The Mycommunity program allows homebuyers to qualify for a mortgage at conforming interest rates and lower pmi premiums. The program's automatic underwriting engine allows for credit scores down to 580. Manual underwriting requires at least 640 credit scores. However, banks may require higher credit scores than posted by Fannie Mae. The program also has special features for Public safety workers and teachers.
The program has many similarities to the governments FHA program, currently MyCommunityMortgage program requires only 3% down payment. FNMA is also flexible on the source of down payment. It can be the borrower's cash on hand, gift from a relative, or even from the employer.
MCM also provides additional advantages for nurses, paramedics, fire fighters, and police officers as well as anyone who works in an educational institution. Through manual underwriting, MCM allows for higher debt-to-income ratios, gifted reserves, and consideration of part-time and overtime income with 12-month history to qualify for a bigger loan amount.
The My Community Mortgage program is ideal for home buyers with limited funds for down payment and closing costs and those needing flexibilities on credit, income sources, or access to special options. Here are some of the program highlights:
- Up to 97% financing
- No prior credit history is required
- No minimum contribution from the buyer’s own funds
- Fixed or adjustable rate loans available with interest-only options
- Loan terms up to 40 years
- Reduced mortgage insurance requirements to help keep payments affordable
In addition to these program highlights, the My Community Mortgage program also allows the use of part-time income to qualify for the loan for the following professionals:
- teachers & educational institution employees
- police officers and firefighters
- health care workers
- persons with disabilities (or those living with a family member with a disability)
- people living in underserved areas throughout the country, including many hurricane-damaged areas in Louisiana, Mississippi, Alabama, and Texas
My Community Loan Programs - Loans under the My Community Initiative offer home buyers and home owners fewer eligibility restrictions, and several loan options. These programs are often great for first time homebuyers.
My Community programs offer much more flexible underwriting guidelines, especially in regards to credit score and down payment requirements. The My Community Loan Program offer up to 97% loan to value ratios, which means borrowers need as little as 3% down programs.
If you are in the Health Profession, Educational Profession, and Protect and Serve your Community. My Community has some special incentives for you. Fixed rates can be 30 year, 30 year interest only, and 40 year term as well.
My Community Mortgage programs are available with a variety of options which are designed to address several of the most common obstacles homeowners face when buying a home:
MyCommunity Addresses Common Obstacles to Home Ownership:
- MyCommunity mortgages have options to help minimize or alternatively document Cash for Down Payment and closing costs
- MyCommunity mortgages allow for more flexibility when qualifying for the minimum payment on the new home loan using your income
- MyCommunity mortgages allow borrowers to have lower minimum credit scores than most other home loan programs
To qualify for a MyCommunity mortgage, the borrowers' income may not exceed the program's income limit. However, for homes located in neighborhoods designated as "underserved," there is no income limit.
MyCommunity Mortgages are also available for refinance loans in which only the Rate and Term of the loan is changed with less than $2,500 cash out.
2-4 Unit properties are considered under the My Community Program with as little as 5% down. The property must be owner-occupied to qualify.
The My Community Loan Programs also allow for reduced PMI premiums in some cases as well. This reduces your monthly mortgage payment significantly if you qualify.