Backed by Fannie Mae and Freddie Mac, this program allows us to help homebuyers purchase a home with only a 3% down payment. This mortgage program is also referred to as the “My Community Mortgage” program. There are many benefits to this loan program including the following:
1) With only a 3% down payment, the My Community Mortgage is now comparable to an FHA loan which requires a 3.5% down payment.
2) Offers a lower monthly mortgage insurance premium compared to other conventional loan programs. This results in a lower monthly payment and more buying power.
3) Unlike FHA mortgage insurance, a homeowner can remove conventional mortgage insurance after they reach 20% equity.
4) Can be beneficial for homebuyers who lack a large down payment but have high credit scores.
How To Qualify?
- Must have a minimum credit score of 620+
- Must meet the maximum income restrictions. Some areas of Colorado do not have any income restrictions. Max income in the Denver Metro Area is $89,900 but many locations have no income limits at all. To check income limits for a specific location, Freddie Mac & Fannie Mar have designated a special map for homebuyers. Just plug in the property address that you’re interested in and see what the income limits are for that property.
[fc id=’1′ align=’left’][/fc]