The state of New York and the mortgage industry have come together to create a new program called “Keep the Dream” administered by the State of New York Mortgage Agency, or SONYMA, to stop loan foreclosure.
The new loan program will allow at-risk homeowners to refinance their current adjustable-rate mortgages to standard 30- and 40-year fixed mortgages as a means to corral skyward-bound mortgage payments and save their homes.
The “Keep the Dream” refinance program will be available to homeowners who are earning up to $58,120 in lower-income areas of New York, up to $94,000 in New York City, and as much as $158,560 in very wealthy areas.
The income restrictions are based on a certain percentage above the median income levels, and even homeowners less than 60 days late on the mortgage will be eligible if they fall below the income limit.
The “Keep the Dream” program will launch on September 4th, and is expected to serve and save 500 to 700 homeowners.
Borrowers who are eligible for the program and receive benefits must also enroll in a homeowners education course as part of the agreement.