’s blog: commonsenserealestate.blogspot.com.