My Community Mortgage is changing it’s name soon to Home Ready.  My Community Mortgage is a first time home buyer program designed by Fannie Mae where at least one borrower must be a first time home buyer.  However, their definition of a first time home buyer is not what one would think.  Their definition is where a person has not owned or had an interest in a home over the last three years.  If you or both borrowers are not a first time home buyer and have had an interest in a home for the last three years, then you will need to apply for either the Home Possible, or an FHA loan.  To qualify for the My Community Mortgage this must be your primary residence.  Second homes and investment homes are not allowed.  Here are some high lights of this loan program:

  • 1st Time Home Buyer program- no previous home ownership over the last 3 years
  • 1st Time Home Buyer and counseling certificate is required
  • 640 Minimum fico score required
  • 3% down payment is required
  • Down payment can be gifted to you by an immediate family member
  • Closing costs can be paid by the seller or can be gifted to you by an immediate family member
  • Must receive DU approval
  • Mortgage insurance is cheaper on this program versus an FHA loan
  • Mortgage insurance can either be borrower paid mi or lender paid mi
  • Income restrictions do apply on this program
  • Occupancy type must be single family, townhome, or condo

Since loan program guidelines change constantly, please call our office directly for more clarification.   If you don’t meet the loan requirements of the My Community Mortgage loan program, don’t worry we have plenty of other loan programs to suit your needs and your families.

Remember:  We make lending easy so give us a call.

Experience does matter!