The Fannie Mae Community Homebuyer Program claims it “creates flexibility” for your lender’s typical loan requirements; increasing the purchasing power of the lender, as well as decreasing the total amount of the cost of buying a home. Provides low-to-moderate homebuyers with generally good credit the gift of home financing; These lenders, while having good credit risk, are often turned down due to traditional lending requirements.

It’s largely based on the demographics of your home, hence the word “community.” To be eligible for this program, your overall household income must not exceed the 100% median income mark for your area. They provide services to help you find your general income areas or you can contact local lenders in the community. If you are in certain physical areas that Fannie Mae does not cover, there will be no income level for this program.

Let’s get into the features

Typically when you buy a home you are required to provide a 5 percent down payment, with Fannie Mae’s 3/2 option you have the ability to pay just 3 percent and the other 2 percent is provided by a non-profit organization for profit, a grant from the state, federal or local governments, or by a family member as a gift.

Fannie 97 also inhabits the 3 percent down payment; however, with Fannie 97 it is the closing costs that are paid by grants or family members. This is suitable for a lender who has the income to make and prepare the monthly payments but cannot afford the full 5 percent down payment; The mortgage is presented with a term of 25 or 30 years.

Fannie Neighborhoods is another asset to the Community Homebuyer Program because it adds more agility. If you are using the 3/2 or Fannie 97 option, the income limit is not lifted; however, this home loan adds flexibility by helping to eliminate the income limit within a given central city or eligible census tract.

Also offers home style improvement loans; if you want to refinance and renew or buy and renew. You can make home improvements all in one loan. HomeStyle Mortgages provide homeowners, lenders or buyers the opportunity to start, repair or complete home transformations at low mortgage rates. More and more citizens are buying older homes that need a major renovation or current homes that need fixing up. HomeStyle mortgage loans provide the purchase and renovation combination to the homebuyer or lender; There is a growing need for these mortgages so the increase in these loans is to be expected.

Choosing to buy a new home is a great investment; Monetarily, emotionally and physically. You may need to live in it for only a short period of time and then resell it; making a profit It can be the house of your dreams or one that has given you the passing of generations. Whichever the case, when those monthly payments start coming in or you need help with a down payment, it’s very smart to research which home loan to partner with. Explore your options and research them.