MyCommunity Mortgages: which are sponsored by Fannie Mae and is designed to assist low and moderate income families, public service employees, and disabled people to realize their dream of owning an affordable home. This program allows for 100% financing and little to no money required into the transaction for those who qualify.
I can't stress enough how great this Fannie Mae sponsored program is. It allows certain borrowers to qualify for a home with no money down and less than perfect credit. It is a great alternative to some of the subprime loans that are now disappearing from the marketplace. The best feature of this loan program is that it offers a low interest rate that is fixed over 30 or 40 years, not just 2 - 3 years like the average subprime mortgage. Most subprime borrowers aren't getting in trouble because of their initial interest rate. Most of the trouble comes when these short-term ARMs reset and payments skyrocket by $300-$500 per month.
A sensible borrower can combine this loan with some of the techniques that I cover in my How To Afford a Home with Little Money blog and should be able to comfortably afford the home of their dreams.
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