PURCHASE

Home Buyers Glossary.

Cash

Funds that can be verified as the borrower's own, the source of which can be: (a) monies from borrower's checking or savings account, or other similar time deposit account, which have been on deposit in the account for at least 2 months prior to loan application, (b) cash up to $1,000, (c) cash deposit towards property purchase, and (d) the market value of the lot owned by borrower, exclusive of any liens, on which the SONYMA financed home was or will be constructed, or the purchase price of the lot if it was purchased in the past 2 years, whichever is less. Other sources may be considered on a case-by-case basis.

Down payment

The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.

Closing costs

Expenses (over and above the price of the property) incurred by buyers and sellers in transferring ownership of a property. Closing costs normally include, but are not limited to, fees charged by lenders, attorney fees, taxes, insurance premiums (e.g. flood insurance, hazard insurance, PMI), escrow charges, title insurance costs and survey costs. Lenders or realtors can often provide estimates of closing costs to prospective home buyers.

Existing  Housing

A property that has been previously occupied as a residence.

First time home buyer

A person who (i) has not had any ownership interest in his/her primary residence at any time during the three years prior to the date of making an application for a SONYMA mortgage loan; and, (ii) at the time of making the loan application to SONYMA, does not own a vacation or investment home. This definition includes residences owned in the United States and abroad.

Housing expense

The monthly costs associated with a mortgage loan, specifically: Principal, Interest, Taxes, and Insurance (PITI). Monthly costs also include maintenance fees, where applicable (e.g. condominiums, cooperatives, Planned Unit Developments, or Homeowners Associations).

Mortgage Services

The mortgage company that services your SONYMA loan after closing. All mortgage payments and inquiries should be made directly to the mortgage servicer.