My Community Program

Real Estate Agent with Exit Premier Realty

What is the My Community Program?

The My Community Program is designed by Fannie Mae and this program is designed for moderate income home buyers who have limited funds for the down payment and closing costs.

Even when your credit scores are below 660, no money down is still possible.  It is well known that borrowers with middle scores in the low 600's have been approved.  Higher credit scores will compensate if you have high debt-to-income ratios.  Typically a 620 fico score is recommended and we have seen debt ratios of 64% get approved.  Higher fico scores will improve your approval odds greatly.   This is a full documentation program.  There are additional qualifying flexibility options for teachers, police, military personnel, firefighters, health care workers, and those borrowers with disabilities..  

There are income limits for this program.  Borrower's income must not exceed 100% of the medium income for the designated area.  Check the HUD income limit for your area, for example, the HUD income limit ( for My Community loan in Montgomery, Prince George's, Calvert, Charles, and Frederick County, Maryland is $94,500.

If you were to choose an FHA loan, you will be required to put 3% into the transaction.  With My Community there is no minimum requirement.  FHA loans have upfront Mortgage Insurance (MI), plus your monthly Mortgage Insurance..  With My Community, Lender Paid MI is an option.  This means that you can opt for a slightly higher interest rate so you will have no mortgage insurance.  If you choose the mortgage insurance option, My Community allows for a reduced MI of 20% coverage or a factor of .59%, and there is no upfront fee (fha has).  A $180,000 loan would cost $88.50/month, which is $54.50 less than the old premium calculation of $144.00/month.  The loan must get approved through our automated Fannie Mae engine first, to get this lower MI rate.

This program is very popular and is putting many first time home buyers into their otherwise unattainable homes. 
Highlights include:
- 100% financing up to $417,000 loan amount.  97% for 2 unit property, and up to 95% for 3 or 4 unit.
- Available for home purchase or refinance.  You do not have to be a first-time home buyer.
- Fixed and adjustable rate products available, including Interest-only and 40 year ammortizations.
- up to 6% contribution from the seller, which must be used towards the closing costs and prepaid items.

While searching more about My Community I came across one of our members posts about My Community and Recent Changes: these changes take affect as of 10/12/2007.



This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Maryland St Mary's County Lexington Park
St. Mary's County Real Estate Pros
credit score
first time home buyer
my community
no downpayment
medium credit score

Spam prevention
Show All Comments
Greg Wilson
1st Cornerstone Realty - Schaumburg, IL
I've seen some pretty good programs in the Illinois area.  Its always good to have information on these for clients.
Sep 23, 2007 02:31 AM #1
Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES
Thank you very much Donna for writing this post. I need to educate myself more on this My Community Program. I know Bank of America does it. But I don't know if any other banks out there that does them. Great post.
Sep 24, 2007 02:14 PM #2
Matthew Rosov
Amerisave Mortgage Corporation - Laurel, MD
Certified Mortgage Planning Specialist

Thanks for sharing, Donna. 

Lanre - the major banks have this program available to them.  Bank of America, Countrywide, Wells Fargo, etc.

You shouldn't have any problems finding one that fits your client's needs.

Sep 25, 2007 11:56 PM #3
Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES
Matthew- Thank you very much. But with Countrywide and Wells Fargo possibly folding,Who else do you know that will be still doing My Community Program.
Oct 04, 2007 11:53 AM #4
Kimberly Grant
Exit Leon Crawford Realty - Huntsville, AL
Real Estate Agent - Huntsville Alabama
This is a popular program right now in my area.  I have heard good feedback on those that were able to use this program to get into their first home.
Oct 04, 2007 01:50 PM #5
Lewis Poretz
Bank of England Mortgage - Annapolis, MD
Mortgage Loan Officer - Lending in 50 States

Donna -  my community is a fannie mae program - most investors that offer DU offer this program

 i have seen very low scores get approvals....   freddie also has a similar program -  home opportunities...

if you have more questions give me a buzz and i will be glad to answer them      

Oct 08, 2007 02:06 PM #6
Danita Allen
Haven Realty Centers - Andrews AFB, MD
This is a very good program that has worked for several with lower scores as well.
Jan 13, 2008 09:25 AM #7
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Donna Whitaker

Exit Premier Realty
Ask me a question
Spam prevention

Additional Information