My Community Mortgage

Mortgage and Lending with The Mortgage Market of Delaware

My Community Mortgage – Community Solutions   

There is a little known mortgage loan program especially for educators, public safety workers, health care workers and military personnel.  Down payment can be as little as 3% and it doesn’t have to come from the borrowers’ own funds. There is no up front mortgage insurance added to the loan balance and the monthly mortgage insurance is about half that of what is required on an FHA home loan.

This loan program allows for flexible sources of funds for closing costs, pre paids and down payment. The seller can contribute up to 3% of the purchase price toward closing costs. The borrower can get an unsecured loan from a relative, a non profit organization, municipality or even their employer.

Eligible borrowers on this type of loan cannot own any other residence at the time of closing. Borrowers without a traditional credit report can even qualify for this loan program.

An example of how this loan program can work is as follows:

$160,000 purchase price with 3% down ($4800). Loan amount is $155,200. If the interest rate is 4.5%, then the principal and interest is $786.38, plus an estimated $45 for home owners insurance, an estimated $70 for property taxes and the monthly mortgage insurance of $99.59. This makes a total housing payment of $1000.97.

The monthly mortgage insurance comes off automatically when the loan to value ratio reduces to 78% whereas with a FHA home loan, the monthly mortgage insurance continues throughout the entire term of the loan.  

This loan is such a great alternative to the costly FHA loan. Also, it is a good fit for borrowers that make more than the maximum income limit on USDA loans or the property may not be in an eligible area for USDA.

Provided by: JoAnn Moore, Licensed Mortgage Professional, The Mortgage Market of Delaware, Georgetown Delaware, NMLS# 165477, Certified Military Housing Specialist, Multi Million Dollar Loan Originator, Office 302.855.1306, Cell 302.236.1229,



Posted by

JoAnn Moore

Comments (1)

Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor
JoAnn, this little-known loan program could be so helpful. Thank you for getting the word out. BTW. It is good to see you again. I hope you are having a good summer.
Aug 05, 2013 01:36 AM

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