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FannieNeighbors Affordable Housing Solutions
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Fannie Mae offers four special mortgage options that lenders and nonprofit organizations can combine with several of Fannie Mae's Community Lending mortgage products, including MyCommunity Mortgage, to create a mortgage that is tailored more specifically to a borrower's home-buying needs. FannieNeighbors is one of the four special mortgage options.
FannieNeighbors is a nationwide, neighborhood-based mortgage option designed to increase homeownership and revitalization in areas designated as underserved by HUD, in low- to moderate-income or minority census tracts, or in central cities (DOC). The FannieNeighbors option adds underwriting flexibility to Fannie Mae's MyCommunity Mortgage suite and to Fannie Mae's Community Home Buyer's Program mortgage product by removing the income limit if a property is located in one of these areas. Lenders and other housing professionals can use the Fannie Mae Propety GeoCoder -- a free, online application -- to determine whether a property qualifies for the FannieNeighbors option.
Fannie Mae's Community Lending mortgage products and options are designed to help borrowers overcome the two primary barriers to homeownership: lack of down payment funds and qualifying income. Community Lending mortgage products and options have special affordability features, including:
Below are some of the benefits of FannieNeighbors |
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Lower cash requirements for down payment and closing costs, in many cases $500 or 1 percent from the borrowers own funds
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Reduced income requirements to qualify
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Higher debt allowance and loan-to-value ratio than required for traditional conventional mortgages
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In most cases, face-to-face home-buyer education is required for first-time home buyers. Generally, a borrower is eligible if the household income is no more than 100 percent of the median income in the area where the home is located. Some exemptions include higher median income limits in certain high-cost and rural areas; loans made in cooperation with government agencies that have higher income limits; if the property is located in an area designated by HUD as underserved, in an eligible minority or low-income census tract, or in a central city.
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Faniie Mae Affordable Housing Survey helps to understand America's emerging housing needs. |
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