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MyCommunityMortgage
An Affordable, Flexible Mortgage for Underserved Markets
MyCommunityMortgage – Now better than ever!
MyCommunityMortgage Highlights
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No minimum borrower contribution (one-unit)
- • Low mortgage insurance coverage requirements: 20% for 100% LTV, 18% for 97% LTV
- • Up to 100 percent LTV ratio (one-unit)
- • Up to 40-year term and options for initial interest-only period
- • Eligible for 2-1 temporary interest rate buydown (one- or two-unit)
- • Eligible for Community Seconds® or standard subordinate financing
- • Qualifying Community Seconds can be treated as a gift rather than a subordinate lien (DU only)
- • Flexibility on credit histories, nontraditional credit accepted
- • Income-source flexibilities, including boarder income from relatives or nonrelatives
- • For borrowers at or below 100 percent of area median income,2 with higher limits in high-cost and rural areas and for the Community HomeChoiceTM option; income limits waived in FannieNeighbors® areas
- • Many parishes/counties in 2005 hurricane-damaged areas of Louisiana, Mississippi, Alabama, and Texas are now eligible for FannieNeighbors
- • Eligible one-unit properties include condos, co-ops
- • Available for 2-, 3-, or 4-unit properties for borrowers who want to live in one unit and rent out the others
These options offer even more flexibility:
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Community SolutionsTM option for teachers/educational institution employees, police officers, firefighters, health care workers (eligible for higher ratios and gifted reserves)
- • Community HomeChoice option for borrowers with a disability or who have a family member with a disability who may need greater underwriting flexibilities, including non-occupying co-borrowers
- • Available under mortgage revenue bond programs offered by Housing Finance Agencies
- • Additional mortgage insurance flexibility is available through Self-Help’s Community AdvantageTM Channel (Community Advantage is a trademark of Self-Help)
Target Audience for MyCommunityMortgage
MyCommunityMortgage is ideal for borrowers with limited funds for down payment and closing costs and those needing extra flexibilities on credit, income sources, or access to special options.
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For borrowers who: |
MyCommunityMortgage delivers: |
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Have limited savings and/or cash assets |
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No minimum contribution from the borrower’s own funds
- • Eligible for 2-1 temporary interest rate buydown
- • Up to 40-year term and options for initial interest-only period
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Interest-only options: 30- or 40-year FRM with 10-yr IO period; 35-yr FRM with 5-yr IO period; 5/1 ARM (2/2/5 caps) with 10-yr IO period
- • Flexibility on reserves
- • Cash on-hand is an acceptable source for down payment and closing costs
- • Standard Fannie Mae guidelines pertaining to flexible sources of funds for closing costs and any remaining down payment, if necessary (generally, a gift from a family member; or a grant or loan from a nonprofit organization, municipality, or employer)
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Do not have credit |
Alternative credit evaluation, including:
- • Nontraditional credit allowed, with only three lines of verified nontraditional credit required
- • Consideration of some income from a co-borrower without a credit history
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Have nontraditional income sources |
Sources that may qualify include:
- • Rental payments from boarders, including nonrelatives
- • Public benefits such as Social Security Disability Income
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