If you are a Teacher, Boeing Employee, Nurse or Health Care Worker, Pharmacist, Fireman, Police Officer, Paramedic, or Military Personnel, you are eligible to receive a discounted interest rate, reduced private mortgage insurance and a min $500 credit toward closing costs with the Fannie Mae My Community Mortgage Program. These professions tend to be more secure, and as a result, Fannie Mae will have more flexible underwriting guidelines and exclusive discounts available. For example, the debt to income ratio can be as high as 45%, and qualifying credit scores can be as low as 680. .
Benefits of the My Community Program
Unlike the Washington USDA Home Loan Program (zero down), the My Community Program is NOT region specific. However, there are MAX Household Income Limits (please contact Dan for specific county limits). Other benefits include: – 680 min credit score required – 3% down payment (gift funds allowed) – Max 45% debt-to-income ratio – Up to 6% seller credit for closing costs and interest rate buy down – No upfront Mortgage Insurance Premium (compared to FHA – requires a 1% MI Fee) – Reduced monthly mortgage insurance factor (18% MI factor vs 115% MI factor by FHA – see comparison below) – Special Hometown Hero discount (min $500) toward closing costs – Additional Preferred Provider “2012 Buyer Stimulus $20,000 Discount” – Condos are eligible .
The My Community 97 Program (3% down) is a very popular loan program for Washington State First Time Home Buyers. In addition to the USDA Rural Development Zero Down Home Loan and the Washington State VA Home Loan Program, the My Community Program offers a lower cost option and qualifying flexibility as compared to the costly FHA Loan Program. (You can complete the form to your right for a FREE, no obligation rate quote –>)
My Community Program Savings vs FHA
You will see there are savings on three separate levels – (1) With the upfront mortgage insurance premium fee charged by FHA, (2) The monthly mortgage insurance premium, and (3) With the min $500 My Community “Hometown Heroes” Program Discount.
*Rate quoted on 12/29/2011, with no lender fees
So What Do You Do Next?
I encourage all of my clients to conduct a Pre-Mortgage Planning & Credit Analysis prior to shopping for a home. As a faculty member of the Washington State Housing and Finance Commission, I cannot stress enough that you take time to learn about your options and “Know Before You Owe“. You can attend one of our FREE Home Buyer Workshops that I host every 3rd Saturday of the month, or sit down with me to go over a Mortgage Planning Analysis (saving my clients over $12,000 in interest and fees over a 15-year period).
I love working with my readers – So feel free to contact me directly at (425) 350-7136, or at firstname.lastname@example.org for more information on making the an educated decision as you begin shopping for a home!
Helpful Home Buying Links
– Buying A Home With the Washington USDA Home Loan – More Information on Dan’s Home Buyer Workshops – “Know Before You Owe” – How Dan Keller Saves Home Buyers Over $20,000 on the Purchase of A Home – Buying A Home With A Washington VA Home Loan – Buying a Fannie Mae Foreclosure With 3% Down & No PMI
(If you found this information valuable, please click the “Like” button below (on the left), and feel free to share this article on your social networks. Thank you! – Dan)