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You Can Buy A Home, with No Money Down, for A Disabled Family Member, and Not Have to Live In It

A lot of people know about the MyCommunityMortgage program offered through Fannie Mae. Its one of the best ways to get 100% financing today.

However, what a lot of people don't know is that if you or a family member is disabled, with little income as a result, you may still be able to get a mortgage, with no money down, by getting the help from a family member who won't live in the house with you.

About 20% of our population is disabled. This is one of those programs that makes Fannie really shine.

Community HomeChoice is part of the MyCommunity Program and it is designed to meet the needs of low- to moderate-income borrowers with disabilities or those who have a family member with a disability.

It offers extra flexibilities for borrower income and qualifying ratios, and even allows a non-occupying co-borrower.

Some of the program highlights for HomeChoice in MyCommunity are:

There is no minimum borrower contribution
Much lower mortgage insurance requirements than other 100% programs.
100% financing on one unit properties
You can do a 40 year loan or an interest only to lower the payment
Its not that credit sensitive and you can use non-traditional credit to qualify.
The borrower can be a non-occupying co-borrower and still get owner-occupied rates and terms. This allows you to buy a home for a disabled relative. It also allows for higher debt to income ratios to allow for this.

The biggest challenge on this program is an eligible borrower's income "may not exceed 115 percent of the area median income (AMI) where the property is located."

This income limit may exceed 115 percent in high-cost areas like bigger cities. However, lenders don't consider the borrower's "non-income" sources of support against this.

The bottom line is, if you are interested in this great program, and think it may fit you or one of your clients, get with your preferred lender and make sure he is up on his Fannie Mae programs.

Posted by Aaron Gordon, Home Loan Consultant, Las Vegas, NV on 08/15/2007 01:28 AM

Comments (8)

mycommunity, community homechoice, disabled homeowners

8 Comments on You Can Buy A Home, with No Money Down, for A Disabled Family Member, and Not Have to Live In It

AUG

2007

Wow! I would have never thought that possible. Thanks for the information.

Hey Aaron.............I had NO IDEA............Thanks..........There are 2 people I can think of right now that could benefit from this.............Thanks a million.....Duane Hosek in the Black Hills of South Dakota

Aaron - wonderful information. Thank you so much for sharing. I work with buyers on occasion that this would help immensely.

This is very interesting. It could open opportunities for many people who may think they are shut out of the home buying market due to income limitations from disabiltiies. Thank you for this great information.

Linda--- You are welcome! Fannie does some great things.

Duane-- Glad to help! Hopefully you get them houses!!

Carol -- You are welcome. Its good to know.

Allison-- No question. One in five are disabled and they probably feel the dream of homeownership is gone. And its not true at all.

SEP

2007

Great post! I recently came up against something similiar to this. I researched HomeChoice and it is a great program for people with disabilities. Something that I found out during my research is that Fannie Mae will allow Non-occupying co-borrowers on all of their standard Fannie loans up to 95% LTV.