The Home Buyer's Korner

Information presented should be used for educational purposes only.

April 1st, 2015

Guy looking up in color

GREATER FRESNO CALIFORNIA

The Home Buyer’s Korner

Google+ RE Community

Google+ Mortgage Lender Community

Google+ General Contractor Communities

FNMA’s Minimum Three Percent Down Payment Program

Three PercentFannie Mae’s My Community Mortgage Program was designed for first time home buyers who only have three percent of the sale price for a down payment, which can be gifted and you should have a minimum FICO score 660. Lower FICO scores may be allowable, but you’ll need to discuss lower scores with your lender and any additional lender overlays that might be included.  

The My Community Loan Program allows home buyers to qualify for a mortgage at conforming interest rates and lower PMI premiums, which could make it more attractive than other programs like FHA’s 3.5 percent down payment program. 

Unlike the FHA, the My Community Mortgage Programs requires at least one home buyer to attend an approved First Time Home Buyer Course. 

The program also has special features for Public Safety Workers and Teachers. The concept behind the program is that for a community to be strong, it needs certain fundamental resources and assets within its infrastructure. Those include experts who provide specialized essential services like health care workers, law enforcement officers, firefighters, and schoolteachers.

To create a vibrant, safe, and healthy town or city, you need to attract and retain people who play those key roles. So Fannie Mae wants to make it easier for those folks to buy a home. By doing so, Fannie Mae’s My Community Mortgage initiative helps to ensure the stability and well-being of the entire community.

Fannie Mae lenders can provide you with a full list of the eligibility criteria for various vocations, but the program basically includes teachers employed by state recognized schools, members of state and local law enforcement agencies and fire departments, EMS responders and members of the military.

While medical doctors are not eligible, many other health professionals are, including pharmacy technicians, pharmacists, nurses, and medical technologists. Loan applicants can earn up to 100 percent [115 percent if you have a disabled family member] of the median income for your area and have as high as a 45 percent debt-to-income ratio with less-than-stellar credit. However, for homes located in neighborhoods designated as “underserved,” there is no income limit.

Perks available include discounted interest rates, down payments as low as three percent and as much as six percent in seller credits that can be applied to closing costs and pre-paid taxes and insurance. You can choose between a fixed-rate and an adjustable-rate mortgage and some home buyers can even qualify for a 40-year fixed-rate amortization.

The program has many similarities to the governments FHA program. Fannie Mae allows for a flexible source of down payment and down payment assistance. It can be the home buyer’s cash on hand, but I strongly recommend you be able to document the source, gift from a relative or even from the employer is acceptable.

In addition to relaxed down payment requirements, the My Community Mortgage Program also allows the use of overtime & part-time income to qualify for the loan for the professionals listed earlier in this post.  While most loans programs require two years of these incomes, this program will consider your part-time income if you can document it for 12 consecutive months.

It’s also worth noting that the My Community Mortgage Program is eligible on Condominium, Townhomes and Manufactured Homes on a permanent foundation the meets Fannie Mae’s minimum property standards.

First-time home buyers wishing to purchase two to four unit properties require a down payment of five percent on a fixed-rate mortgage and 10 percent on an adjustable rate mortgage.  You’ll also need to occupy one of the units and need to prepare to have at least six months reserves equal to your monthly principle, interest, taxes and insurance payments to qualify.

The My Community Mortgage Program requires private mortgage insurance. Mortgage Guaranty Insurance Corporation or MGIC is a likely provider your lender will select, so I’ve provided their current pricing here.

Talk to your lender to find out more about this great program for first-time home buyers and see if you’re eligible. I’ve covered some of the bells and whistles I think make the program attractive and you can see more by clicking on the first link in the post, but the best way to know if it’s right for you is to talk with loan officer.

VISIT OUR GREATER FRESNO AREA

HOMES FOR SALE LISTINGS

Livingston Homes for Sale

FIND HOMES THROUGHOUT FRESNO CALIFORNIA

HUD FORECLOSED HOMES IN THE GREATER FRESNO CA AREA

USDA HOMES IN THE GREATER FRESNO CA AREA

FIND FORECLOSURES IN & AROUND FRESNO CA

FIND MORE FORECLOSURES IN & AROUND FRESNO CA

CALIFORNIA HOME OWNERSHIP TOOLS

Your Home Purchasing or Refinancing & Renovation Tools,

Home Improvements, Home Renovations,

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase.

Here are just a few of the home improvements

you might consider with any Home Renovation loan

Repair or replace a roof

Install, replace or repair gutters and downspouts

Replace, repair or upgrade your HVAC system

Repair or replace plumbing

Install, repair or replace electrical systems

Kitchen remodeling (including the purchase and installation of appliances)

Bathroom remodeling, Full interior painting, Total exterior painting

Repair or replace a septic system and/or well

Disability access (wheelchair ramp, elevator, widen doorways)

Build, repair or replace deck, patio or porch

Basement waterproofing and finishing

Abatement/Stabilization of lead-based paint hazards

Replace old windows, Room additions, Finish an attic

Add a second story to your home

Replace a termite damaged sill plate (a water-damaged sill plate also)

Possible landscaping items such as correction of grading & drainage problems,

tree removal, repair a driveway and sidewalks

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Mortgage Loan Officers, Real Estate Agents & General Contractors are ready to assist you

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision-making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”. In the center of the screen you will

have the option to “Create A Printable PDF of the Presentation”.

START YOUR PATH TO HOME OWNERSHIP TODAY

FNMA HomeStyle FNMA My Community Mortgage FHA One-Time Close Construction Portfolio or VA home loan Homes for Sale FNMA HomePath Properties HUD Homes USDA Homes Condominiums Co-Ops Townhomes Manufactured Homes Modular Homes Mobile Homes Log Homes Second Homes Investment Property 2-4 Family Custom Home Builders Custom Built Homes Leasehold Fee Adoline-Palm Historic District Estates Alluvial and West Bluff Estates Alluvial West Estates Armenian Town Estates Ashlan and Valentine Estates Ashlan & Fowler-Armstrong Estates Audubon Wedge Estates Avaya’s Circle Estates Bella Montagna Estates Belmont-Dennett-Bengston-Parkway Estates Belmont-Divisadero-Blackstone-Fresno Estates Belmont-Fwy180-First-Fwy41 Estates Belmont-Fwy180-Fresno-Diana Estates Belmont-H-Fwy180 Estates Belmont-Olive-Cedar-Ninth Estates Belmont-Olive-Chestnut-Winery Estates Belmont-Olive-Maple-Chestnut Estates Belmont-Tulare-First-Sixth Estates Belmont-Tulare-Maple-Cedar Estates Belmont-Tulare-Maple-Chestnut Estates Belmont-Tulare-Sixth-Cedar Estates Blackstone-Maroa-Shields-Clinton Estates Blackstone-Maroa-Shields-Cortland Estates Bluffs Estates Blythe Bound Estates Brawley Estates Brawley-Stanford-Calimyrna-Kadota Estates Browning Heights Estates Brunswick Avenue Estates Bullard Estates Grantland Estates Bullard Loop Estates Butler-California-Cedar-Maple Estates Butler-California-Maple-Chestnut Estates Butler-California-Orange-East Estates California-Jensen-Willow-Chestnut Estates Carriage of Lennar Estates Cedar-Chestnut-Shields-Dakota Estates Centex Amberpoint Estates Central Valley Estates Central Westside Fresno Estates Champlain Drive Estates Chestnut and Woodrow Estates Chinatown Estates Church-California-Golden State-Fwy 99 Estates Church- Florence- Chestnut & Maple Estates Church-Jensen-Maple-Cedar Estates Clay-Tyler Ave Estates Clinton-Mckinley-Blackstone Estates Clinton-Mckinley-Blackstone-Fresno Estates Clinton-Shields-Fresno-Hwy 41 Estates Clovis Estates Colby Park Estates Cornelia and Ashlan Estates Cornelia-Dante-Bullard Estates Corona Tierra Estates Country Club III Estates Country Mobile Park Estates Craycroft Village Estates Dakota and Brawley Estates Dakota-Palm-Shields-Fruit Estates Dakota-Pontiac-Fresno-Mariposa Estates Dakota-Shields-Fresno-Fwy 41 Estates Dakota-Shields-West-Marks Estates Del Mar Estates Downtown Estates DR Horton Estates East Lexington Estates East Madison Avenue Estates East San Jose Avenue Estates East Side Floradora Estates Eaton Elementary Neighbor Estates El Dorado Park Estates Ellendale Estates Emily Estates East E. Santa Ana Bulletin Estates European Grove-Figarden Estates Fancher Creek Estates Figarden Estates Fig & Brawley Estates Fig Loop Circle Estates Fig Village Estates First-Millbrook-Shields-Michigan Estates Floradora-Olive-Millbrook-Cedar Estates Fordham Estates Forkner Sequoia Estates Francer Creek Estates Freemont Estates Fresno Diamond Estates Fresno East Estates Fresno-First-Mckinley-Weldon Estates Fresno-Nees-Angus-El Paso Estates Fresno Square Estates Fresno Zoo Estates Friant and Copper Estates Garden View Estates Garland Ave Estates Gates Fig Garden Estates GBGB Estates Generation Sunnyside Estates Germantown Estates Gettysburg and Feland Area Estates Gettysburg-Parkway-Shaw-Hayes Estates Golden State-Ashlan-Gettysburg-99 Estates Granville Sunnyside Estates Greater Tower District Estates Helm-Peach-Olive-Pine Estates Herndon-Fresno Estates Historic Huntington Estates Holt Estates Home Lansing Way Park Estates Hoover High Estates Horseshoe Estates Hunter Place Estates Hwy 41 Estates Industrial East Airport Estates Inner Loop Estates Island Waterpark Barstow Estates Jackson Park Place Estates Jensen-Church-Elm-Cherry Estates Jensen-Mason-Cedar-Ninth Estates Katy-Cecelia-Mckinley-Floradora Estates KB Homes Olive Lane Estates La Buena Vida-Allicante Estates Leavenworth Estates Lennar Estates Lennar-Clinton-Cornelia Estates Liddell Estates Logan Park to Bullard Ave Estates Lowell Estates Malaga Estates Maple Estates Maple-Behymer Estates Maplecreek Estates Marks-Escalon Estates Maroa Parks Estates Mayfair Estates Mccaffrey Highway City Estates McKinley and Marks Estates McKinley Ave Estates Mckinley-Olive-Cedar-Maple Estates Mckinley-Olive-Fresno-Blackstone Estates Mckinley-Olive-Millbrook-Fwy 41 Estates Melody Park Estates Meridian Estates Milburn Bluff Estates Millbrook-Eleventh-Floradora-Canal Estates Millbrook-Ninth-Cedar-Fountain-Dakota-Sh Estates Minnewawa Belmont & Tulare Estates Minnewawa-Peach-Huntington-Kings Estates Montelena Estates Mural District Estates N Charles Estates Nees Park Place Estates Nelson Chester  chool Estates New Haven Estates North Avenue Industrial Triangle Estates North Bond Street Estates North Creek Estates North Side Estates Northside Church Estates NorthTower Estates Northwest Bullard Estates Old Fig Garden Estates Old Herndon Township Estates Old Sunnyside Estates Olive & Brawley Estates Olive-Floradora-Hughes-Pleasant Estates Olive-Fwy180-Fresno-Fwy41 Estates Olive-Mckinley-Fresno-Fwy 41  Estates Oxford Commons Estates Palm Lakes Estates Palm/Shaw Estates Palm & Shields Estates Palo Alto Estates Palo Alto Place Estates Park Ridge Estates Parkway-Channing-Durant Estates Peach-Willow Estates Pinedale Herndon Ingram Estates Plaza Homies Estates Polk Estates Ranch Estates River Bluffs Estates Riverpark Estates River’s Edge Estates Riverview Estates Riverview-Riverpark Estates Royal Coach Estates Rustic Oaks Estates Sageberry Estates Saginaw Way-Farrin Estates San Gabriel Ave Estates San Jose & Brawley Estates Selma Layne Park Estates SE of Clovis East Estates Shaw-Maroa Estates Shawstone Estates Shepherd and Willow Estates Shields-Clinton-West-Hughes Estates Sierra Estates Sierra West Herndon Estates Silver Springs Estates Southeast Magnolia Estates South West-West Park Estates St Agnes First & Herndon Estates St. Johns Historic District Estates Stonemark Hones Estates Sun Garden Acres Estates Sunnyside Estates Sunnyside Central Estates Sunnyside East Estates Sunnyside Estates Sunnyside Grove Estates Sunnyside Haven Estates Sunrise Meadows Estates Teilman and Gettysburg Estates Teilman Heights Estates The Bluffs Estates The Circles at Decatur Estates The Dominion Estates The Masters Collection Estates Tower District Estates Tower District Area Estates Trend Big Country Estates Tuscan Bluffs Estates Tyler East-West Estates United Community Estates University Portals Estates Ventura-Butler-First-Chance Estates Veteran’s Blvd East Estates Wathen Mansionettes Estates West-Hughes-Kearny-Canal Estates West of Selma Layne Park Estates Willow-Helm-Olive-Mckinley Estates Willow Perrin Estates Windsor North Vicinity Estates Winery-Willow-Olive-Mckinley Estates Woodrow Culdesacs Estates Woodside Estates Woodside Park Condominium Estates Woodward Estates Woodward Lake Estates Wrenwood Estates Butler Calwa Cecile Cincotta Eshel Goldleaf Hammond Malaga Mattie West Park

Join us at Real Estate Social

Comments are closed.