My Community For Our Community - Low To Moderate Income Lending

There are a lot of buzz in the market about 100% financing for first-time homebuyers. It seems that they get all the perks, right? Below-market interest rates (Tennessee Housing Development Agency loans), reduced mortgage insurance, the seller pays the maximum contributions, etc. However, if income eligible, you need not be the first time homebuyer to receive some of these benefits. You May be able to slip under the auspices of Fannie Mae's MyCommunityMortgage.

MyCommunityMortgage is Fannie Mae's affordable lending products intended for low and moderate income communities and borrowers. Its advantages include a lower minimum required mortgage insurance and no down payment required or the borrower contribution for a single family primary residences. In other words, 100% financing is allowed. In addition, it allows the seller to pay up to 3% of the purchase price / appraised value of the closing costs. And guess what? You do not have to buy houses. This product is also allowed for rate / term refinances, too!

What are the income limits? They are 100% HUD median income for the area in which the property is located. You can figure out your income limits visit the area or simply ask your lender. For example, in Knoxville, TN and surrounding areas, the income limit is $ 54,800.

How about your credit? No minimum credit score, but 620 is a good rule of thumb. However, if you get approval through automated underwriting system, there is a chance that you could dip a bit lower on the credit score. You May also qualify for a manual underwrite, where a real live human makes a decision on your file, you can not get automatic approval. To qualify for a manual underwrite, though, you can not have any history of bankruptcy, foreclosure, collections, judgments or delinquent house payments. Sometimes, a person has no credit score. In this case, you must prove to have positive non-traditional credit history - you pay your car insurance, utility, cable and phone bills on time

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the maximum loan amount for this product is $ 417,000. I'm not sure who can afford the home loan amount when they can only earn $ 54,800 a year. But if the house is only debt you have and the interest rate is low enough, I guess anything is possible.

So, if you think you'll be in shape, make sure to ask your mortgage lender about this product. It is a peach.