Fannie Mae Expanded Approval with Timely Payment Rewards
Fannie Mae MyCommunity Mortgage
| Program Overview | |
| Fannie Mae Expanded Approval with Timely Payment Rewards is a an option in Fannie Mae’s Desktop Underwriter automated underwriting system that allows lenders to take a more comprehensive view of a borrower’s credit-worthiness. As a result, lenders can offer mortgage loans to many borrowers who previously were unable to receive conventional financing. Expanded Approval helps borrowers with less-than-perfect credit buy the home they need at a competitive interest rate. The Timely Payment Rewards feature rewards qualifying borrowers with an interest rate reduction of up to one percent after making timely mortgage payments for a consecutive 24-month period within the first four years, thus qualifying them for a one-time interest rate reduction. However, if your credit is good, you may qualify up-front for a lower interest rate. All locations across the United States are eligible for this program.The application fee is $ Determined by Lender. | |
| Who is eligible for this program? | |||||
| A minimum of a 3% borrower contribution (or $500 for 1-unit primary residences) must be made towards down payment or closing costs. The 3% can come from flexible sources, including gifts or unsecured loans from relatives, employers, public agencies, grants, non-profits, or secured borrowed funds. There are no income limitations. The funds for this program are to be used for purchase, limited cash-out refinance and cash-out refinance.Is this program for first time buyers only? Yes | |||||
| Property Eligibility Requirements | |
| There are no limitations on location. Allowable property types: Purchase: 1- to 2-unit primary residences, including condos, co-ops, PUDs, and leaseholds; 1-unit second homes; 1- to 2-unit investor properties; eligible manufactured housing (Level 1 and 2 only). Limited Cash Out Refinance: 1-2 unit primary residences; 1-unit second homes and 1- to 2-unit investment properties; Cash Out Refinance: 1-unit primary residences; 2-unit primary residences (Level 1 only), 1-unit second homes only (Level 1 only). |
| Benefit Details | |||||||||||
This program offers higher loan limits than FHA, with no income limits, geographic limitations, or homebuyer counseling required; competitive interest rates; and considerably lower financing than non-traditional lenders for borrowers. Borrowers are allowed to finance up to 100%. This is a good solution for homebuyers who have concerns about their credit histories and may have less than perfect credits; seek lower than non-conventional rates; have limited funds for down payment and closing costs; or want to reduce monthly payments, without costs of a refinance (allows qualifying borrowers with an automatic interest rate reduction of up to 1% after they make timely mortgage payments for a specified period). Maximum financed amount is $417,700 for a single-family residence or $533,850 for a 2-family residence.
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| Please note: Every attempt is made to reflect accurate and up to date information on housing programs displayed on this site. Some inaccuracies may exist. For verification email MT Housing Resources.Source: Montana Association of Realtors (R) - MTHousingResources.com
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