My CommunityMortgage (MCM): MCM is Fannie Mae’s affordable lending Product developed to serve low-and moderate-income communities and borrowers.
If you are a loan officer/broker, or a Realtorthat takes an active role in providing mortgage financing information to your prospective clients you really need to know about the recent enhancements that FannieMae has made to their MyCommunity Mortgage product. Every now and then a new product or enhancement comes along that makes a difference in providing affordable financing alternatives for those in pursuit of the American Dream. FannieMaes’ recent enhancement to their MyCommunityMortgage does exactly that ….in a big, big way! In fact, their enhancements’ to this product are so fantastic I really believe that this is the best thing to come along since sliced bread!
Buyers seeking 100% mortgage financing along with little or no money out of pocket for closing and settlement costs has become a “norm”in today’s marketplace. Until recently, many of these buyers had to resort to an alternative mortgage or even sub-prime mortgage program. Quite often the structuring of their financing is 2 loans (80/20) to avoid private mortgage insurance which has become rather costly. Frequently their rates for the first mortgage are in the high 7% range and higher and the second mortgage in the 11% range or higher. A blended rate greater than 9% is not uncommon. Even more terrifying in accepting this as “a means to justify the end” are the other loan features which exacerbate their financial position such as prepayment penalty, short-term adjustable rate mortgages and interest-only option.
For many years the mortgage industry has used credit scoring among other factors to evaluate the risk of doing business with a given borrower. The quality of terms that a borrower could obtain was driven by this risk assessment. Now buyers can afford the home of their dreams without mortgaging their future as less than perfect credit will not affect their payment amount or interest rate.
Bottom lineis that the MCM has put the “affordability” back into affordable financing. Unfortunately, the buyer still has to deal with the issue of median sales prices.
Below are the new enhancements to the MyCommunityMortgage……do your clients a big favor by recommending that they check it out.
New enhancements and features include: No down payment required, Homebuyer education not required, Terms up to 40 years, Fixed or Adjustable Rates Available, Reduced Mortgage Insurance, No first-time homebuyer requirement (Cannot own another home at closing), 2-1 buydowns permitted, Maximum mortgage to $417,000, Up to 6% sellers contribution allowed for closing costs and pre-paid items, Boarder income may be allowed, State and County Down Payment Assistance may be used , Non-Traditional credit may be used, Interest-only Option available.
With Automated Underwriting: No minimum credit score requirement, No cash reserves are required, effective May19, 2007 unlimited collections may remain open (previous guideline was to $5000), No set maximum debit ratios, Cash on-hand for closing may be acceptable, Flexible with sources of funds for additional funds into transaction.
Mortgage Loan officers/Brokers and Realtors this program will get you more deals closed while doing right by your clients. This mortgage product combined with state and county down payment assistance programs is making a lot of my clients very, very happy!
P.S. Several days ago I made a post just before ActiveRain went down with a hardware failure. I understand that comments may have been lost due to this failure. 
You are invited back to this post RE: Setting Expectations.
Copyright 2006, Ron Withers, All Rights Reserved
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Excellent information. This product is going to be very popular in Poinciana. Are there income limitations on this loan? This will be good opportunity top urchase ahome with no down and not get raked over the coals with the rate. I like it!