MyCommunity Mortgage: A Subprime Alternative

By
Mortgage and Lending with The Manor Enterprises


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.

Build Wealth Through Real Estate

www.HouseWealthy.com

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Rainer
61,519
n d
Naoma Doriguzzi - Virginia Beach, VA
I agree!  My community is the way to go now!  Bye Bye subprime! 
Apr 11, 2007 03:09 PM #4
Rainer
4,480
Ian Fregin
UCM - Virginia Beach, VA

I closed 5 of these in February and not only are they great for the client, they are a breeze to close! 6% seller concessions and a minium buyer contribution of $500??? I love it, my clients love it and my Realtors think I am some kind of hero :)

Have you checked out all the "extras" with my community? The fannie neighbors eligible program is really cool too, and great for people in urban areas where things vary drastically from street to street.

Apr 15, 2007 01:01 PM #5
Anonymous
RoseAleta

Can someone please tell me this:  I am a public librarian can I qualify for a Community Loan. I have a pretty good salary, my credit score is 730-775 and my debt is pretty low.

Thank you for any advice, assistance, and cautions.  RoseAleta 

Apr 24, 2007 08:52 AM #6
Rainer
9,198
Victor Emeli
The Manor Enterprises - Washington, DC
www.HouseWealthy.com

Rose,

Depending on the location of the property that you are considering, you should be able to qualify for the MyCommunity mortgage.  They compare your income with the median income of the area that you are considering.  Also the property has to be your primary residence.  You can contact directly for more information if you like.

Victor

Apr 24, 2007 09:20 AM #7
Rainmaker
127,037
Tchaka Owen
Galleria International Realty - Hollywood, FL

MyCommunity is excellent!  It's actually credit-driven as opposed to credit score driven so many who would otherwise be subprime are able to get on board.  Good post, Victor!

- Tchaka 

Apr 24, 2007 11:07 AM #8
Rainer
4,480
Ian Fregin
UCM - Virginia Beach, VA
Rose - It also depends on the neighborhood, or census tract, you are looking at houses in. If the property you are buying is in a Fannie Neighbors Eligible community then your lender does not have to consider your income compared with the median income for the area/county. I don't think your occupation should figure into anything...that is more for police, teachers, firefighters/rescue squad personnel.
Apr 25, 2007 02:07 AM #9
Rainer
7,260
Greg Herson
Mal & Seitz Real Estate - Portland, OR
Thanks for sharing Victor.  Sounds like a great program.
Apr 25, 2007 12:33 PM #10
Rainer
53,146
Ron Withers ----Retired Mortgage Professional
Kissimmee, FL

Victor,

I totally concur with you on FannieMae's MCM. I did a post a  while back on MCM....the best thing since sliced bread.

Apr 26, 2007 12:09 AM #11
Anonymous
Jackie M.
Is the Fannie Mae "My Community Mortgage" the same thing as the Fannie Mae "Expanded Criteria Program" offered through ContryWide Mortgage?
May 08, 2007 01:37 PM #12
Rainmaker
110,899
Lewis Poretz
Bank of England Mortgage - Annapolis, MD
Mortgage Loan Officer - Lending in 50 States

Also remember ----   you can do 30 year interest only at 100%   and it has reduced MI................

great program for first time home buyers and clients with dings on their credit. Then again - FHA is another sub prime alternative as well.And i just got a real tough one,although it was rate/term, with current and other recent 30 day lates approved streamline accept when DU gave me a refer. Fannie, Freddie and FHA are picking up the slack. Those of us that are left standing are going to have a very busy 2nd halk of 2007.....   in my opinion

Lewis Poretz

SERVING A COMMUNITY

means being a part of it  
May 08, 2007 05:37 PM #13
Rainer
4,493
Rahil Pirani
Pirani Marketing Group - Rockford, IL

This is a great topic!  MyCommunity is one of the great programs outside of SubPrime.  I'm actually teaching a class on MyCommunity to a group of realtors.  Does anyone have any flyers, stats, guidelines, that I can pass out to the realtors?  

Many people don't even know this exisits and feel they can't qualify for a loan by going to their local retail bank!  We as Mortgage Professionals need to take this opportunity and show clients that there are options for good people!

May 09, 2007 10:52 AM #14
Rainer
75,626
Ann Guy
NA - Allentown, PA
I am strating to use the fannie products more now.
May 10, 2007 10:36 AM #15
Anonymous
Anonymous

Rahil-

 

My preferred method of product training is def with Case Studies.  Take the last 3 MyCommunity loans you wrote and do a short summary thta lists their situation/Credit Score/DTI etc etcc and any challenges that you had on the loan.  No better social proof than closed loans!

 Efanniemae.com has a page for MyCommunity that outlines the program/gives the prereqs for SFR and Multi's- 

 Good luck!

 

 

May 10, 2007 10:45 AM #16
Rainmaker
770,797
Lanre-"THE REAL ESTATE FARMER" Folayan
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.

Thanks for sharing Victor. That sounds like a great program. I am going to recommend this one to all of my prospects that I am working with.

Jun 18, 2007 10:40 AM #17
Rainer
39,748
Shane Sarae
Honolulu, HI
Thank you very much for sharing, never done one yet, but it looks like something I need to learn about!
Jun 28, 2007 05:36 PM #18
Rainer
7,400
Brent Sute
Hometown Mortgage - Tuscaloosa, AL
LWC

Great product - very similar to FHA, but you can go 100% without DPA.  Also, the REDUCED PMI rates are very attractive - as low as .59% for 100% or .48% for 97% LTV plus a Community Second Mortgage.  If the client is an "expanded approval" EA1 - the rate is the same, but the PMI is a higher. 

Jun 28, 2007 05:51 PM #19
Rainmaker
213,147
Shawn Gerhardson
Waterstone Mortgage NMLS#186434 - Cambridge, MN
Top Rated Mortgage Professional
My community is still a good option for borrowers but with the recent hit to the rate I would like at Home Possible as another alternative.
Jul 02, 2007 08:27 AM #20
Rainmaker
290,901
Kate Bourland
Marketing with Kate - Redding, CA
Onlilne Marketing Mobile Marketing
Thank you for this.  Again, this is what AR is all about.  Thank you for the information.
Jul 03, 2007 01:11 AM #21
Rainmaker
770,797
Lanre-"THE REAL ESTATE FARMER" Folayan
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.
Thank you for this one man. This is very useful information. I have a lot of potential clients who can benefit from this program.
Jul 06, 2007 12:18 PM #22
Rainer
7,295
J.R. Quarles
Mortgage Executives LLC - Memphis, TN
The Mortgage Innovator
I Do agree!!!  My community is the best thing since slice bread... Its becoming my bread and butter loan program
Jul 08, 2007 09:26 AM #23
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Victor Emeli

www.HouseWealthy.com
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