How are SONYMAs Household Income and Purchase Price Limits calculated?
Almost all of SONYMA’s program funds with which we purchase mortgage loans are derived from the issuance of bonds, the interest of which is exempt from Federal income tax. This feature permits SONYMA to offer low interest rate mortgage loan financing to New Yorkers. To maintain the tax-exempt status of our bonds, we are required to comply with certain Federal laws and regulations, which, among other things, limit the maximum purchase price of SONYMA financed homes and the maximum income of eligible borrowers to Federally mandated levels. Income limits are calculated using area median incomes that are typically published annually by the U.S. Department of Housing and Urban Development (HUD). HUD publishes the area median incomes by Metropolitan Statistical Area (MSA), or, in more rural areas, by county. Under the law, SONYMA is permitted to use the higher of the New York State median income or the area median income to establish its income limits. The incomes are then adjusted for famil
