Earlier this month, Fannie Mae changed the pricing on their My Community program across the board to all lenders by 1% increase to fee. If you’re using a My Community program and you’re transaction is not yet closed, you may want to check with your Loan Originator to make sure your lock is still valid.
Mortgage Programs
Not all mortgage loans are the same — and choosing the right program can make a significant difference in your payment, qualification, and long-term financial flexibility.
This section covers the most common and specialty mortgage programs available to homebuyers and homeowners, including:
- FHA Loans
- VA Loans
- USDA Loans
- Conventional & Jumbo Loans
- HomeReady & Home Possible
- Down payment assistance programs
- Washington State Housing Finance Commission (WSHFC) programs
- Specialty programs for medical professionals and unique scenarios
Understanding eligibility guidelines, loan limits, credit requirements, and program benefits allows you to compare options strategically rather than relying on headlines or general advice.
As a Mortgage Advisor with over 25 years of experience, I help clients evaluate which program best aligns with their income, assets, and long-term plans.
Explore the programs below to better understand your options.
ARMS Defined
April 8, 2007 by 2 Comments
Adjustable Rate Mortgages, also referred to as ARMs, come in many shapes and sizes. This post will be focusing on fixed period ARMs, such as the 3/1, 5/1, 7/1, 10/1…etc. that feature a fixed rate period before adjusting.
The Low Down on Fannie Mae Flex
March 28, 2007 by 2 Comments
Update: This is a classic example of the trouble with writing about mortgage programs…some are no longer available. When researching about mortgages on the internet, please be sure to check the date of the article.
With many of the zero down options tightening up, it's time to return to the mortgage programs that were popular a few years ago before the 80/20s were all the craze. One such program worth considering is the Fannie Mae Flex (97 and 100). This is truly a low down program offering either a minimum $500 borrower contribution or 3% flexible contribution.
The Fannie Mae Flex allows for flexible sources of funds for closing costs and prepaids:
- Borrowers own funds (including loans against a 401(k) account or cash-valued life insurance policy.
- Gift or unsecured loan from a relative.
- Grant from non-profit or employer.
- Interested party contributions (to be applied to closing costs and prepaids) such as a Builder or Real Estate Agent.
The Flex program utilizes automated underwriting so minimum credit scores, reserves and qualifying ratios are determined by Desktop Underwriter.
There are no income limitations, such as with My Community programs. The program is limited to conforming loan limits (currently $417,000 for a single family dwelling).
There is private mortgage insurance with this program. However, with a credit score of 620 or higher, a borrower may qualify for LPMI (Lender Paid Mortgage Insurance). The rate with LPMI may or may not pencil out, depending on the credit score and loan to value. Also, private mortgage insurance is tax deductible this year if you meet income limitations.
Sorry folks, this program will not work for manufactured homes.
Currently, I'm helping a couple buy their first home with this program. They are utilizing a gift from their parents for the down payment and the real estate company they are working with rebates part of the commission which will cover their closing costs (including a 1% discount towards their interest rate). The couple will not have to dip too deep into their savings or 401(k). The current interest rate for the 30 year fixed rate is in the low 6%s with a loan to value of 97%. They will pretty much be getting into their first home with the earnest money investment of approx. $2,500 (special thanks to Mom and Dad).
Here's a quick re-cap of the Fannie Mae Flex program:
-
Low down payment
-
Higher debt to income ratios allowed
-
Forgiving of credit scores
Remember, always check with your Mortgage Planner to see which strategy for your home financing best suites your personal needs.
Recently at Rain City Guide…
February 19, 2007 by Leave a Comment
I have been meaning to highlight post over at Rain City Guide on a more regular basis…I’m slipping! Here are a few I thought you might benefit from reading (or just click on over and check them all out).
Earlier this month, Jillayne tackled why you should not shop interest rates by APR. This is a must read if you are a "rate shopper".
There have been a couple post forecasting the future of our local real estate marketing, including this one from Ardell and Jon featured two posts that inspired reactions from the "Bubble Bloggers".
If you’re considering buying home at a new construction site, then Ardell’s post is a good read for you regarding dealing with site agents and when lots are released.
Yours truly added two post to RCG dealing with zero down buyers and the future for subprime borrowers.
Enjoy!
Not a Good Option
January 16, 2007 by 7 Comments
Yesterday, one of my clients asked me about Pay Option ARMs. These loans are probably the most heavily advertised products promoted on the radio. I cringe every time I hear the announcer boast about the low start rates of anywhere from 1 – 3%. Pay Option ARMs are marketed by many different names, such as pick-a-payment or cash flow ARMs. [Read more…]
