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Fannie Mae's MyCommunityMortgageTM
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Fannie Mae's Housing and Community Development (HCD) division tackles the toughest housing problems in America. Through the development of mortgage products, services, investments, national partnerships, and local initiatives, HCD works to expand the dream of homeownership and affordable rental housing.
HCD efforts support Fannie Mae's American Dream Commitment, the pledge to invest $2 trillion by 2010 to tear down barriers, lower costs, and serve 18 million families who are being underserved or overcharged by mainstream housing finance. Specifically, the American Dream Commitment targets underserved groups such as low- and moderate-income buyers, minorities, central city and rural residents, and people with special housing needs who traditionally have not been well-served by the mortgage industry. Fanie Mae works with lender and housing partners, to support and promote flexible, innovative underwriting models and low down payment mortgages. Fannie Mae also provides tangible benefits to communities -- and ultimately to consumers -- through leadership, innovations, and investments in housing finance, community development, and neighborhood revitalization.
In the spring of 2000, Fannie Mae and affordable housing partners successfully achieved the Trillion Dollar Commitment, designed to invest $1 trillion to serve 10 million families by the year 2000 -- eight months ahead of the original schedule.
Through a suite of flexible mortgage options for low- and moderate-income borrowers purchasing one-to-four unit homes Fannie Mae offers MyCommunityMortgage. With better program options giving flexibility to lenders by allowing variances that borrowers need to qualify for loans, often unique to particular communities. These variances apply to basic loan features such as loan-to-value ratio, borrower contribution, housing expense-to-income ratio, and others. For example, the need for down payment assistance may be a critical borrower need in one part of the country, while the need for 2-to-4-family housing may be foremost in another part of the country.
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Community HomeChoiceTM
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Option designed for low- and moderate-income borrowers who have disabilities, or who have family members with disabilities living with them.
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Community Renovation 1- to 4-Family
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Designed to make the purchase and renovation of 1- to 4 -unit properties more affordable. In a single mortgage, borrowers can purchase a 2- to 4-unit property -- or a single-family property -- with a low down payment and finance renovations having a total cost of up to 50 percent of the "as completed" value of the property.
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Enhanced Community 2- to 4-Family
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Designed to make the purchase of 2- to 4-unit properties more affordable by addressing the two biggest barriers faced by first-time home buyers -- lack of cash reserves and money for down payment and closing costs.
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Below are some of the benefits of MyCommunityMortgageTM: |
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Borrower contribution of just $500 toward down payment and/or closing costs
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Remaining down payment can come from a wide range of sources, such as a gift from a family member; a gift, grant or loan from a nonprofit organization, municipality or employer; or the borrower's own funds
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Loan-to-value ratios permitted up to 100 percent for 1-unit properties
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Eligible for purchase of a single-family home or condo or a two-family home with 3 percent borrower contribution
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Extra flexibility on credit histories, including consideration of nontraditional credit histories
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Extra flexibility on income sources including consideration of boarder income even if boarders are not related to the borrower
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Cash reserves at closing not required in most cases
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Part-time and overtime income is considered
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Special Community Lending mortgage program options
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FannieNeighbors® |
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Nationwide, neighborhood-based mortgage option designed to increase homeownership and revitalization in areas designated as underserved by HUD, in low- to moderate-income or minority census tracts, or in central cities. The FannieNeighbors option adds underwriting flexibility to Fannie Mae's Community Home Buyer's Program mortgage product by removing the income limit if a property is located in one of these areas. Lenders and other housing professionals can use the Fannie Mae Property GeoCoder, a free, online application to determine whether a property qualifies for the FannieNeighbors option.
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