The Federal National Mortgage Association (Fannie Mae) is a government-sponsored company. Its Community HomeChoice program is available in all states and offers the following housing aid for people with disabilities: Low down payment programs Mortgage-qualification aid such as lower debt-to-income requirements. The Fannie Mae Community HomeChoice program provides assistance to disabled individuals who want to purchase a home but have limited income. Even if your credit rating has suffered, you may qualify for a home loan under this program when receiving Social Security Disability, depending on your Monthly Benefit Amount (MBA). Moved Permanently. The document has moved here. Apr 13, 2020 Fannie Mae's HomeReady® Mortgage program includes special assistance for people with disabilities in the form of flexible underwriting on home loans. Fannie Mae also operates the website KnowYourOptions.com as an educational resource for homebuyers.
- Fannie Mae Disability Home Loans
- The Fannie Mae Community Homechoice Program
- The Fannie Mae Community Homechoice Program
- Fannie Mae Home Choice Program
- Fannie Mae Community Homechoice Program For Disabled
The Pennsylvania Housing Finance Agency (PHFA) offers home loans with competitive interest rates and fees through any of the Agency's first mortgage home purchase loan programs (i.e., Keystone Home Loan, Keystone Government Loan, HFA Preferred™(Lo MI), HFA Preferred Risk Sharing™(No MI)). All programs offer a fixed interest rate for 30 years.
- The Keystone Home Loan program has income and purchase price limits, as well as a first time homebuyer requirement specific to each county.
- The HFA Preferred Risk Sharing™(No MI) and HFA Preferred™(Lo MI) loans have income limits but do not have a first time homebuyer requirement, nor do they have purchase price limits.
- The Keystone Government Loan program does not have income or purchase price limits, as well as not having a first time homebuyer requirement.
Buyers with a disability or a disabled household member, who are eligible for any of these home loan programs, may also be eligible to receive funds to make accessibility modifications to the home they buy and may also be eligible for up to $15,000 in a no interest downpayment and closing cost assistance loan through the Access Downpayment and Closing Cost Assistance Program. The Access assistance loan is only available to buyers who are also using the Access Home Modification Program described below and whose gross, annual household income does not exceed 80 percent (80 %) of statewide family median income as determined by the Federal Department of Housing and Urban Development. It may not be used in conjunction with any other PHFA downpayment and/or closing cost assistance program.
First time buyers may also be eligible for up to $10,000 in a no interest downpayment and closing cost assistance loan through the HOMEstead Program. This assistance may be used with or without the modification program, but the property must meet HUDs Housing Quality Standards, and there are maximum income and purchase price limits depending on the county in which the home is located. The HOMEstead Program is not available in all areas and may not be used in conjunction with any other PHFA downpayment and/or closing cost assistance program.
You may be able to find a home that suits your lifestyle and living needs just the way it is. Or, you may find a home that would suit your needs if certain modifications were made—this is when PHFA's Access Home Modification Program can help. It offers a zero-interest loan between $1,000 and $10,000 in conjunction with a PHFA Keystone Home Loan or Keystone Government Loan. Repayment is not required as long as you occupy the home as your principal residence. Before you sign a sales agreement with the seller, you should first determine if the house suits your present and future living needs, or if it could be made suitable with up to $10,000 in modifications. A professional home designer can help you decide what type of modifications should be made. Common modifications include the addition or repair of an entrance ramp, widening of doors and hallways, installation of grab bars and handrails, bathroom and/or kitchen modifications, and the installation of lifting devices.
If you will be making modifications to the home, you will need to provide the lender with a contract for the modifications. The contract must:
- Be signed by you and a contractor registered with the PA Attorney General's office;
- Be contingent upon approval of your home loan;
- State the specific work to be done and must be supported by specifications, blueprints, drawings, etc.;
- Include the actual maximum amount that can be charged (not estimated amount);
- Include a release of lien clause to maintain clear title;
- State that the contractor agrees to complete the work in compliance with all applicable building codes and zoning restrictions and to obtain the necessary permits and a certificate of completion within 90 days of your closing date.
The appraisal of the home will be based upon the as-is condition of the home. In other words, the home's value does not have to support the amount of the modifications. The funds for the modification(s) will be held in escrow when you close on your home. An initial payment in an amount up to 1/3 of the contract amount may be disbursed to the contractor at or after your closing date.
If you think you might be eligible for a PHFA home loan (with or without any additional assistance loans), contact a participating lender. PHFA does not handle the mortgage application process. Instead, there is a network of lenders and brokers throughout the state that will process and close the loans. PHFA then buys the loan from them immediately following the loan closing (also referred to as Settlement). So, you would be making your mortgage payment directly to PHFA for the life of your loan. The lender will be able to determine if you qualify for a home loan and, if so, how much of a home you can afford. You should not rely on the lender to determine if and what kind of access modifications would be right for you. That is up to you.
PHFA also offers homebuyers the opportunity to receive homebuyer counseling and education through one of its approved counseling agencies. Attending a pre-closing course is required for borrowers with a FICO credit score lower than 680. However, we strongly encourage you to seek the assistance of a counselor before you sign a sales agreement, especially if you are a first-time buyer. Becoming an informed buyer will help you learn what questions to ask and how to understand the home buying process. It will also help you identify and avoid unscrupulous lenders and contractors that do not have your best interests at heart.
Fannie Mae Disability Home Loans
Moving into your new home is just the start to the benefits and responsibilities of owning your own place to live. Sticking to a sound budget will help you keep up with your mortgage payments and save some funds for future replacement and maintenance items. Keeping your home attractive and in good repair will help it to maintain or even increase in value. Getting to know your neighbors will provide you with a sense of community and security. When you start off on the right foot, you can have peace of mind knowing that you made the best decision on what will probably be the largest purchase of your lifetime.
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Fill in this short contact form to be contacted about government-backed home purchase programs. Learn more about available programs and qualification requirements below.
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There are several federal government programs designed to help Americans purchase a home. Each of these programs has unique benefits and requirements.
The Fannie Mae Community Homechoice Program
General requirements:
1. Minimum credit requirements: While low credit scores are often acceptable for government refinance programs, for government home purchase programs you normally need a middle credit score of 580 or higher to qualify. Also, you normally need to be 2-3 years out of any home foreclosures or chapter 7 bankruptcies.
2. Income requirements: To qualify for a home purchase loan, you will need to show the ability to comfortably make your new payments. You normally need to show that your gross monthly income (meaning income before taxes and other deductions are taken out) is more than twice the combined minimum monthly payments on all of the debts you are paying off.
As an example, if a family’s before-taxes income is $5000 per month, they would want the total payments on their debts (including the new mortgage, car payments, student loans, credit cards, and so on) to be no more than 50% of $5000, or $2500 per month. Contact us to speak with someone who can run calculations on your debt to income ratios.
Available Programs
The Fannie Mae Community Homechoice Program
Here are some basics on the most prominent government-backed home purchase programs:
- FHA program
– Requires just 3.5% of the loan amount as a down payment. (With FHA purchases, it is wise to have at least 4% of the purchase price available to help cover the appraisal fee and other costs at closing)
– Available everywhere in the U.S.
– The FHA has an up front mortgage insurance fee of 1.75% of the loan amount rolled into the loan and then has a monthly mortgage insurance fee for the life of the loan
– There are limits to the maximum loan size depending on to state/county the home is in
– The FHA program has the most lenient underwriting standards with regard to past credit problems and medical collections of any of the major home loan programs
VA program
– Available everywhere in the U.S.
– The FHA has an up front mortgage insurance fee of 1.75% of the loan amount rolled into the loan and then has a monthly mortgage insurance fee for the life of the loan
– There are limits to the maximum loan size depending on to state/county the home is in
– The FHA program has the most lenient underwriting standards with regard to past credit problems and medical collections of any of the major home loan programs
VA program
– Only available to military veterans with VA eligibility
– No down payment required
– No ongoing mortgage insurance
– Lenient credit score requirements
– The VA has an up front funding fee that rolls into the loan (up front VA fee waived when veteran has VA disability status)
– No down payment required
– No ongoing mortgage insurance
– Lenient credit score requirements
– The VA has an up front funding fee that rolls into the loan (up front VA fee waived when veteran has VA disability status)
USDA rural housing program
– This purchase program only applies to homes designated as being in rural areas by the USDA (contact us to check on eligible properties)
– No down payment required
– Requires a 1.0% guarantee fee rolled into the loan and small monthly mortgage insurance fee
– There are limits to the amount of income a family can earn to be eligible for this program. Families that make too much money will not qualify.
– Underwriting and credit score requirements on USDA rural housing loans are generally more stringent than FHA loans
– No down payment required
– Requires a 1.0% guarantee fee rolled into the loan and small monthly mortgage insurance fee
– There are limits to the amount of income a family can earn to be eligible for this program. Families that make too much money will not qualify.
– Underwriting and credit score requirements on USDA rural housing loans are generally more stringent than FHA loans
Fannie Mae or Freddie Mac conventional mortgages
– Normally requires at least 5% down
– Has somewhat stricter income and credit requirements than FHA or VA loans
– No mortgage insurance with a down payment of 20% or more. Down payments of less than 20% require mortgage insurance.
– Loan size up to $453,100 everywhere, even higher loan limits in some high cost areas
– Has somewhat stricter income and credit requirements than FHA or VA loans
– No mortgage insurance with a down payment of 20% or more. Down payments of less than 20% require mortgage insurance.
– Loan size up to $453,100 everywhere, even higher loan limits in some high cost areas
FHA reverse purchase program
– Normally requires at least 40-50% down
– Borrower must but at least 62 year old
– The appeal of a reverse purchase is no mortgage payments for the rest of the borrower’s life. (Let us know in the notes of the contact form if you are interested in learning more about this program)
– Borrower must but at least 62 year old
– The appeal of a reverse purchase is no mortgage payments for the rest of the borrower’s life. (Let us know in the notes of the contact form if you are interested in learning more about this program)
Fannie Mae Home Choice Program
Other
Fannie Mae Community Homechoice Program For Disabled
There are also other local government programs all over the country that can help with a home purchases.