My Community Program

Real Estate Agent with Exit Premier Realty

What is the My Community Program?

The My Community Program is designed by Fannie Mae and this program is designed for moderate income home buyers who have limited funds for the down payment and closing costs.

Even when your credit scores are below 660, no money down is still possible.  It is well known that borrowers with middle scores in the low 600's have been approved.  Higher credit scores will compensate if you have high debt-to-income ratios.  Typically a 620 fico score is recommended and we have seen debt ratios of 64% get approved.  Higher fico scores will improve your approval odds greatly.   This is a full documentation program.  There are additional qualifying flexibility options for teachers, police, military personnel, firefighters, health care workers, and those borrowers with disabilities..  

There are income limits for this program.  Borrower's income must not exceed 100% of the medium income for the designated area.  Check the HUD income limit for your area, for example, the HUD income limit ( for My Community loan in Montgomery, Prince George's, Calvert, Charles, and Frederick County, Maryland is $94,500.

If you were to choose an FHA loan, you will be required to put 3% into the transaction.  With My Community there is no minimum requirement.  FHA loans have upfront Mortgage Insurance (MI), plus your monthly Mortgage Insurance..  With My Community, Lender Paid MI is an option.  This means that you can opt for a slightly higher interest rate so you will have no mortgage insurance.  If you choose the mortgage insurance option, My Community allows for a reduced MI of 20% coverage or a factor of .59%, and there is no upfront fee (fha has).  A $180,000 loan would cost $88.50/month, which is $54.50 less than the old premium calculation of $144.00/month.  The loan must get approved through our automated Fannie Mae engine first, to get this lower MI rate.

This program is very popular and is putting many first time home buyers into their otherwise unattainable homes. 
Highlights include:
- 100% financing up to $417,000 loan amount.  97% for 2 unit property, and up to 95% for 3 or 4 unit.
- Available for home purchase or refinance.  You do not have to be a first-time home buyer.
- Fixed and adjustable rate products available, including Interest-only and 40 year ammortizations.
- up to 6% contribution from the seller, which must be used towards the closing costs and prepaid items.

While searching more about My Community I came across one of our members posts about My Community and Recent Changes: these changes take affect as of 10/12/2007.



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Maryland St Mary's County Lexington Park
St. Mary's County Real Estate Pros
first time home buyer
no downpayment
medium credit score
credit score
my community

Comments 7 New Comment

Matthew Rosov
Certified Mortgage Planning Specialist
Amerisave Mortgage Corporation

Thanks for sharing, Donna. 

Lanre - the major banks have this program available to them.  Bank of America, Countrywide, Wells Fargo, etc.

You shouldn't have any problems finding one that fits your client's needs.

September 26, 2007 06:56 AM
Lanre Folayan
I don't make promises. But I do deliver results.
Keller Williams Capital Properties-Buy a home in Washington DC. Sell a home in Washington DC
Matthew- Thank you very much. But with Countrywide and Wells Fargo possibly folding,Who else do you know that will be still doing My Community Program.
October 04, 2007 06:53 PM
Kimberly Grant
Real Estate Agent - Huntsville Alabama
Exit Leon Crawford Realty
This is a popular program right now in my area.  I have heard good feedback on those that were able to use this program to get into their first home.
October 04, 2007 08:50 PM
Lewis Poretz
- Mortgage Branch Opportunities - Nationwide
AnnieMac Home Mortgage

Donna -  my community is a fannie mae program - most investors that offer DU offer this program

 i have seen very low scores get approvals....   freddie also has a similar program -  home opportunities...

if you have more questions give me a buzz and i will be glad to answer them      

October 08, 2007 09:06 PM
Danita Allen
Haven Realty Centers
This is a very good program that has worked for several with lower scores as well.
January 13, 2008 05:26 PM

Donna Whitaker

Exit Premier Realty
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