Veterans Homeownership Loans

One guarantor is required for loans of $10,000 or less, and two guarantors are required for loans of more than $10,000. All guarantors (and their spouses or partners) must complete and sign Guarantor Forms. 

Each guarantor is “jointly” and “severally” liable for the loan in the event a borrower is unable to pay for any reason.  This means that, while HFLS would expect each guarantor to share equally in the responsibility of repaying the loan, each is liable legally for the full amount, and any one guarantor could be called upon to repay the balance due.

Guarantors must meet the following criteria:

• US citizens or permanent residents currently living in New York, New Jersey, or Connecticut

• Have a checking account, good credit, and pre-tax household income of at least $50,000 a year

• Currently employed (HFLS prefers persons who have worked at least one year in their present position), or if retired, can demonstrate their ability to repay through pension/retirement income or assets.

Even if they meet the requirements above, the following people may not guarantee a loan: 

• You, your spouse/partner, or your dependents

• Persons who currently have an HFLS loan or are a guarantor on an HFLS loan

• Persons who are financially unable to repay the loan

The information and documents below are required for an HFLS Veterans Homeownership Loan:

From the borrower:

• HFLS Veterans Homeownership online Loan Application. You must obtain the online application link from a SONYMA Participating Lender.

• Official SONYMA Commitment Confirmation letter listing your home’s purchase price (you will receive this from the SONYMA Participating Lender).

• Your most recent income tax return.

• Your most recent checking account statement (all pages), which must include your name, bank name, checking account number, and routing number. If the routing number does not appear on the statement, the applicant may submit it separately in the application.

Clear, color copies of government-issued photo IDs that include signatures and serve as proof of address for the applicant and their spouse or partner, if relevant (e.g. a driver’s license). If the driver’s license does not include the applicant’s current address, HFLS may require other documentation as proof of residency.

From the guarantors:

• Online Guarantor Form submitted by the guarantor and including information for their spouse or partner, if relevant. The guarantor will receive an email including a unique link to an online Guarantor Form after the applicant submits their application.

• Copies of government-issued photo ID for the guarantors (and their spouses or partners, if relevant), e.g. a U.S. passport or passport card, green card, naturalization certificate, or birth certificate. 

Failure to submit these documents will delay the processing of your application.

After receiving your online loan application and guarantor forms, an HFLS Loan Officer will contact you to schedule a 15-minute loan interview (by phone). HFLS will only contact you after all applicant and guarantor (and respective spouse/partner’s) forms and documents are submitted.

During the loan interview, an HFLS Loan Officer will review your application and other required documents with you, determine whether any additional information is needed, explain the loan closing process, and answer any questions you have.

HFLS reviews and decides on loan applications daily and strive to complete the application process and close loans as swiftly as possible. If we have questions about your application or guarantor, it may take more time before HFLS will be able to make a loan decision.

HFLS, in its discretion, may decline to make a loan, make a loan in an amount less than that requested, or require different or additional guarantors.

If your loan is approved, you will receive an email with loan closing documents for you to complete and sign electronically. The loan closing paperwork includes:

• A Promissory Note, to be signed by the borrower, guarantor, and all spouses/partners

• An Authorization of Automatic Payments (ACH) form, so the loan funds can be transferred directly into your checking account and so HFLS can withdraw monthly loan repayments directly from your checking account.

Once HFLS receives the electronically signed documents above, we will disburse your loan funds directly into your checking account within three business days. (Please note that it may take a few extra days after the disbursement for the loan funds to appear in your checking account.)