I just received notice that we are once again offering the Fannie Mae My Community Mortgage program. This is an alternative to FHA loans, especially for those with higher credit scores. The My Community program offers financing for purchase transactions on owner occupied single family residences up to 97% loan to value and reduced mortgage insurance requirement.

There are trade-offs, as there always are, but if the current bill raising the FHA yearly mortgage insurance goes through, it could become a much more attractive alternative.

As an example of a comparison between the two (remember only an example and any rates quoted are for comparison purposes only):

As you can see by this example, the pricing is not as good as FHA currently, but if we see a change in FHA yearly mortgage insurance, it could make a huge difference in the future. For now, the great thing about this program is that is shows that the conventional financing is coming back for the lower down payment programs. Now, about a few of the requirements for the program:

• Buyer must complete approved Homebuyer Education program.
• Except for Portland, Beaverton and Vancouver (120%), must not exceed 100% of Area Median Income (AMI). Exceptions for certain census tracts. You can find the AMI here. Also, counties listed as “non metro” have a 115% AMI limit.
• 3% Interested party contributions on loans over 90% LTV (loan to value).
• Primary Residence only with no other property owned.
• 41% maximum DTI (debt to income ratio).
• Minimum 700 mid-credit score.

If you are confused or just want more information about these programs, give me a call. We can discuss your specific information and see what is the best product for you. I am Fred Chamberlin, Senior Mortgage Consultant at Alpine Mortgage Planning, 1200 Executive Pkwy., Eugene OR 97401. I am here to help you with the mortgage loan process and also help you avoid stress. The mortgage process is changing rapidly, make certain you are working with someone that can keep up with the changes. You can reach me at 541-342-7576/541-221-3455 cell or by e-mail. Trust experience to help you with your Eugene/Springfield mortgage questions. One final note, this is not limited to Lane County but can be used anywhere we are doing business. Call today!

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