Fannie Mae My Community loans are different from other 95% financing mortgages in the regard that they have cheaper monthly mortgage insurance, are subject to income limitations and don’t require any of the borrower’s own funds for the down payment. Fannie Mae My Community loans also allow community seconds. (Community seconds are 2nd lien mortgages that may be funded by a municipality, state, county, state or local housing finance agency, nonprofit organization, or an employer. These loans can assist buyers with down payment and closing costs.) Lastly, this loan allows for extra flexibilities with options to serve teachers, police officers, firefighters, and health care workers, and people with disabilities or a family member with a disability.
All My Community Mortgages with down payments of less than 20 percent are subject additional underwriting guidelines from mortgage insurance companies so additional restrictions can apply.
- Fannie Mae Guideline Changes – Gifts, 97% Financing and Mortgage Insurance
- FHA vs. Fannie Flex 97 for Low Down Payment Buyers
- Monthly Private Mortgage Insurance – It Doesn’t Make Any Sense. . .