My Community Mortgage Program
A Home Loan Program Designed For Low To Moderate Income Home Buyers
By Jan Morgavan
(March 5, 2007) - As a Loan Officer, I have access to many Home Loan programs when I search for the best home loan programs for my clients. One that I have a special interest in is the MyCommunityMortgage (MCM) home loan program. This program is sponsored by Fannie Mae.
MCM is a conventional community lending product. It offers low and moderate-income home buyers a way to purchase a home with flexible terms and many options favorable to their particular scenarios.
The Community HomeChoice option of the MCM Program offers borrowers with a disability or a borrower who has a family member that is disabled greater flexibility in the loan underwriting process.
To be eligible for the Community HomeChoice option, a borrower or a family member living with the borrower must be handicapped as defined under the Federal Fair Housing Act.
Another option available in the MCM Program is the Community Solutions option. This option expands borrower eligibility to the specific professions: teachers, educational institution employees, police officers, firefighters, and healthcare workers. Community Solutions offers to eligible borrowers higher loan to value ratios and gifted reserves.
Listed below are the highlights of the My Community Mortgage Program.
MyCommunityMortgage Highlights
- No minimum borrower contribution
- Up to 100% Loan To Value (LTV) on one unit purchases.
- Low mortgage insurance requirements
- Flexibility on credit histories, nontraditional credit accepted
- Income-source flexibilities, including boarder income from relatives or nonrelatives
- Up to 40 year terms
- Pre-purchase home buyer education preferred but not longer required on one unit MCM Loans
- Can be used to purchase 2, 3, or 4 unit properties for borrowers who want to living in one unit and rent out the other units.
- Community Home Choice and Community Solutions are options available under the MyCommunityMortgage Program
Community HomeChoice
- Community HomeChoice option is for borrowers with a disability or who have a family member with a disability
- Community HomeChoice offers borrowers who need greater underwriting flexibilities including non-occyupying co-borrowers
Community Solutions
- Community Solutions option for borrowers who are teachers, educational institution employees, police officers, firefighters, and health care professionals
- Community Solutions option offers eligible borrowers higher ratios and gifted reserves
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