Sony Ma

[wannabe29]

Hello, all. I wasn't sure where to post this so I put it here...the loan I'm dealing with is similar to this category. I am a first-time home-buyer applying for a SONY MA loan (State of New York Mortgage Assistance loan) in New York. For those who aren't familiar with it, it's a low-interest state-subsidized loan offered to buyers who fit certain financial criteria. Without going into details, my wife and I meet the criteria.

We are in contract on a home that needs a little TLC. Basically, the kitchen needs to be redone (It's outdated), one of the bathrooms is a mess (But it works) and the house smells like dog. And, of course, it could use some paint. All of this stuff is basically cosmetic.

Everything works in the house. The roof has good life to it, the heating system is about a year old, the electric works, plumbing works, all of the windows are present and the siding is complete. The outside of the house has some bushes that need to be trimmed. Other than that, it's a decent house.

My issue is this: We are getting the SONY MA loan through M&T Bank. The appraiser they got is listing the house in "Fair" condition. Our M&T rep has told us that this is not good. "Fair" usually means that there are boards on the windows, the roof leaks, the siding is incomplete...basically, there's something majorly wrong that would prevent one from living in the house. However, this does not appear to be the case. Like I said, everything is cosmetic in this house. In addition, after speaking with the SONY MA people directly, they said that the only criteria they have for the condition of the property is that it must be "livable"....whatever that means. Nowhere could I find any hard criteria for the property conditions required for this loan.

I guess the appraiser is communicating with the underwriter via e-mail while the appraisal is being written. Whatever he sent to the underwriter seemed to have focused on the dog smell and the state of the paint in the house. He may have even included a note about the hardwood floors (they need a little TLC but, they are perfectly functional and intact). I got this info from my realtor and the M&T rep. They've all been communicating about the property, apparently. My realtor even got a hold of the appraiser somehow and basically got the impression that he was put-off by the cosmetic issues with the house.

What I would like to know is, is this normal???? We're freaking out because we don't want to lose this house because of cosmetic issues that rubbed this guy the wrong way. We haven't gotten the full appraisal yet (hopefully that will come tomorrow) but, this just seems ridiculous to me. Is there any way around this or are we basically screwed if this guy doesn't smarten up? Our bank rep mentioned something about challenging the appraisal. Is this a pain the butt process or is that something that can easily be taken care of? Thanks for any input.

 

[Charlie]

Hello, all. I wasn't sure where to post this so I put it here...the loan I'm dealing with is similar to this category. I am a first-time home-buyer applying for a SONY MA loan (State of New York Mortgage Assistance loan) in New York. For those who aren't familiar with it, it's a low-interest state-subsidized loan offered to buyers who fit certain financial criteria. Without going into details, my wife and I meet the criteria.

We are in contract on a home that needs a little TLC. Basically, the kitchen needs to be redone (It's outdated), one of the bathrooms is a mess (But it works) and the house smells like dog. And, of course, it could use some paint. All of this stuff is basically cosmetic.

Everything works in the house. The roof has good life to it, the heating system is about a year old, the electric works, plumbing works, all of the windows are present and the siding is complete. The outside of the house has some bushes that need to be trimmed. Other than that, it's a decent house.

My issue is this: We are getting the SONY MA loan through M&T Bank. The appraiser they got is listing the house in "Fair" condition. Our M&T rep has told us that this is not good. "Fair" usually means that there are boards on the windows, the roof leaks, the siding is incomplete...basically, there's something majorly wrong that would prevent one from living in the house. However, this does not appear to be the case. Like I said, everything is cosmetic in this house. In addition, after speaking with the SONY MA people directly, they said that the only criteria they have for the condition of the property is that it must be "livable"....whatever that means. Nowhere could I find any hard criteria for the property conditions required for this loan.

I guess the appraiser is communicating with the underwriter via e-mail while the appraisal is being written. Whatever he sent to the underwriter seemed to have focused on the dog smell and the state of the paint in the house. He may have even included a note about the hardwood floors (they need a little TLC but, they are perfectly functional and intact). I got this info from my realtor and the M&T rep. They've all been communicating about the property, apparently. My realtor even got a hold of the appraiser somehow and basically got the impression that he was put-off by the cosmetic issues with the house.

What I would like to know is, is this normal???? We're freaking out because we don't want to lose this house because of cosmetic issues that rubbed this guy the wrong way. We haven't gotten the full appraisal yet (hopefully that will come tomorrow) but, this just seems ridiculous to me. Is there any way around this or are we basically screwed if this guy doesn't smarten up? Our bank rep mentioned something about challenging the appraisal. Is this a pain the butt process or is that something that can easily be taken care of? Thanks for any input.

I am in Virginia and not familiar with the program you are mentioning. There is a New York specific area of Appraisers Forum and there are plently of NY appraisers who post here regularly - so I am sure you will here from someone who is familiar with the program.

All the conversations that have you have heard about should not be taking place and that is unfortunate and unprofessional in my opinion. The appraiser should be assigned the order and then should go out and do his or her job and complete the report. The conversations appeared to have served no purpose other than to cause speculation and get you upset.

A fair condition rating seems reasonable to me. You stated that the kitchen needs to be redone, a bathroom is "a mess", the house smells like a dog, it needs paint, the hardwood floors need repairs, and that the landscaping needs work. You are providing a definition of "fair" in your post- where did you get that from? Your definition of fair (boarded up, leaking roof, holes in exterior, major repairs, etc...) sounds more like something I would consider to be in "poor" condition. If the program only requires a property to be in "livable" condition as the rep told you- and the appraiser does not describe any needed repairs that would make the property un-livable- I do not get why the "fair" condition description would cause any problems. Maybe they will not loan on anything described as below "average"? Just a guess.

As far as challenging the appraisal- you are really getting too far ahead. Different lenders and programs have various appraisal appeal systems. The appraisal has not even been completed yet. And what would you challenge- the condition rating? With all the things that you mentioned do you really feel that this property should be given a condition rating that is "average" or above?

Good luck with your loan.

 

[timd354]

Hello, all. I wasn't sure where to post this so I put it here...the loan I'm dealing with is similar to this category. I am a first-time home-buyer applying for a SONY MA loan (State of New York Mortgage Assistance loan) in New York. For those who aren't familiar with it, it's a low-interest state-subsidized loan offered to buyers who fit certain financial criteria. Without going into details, my wife and I meet the criteria.

I find it very disturbing that the government feels that it has the right to take money from one group of citizens through the power of taxation and use that money to subsidize the mortgage of other citizens. It is especially disturbing that the government thinks that it should be subsidizing interest rates for some people when market based interest rates are at near historical lows.

 

[wannabe29]

I find it very disturbing that the government feels that it has the right to take money from one group of citizens through the power of taxation and use that money to subsidize the mortgage of other citizens. It is especially disturbing that the government thinks that it should be subsidizing interest rates for some people when market based interest rates are at near historical lows.

Well, maybe you're not familiar with the NYS housing market. Even with the downward trend in housing prices across the country, NYS is still one of the most difficult places in which to afford a home. Without programs likes this, (subsidized by the state, btw) NY would see (and still does) a lot of people leave the state for more affordable areas. That's not good. Believe it or not, it actually hurts the state more when people leave than it does to offer programs like this. Sorry that you don't feel that the government should be helping people out. If I'm not mistaken, that's one of it's responsibilities. I find this far less offensive than giving banks money to save themselves, especially those who used all kinds of shady tactics to rake in more money off of people who don't have it.

 

[The Warrior Monk]

From my reading of the post, the rating doesn't seem unreasonable. "Fair" is less than "Average," and it doesn't seen like your house is in "Average" condition.

The issue to me seems like one on the bank's end. "Fair" typically implies liveable, whereas "Poor" does not. I think the solution is for the lender to speak to a SONYMA rep. Getting the appraisal and asking the appraiser to lie isn't going to solve the problem.

 

[The Warrior Monk]

FWIW, I considered SONYMA when I bought my property. We were just over the income limit at the time. We went to Suffolk County National Bank.

Sometimes a local bank is easier to deal with, rather than one whose headquarters are not local. They like to lend in the community which they are based and they know.

 

[The Warrior Monk]

I find it very disturbing that the government feels that it has the right to take money from one group of citizens through the power of taxation and use that money to subsidize the mortgage of other citizens. It is especially disturbing that the government thinks that it should be subsidizing interest rates for some people when market based interest rates are at near historical lows.

Welcome to NY!

 

[timd354]

Well, maybe you're not familiar with the NYS housing market. Even with the downward trend in housing prices across the country, NYS is still one of the most difficult places in which to afford a home. Without programs likes this, (subsidized by the state, btw) NY would see (and still does) a lot of people leave the state for more affordable areas. That's not good. Believe it or not, it actually hurts the state more when people leave than it does to offer programs like this. Sorry that you don't feel that the government should be helping people out. If I'm not mistaken, that's one of it's responsibilities. I find this far less offensive than giving banks money to save themselves, especially those who used all kinds of shady tactics to rake in more money off of people who don't have it.

I really could care less that NYS is a difficult place to afford a home, other people should not be forced to subsidize your mortgage. If you cannot afford to purchase a house in NYS, then you should either rent, find a better job or move. If housing prices are too high in NYS for most people then prices would eventually adjust downward if the market was left alone. Programs that artificially subsidize the market just artificially keep the market higher than it otherwise would be.

It should not be the responsibility of government to help people out by housing them. The job of government should be to protect our freedoms and to keep the peace, not to gurantee results or take money from one group of people and hand it to another group of people who did not earn it.

 

[timd354]

Welcome to NY!

Socialism is not limited to NY as there are similar programs around here too and in many states.

 

[Kevin Mc]

Subsidized housing programs have saved and help gentrify over 100K homes in NYC over the past 20 years. Neighborhoods in Brooklyn,Upper Manhattan and the Bronx that were crime ridden wastelands are now thriving as a result of the NYC Housing Partnership Program which was financed primarily by JP Morgan Chase and M&T Bank. Great programs when they were running full tilt. They cost the taxpayers of Maryland nothing and greatly increased the tax base of the City of New York.

To the original poster, relax. You are in good hands with M&T in that have been involved with these programs for years. They may very well lend on a home in "fair" condition if the costs to cure are not so debilitating to put the overall loan at risk. Your rep should be able to help you through the process. Good luck.