| Q:
|
What
is the Community Home Buyers program?
|
| A:
|
The
Community Home Buyers loan program
is sponsored by the Federal National
Mortgage Association, commonly referred
to as Fannie Mae, and administered
through participating direct lenders.
Fannie
Mae's Community Home Buyers program
has an income cap of 120 percent
of the area's median income. In
addition, the borrower must attend
a seminar on home ownership and
the home buying process.
It
is not geared only for first-time
home buyers, unlike many of the
other low-down -payment programs
on the market.
This
loan program allows for 97 percent
financing. The borrower may put
as little as 3 percent of his or
her own money, with the remaining
2 percent coming in the form of
a family gift or loan from a government
or nonprofit agency.
For
more information, call Fannie Mae
at (800)732-6643; fanniemae.com.
|
|
| Q:
|
How
can Fannie Mae help a home buyer?
|
| A:
|
Fannie
Mae's Community Home Buyers Program
allows first-time buyers with little
cash to obtain 95 percent financing.
Participants may put down as little
as 3 percent of their own money, with
the remainder permitted in the form
of a gift from family members, a government
program or nonprofit agency. Mortgage
insurance is required on all loans
above 80 percent loan-to-value ratio
when borrowers do not use their own
funds for at least 5 percent down.
The program is administered
through participating lenders. There
are income limits in different states.
However, the income restriction
is waived when borrowers participate
in the Fannie Neighbors program.
Fannie Neighbors also has lower
income requirements for borrowers
who want to buy in designated central
cities.
People who are borrowing
in either of these programs must
attend a seminar on home ownership
and the home buying process.
For a list of participating
lenders, call Fannie Mae at (800)
732-6643; fanniemae.com. |
|
| Q:
|
Who
is Fannie Mae? |
| A:
|
Fannie Mae is a congressionally
chartered secondary-mortgage market
company that buys loans from private
lenders. Because the firm is so big
and has been involved in purchasing
packages of loans from lenders for
25 years, it has enormous influence
on the mortgage market. For more information,
visit fanniemae.org or call Fannie
Mae at (800) 732-6643. |
|
| Q:
|
Are
there Fannie Mae programs for inner
cities? |
| A:
|
Home
buyers in urban neighborhoods can
take advantage of the secondary mortgage
market institution's Fannie Neighbors
Program.
This
mortgage plan was created to increase
homeownership and promote revitalization
in central cities as well as minority
low and moderate income "targeted"
areas. Borrowers need less income
to qualify for a mortgage and less
cash for closing than with standard
mortgages. The program includes
mortgages to buy or refinance a
home.
Fannie
Neighbors has no income limit for
residents who are purchasing a home
within designated central cities
(if not the largest city in a metropolitan
area, cities must have populations
of 250,000 or more.) Borrowers must
attend a seminar on home ownership
and the home buying process. For
a list of participating lenders,
call Fannie Mae at (800) 732-6643.
|
|
| Q:
|
What
is Fannie Mae's low-down program?
|
| A:
|
Fannie
Mae is expanding the availability
of low-down-payment loans in an effort
to help more people nationwide qualify
for a mortgage. Two new programs
will help potential buyers overcome
two of the most common obstacles
to home ownership, low savings and
a modest income.
To address many
first-time buyers' struggles to
save the down payment, Fannie Mae
developed Fannie 97. The program
provides 97 percent financing on
a fixed-rate mortgage with either
a 25- or 30-year loan term through
Fannie Mae's Community Home Buyers
Program.
Fannie Mae's new
Start-Up Mortgage will assist buyers
with a 5 percent down payment who
are at any income level. Yet applicants
do not need as much income to qualify
and less cash for closing than with
traditional mortgages. Borrowers
will receive a 30-year, fixed-rate
mortgage with a first-year monthly
payment that is lower than the standard
fixed-rate loan.
Freddie Mac, Fannie
Mae's counterpart, also offers low-down-payment
loan programs. |
|
