Affordable Mortgage programs are geared toward low to moderate income buyers. They usually come with maximum income restrictions based on where you live and allow for Traditional credit grading. Also, many of these programs have no down payment, no reserve requirements, reduced PMI, and allow income from non-traditional sources.

The MyCommunity program is an excellent choice for many first time homebuyers, especially those with minimal cash to put down. It allows you to purchase a home with as little as $500 down. The biggest benefit in addition to flexible credit standards may be that the interest rate, and mortgage insurance rates nearly as low as an FHA loan which typically requires 3% of the purchase price down.

Some banks offer loan programs through mortgage broker to home buyers of properties located in Low-to-Moderate-Income areas. These LMI mortgage programs may offer the home buyers lower interest rates or in the form of incentives to mortgage brokers so the home buyer's settlement fees are lower.

 

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