The Fannie Mae My Community Mortgage is a Conventional loan for borrowers who have minimal down payments and whose income is low to moderate as determined by the Average Median Income in the geographical area of the home.
The underwriting guidelines for a My Community Mortgage are a bit more flexible than on a regular Conventional loan allowing for debt to income ratios over 45%, down payments as low as 3%, and credit scores as low as 620. Un-sourced cash down payments are also allowable, as are co-borrowers with limited or no credit, and the income of boarders is also allowable to qualify by ratio. All My Community Mortgages with a loan to value ratio above 80% require Private Mortgage insurance (PMI). The PMI however is at a discounted rate, about ½ the cost of the Mortgage Insurance Premium required for all FHA loans. Once the loan to value ratio reaches 80%, the PMI is removed. This loan product is good for purchasing or refinancing 1-4 family owner occupied homes.
Call us today to at 888-933-8639 to see if the My Community Mortgage is the one for you.