Many Ways to Finance your New Home: My Community Mortgage

Continuing on the theme of different kinds of financing, I had the opportunity last week to listen to a presentation from my favorite lender who wanted to introduce us to this mortgage program.  It can be a GREAT alternative to FHA for those who qualify.  With the FHA changes and PMI making monthly payments higher, this could be a mortgage to consider.

My Community Mortgage is a Conventional Loan, designed for average income borrowers.  It is restricted to a maximum income of the area median income - in my market that is around $65,000.  The program is better for people who have good credit - high 600's.  Some highlights:

• 3% minimum down payment
• Source of the the down payment and closing costs can be anything - gift, grant, or other assistance program.  (In other words, unlike some other loans, none of the down payment or closing costs needs to be your own seasoned money)
• Owner occupied only 
• 30 year fixed rates
• Must complete a Homebuyer Education class (can be done online)
• Reduced Mortgage Insurance Requirements

If you are considering FHA for your mortgage, talk to your lender about this program.  They should be able to provide you a side by side comparison of the two programs to see what the best fit is for you.

If you want to talk to MY favorite area lender, just contact me!

I found this fact sheet on the Fannie Mae website that you can look at for a guide.