February 27, 2006.
Following Senator Skelos’ request, the IRS issued new regulations increasing the maximum purchase price on Long Island for SONYMA mortgages to $429,610 (90% of Long Island’s median home value). Under federal law, SONYMA’s purchase price limit cannot exceed 90% of the region’s median home price. This figure rises to $525,090 for homes located in “target” areas and higher for multi-family homes. Moreover, Long Island’s household income limit was raised to $91,770 (from 88,850) for one and two family homes in non-target areas and $109,200 (from $106,620) in target areas. In the Ninth State Senate District, portions of Island Park and the City of Long Beach are designated as target areas.
Long Island families with a household income less than $64,240 are now eligible for even lower interest rates through SONYMA’s “Achieving the Dream” mortgage program. In addition, Long Island was separated from the New York City region. This will enable SONYMA’s maximum purchase price to more accurately reflect the tremendous growth in Long Island’s housing market.
Between 1995 and August 2005, SONYMA financed 2,085 mortgages in Nassau County (totaling $264 million) and 6,825 in Suffolk County (totaling $863 million). These sums represent nearly 27% of all SONYMA’s loans—or almost twice Long Island’s share of the state population.
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