Who is Eligible?
Any low- or moderate-income person defined as handicapped by the Fair Housing Amendment Act is eligible for the Community HomeChoice mortgage. People with disabilities must:
- self-identify according to the definition of disability or
- prove your source of income is consistent with having a disability
The borrower must have a history of receiving regular income from employment or other sources and that there is an expectation that the income will continue, generally at least 3 years.
All co-borrowers must sign the note. In determining eligibility for a mortgage, the combined incomes of occupant co-borrowers may not exceed the AMI, except as described above. When a traditional or nontraditional credit profile cannot be developed for an occupant co-borrower, up to 30 percent of the total qualifying income can be used toward the mortgage payment.
The minimum down payment is three percent based on the lesser of the sale price or appraised value. At least $5,000 must come from the borrower’s own funds. The balance of the down payment may come from grants, gifts or grant-like subordinate financing.
Fannie Mae accepts 30 years or less fixed-rate, fully amortizing, level payment mortgages, 7/1 ARMs and negotiated 10/1 ARMs. There is no minimum loan amount, and the maximum loan amount is Fannie Mae’s standard conforming loan limit.