By Jeff Smith
- Fannie Mae Community Homechoice Program
- Fannie Mae Disability Home Loans
- Fannie Mae Community Homechoice Program Lenders
- Fannie Mae Doctor Program
- The Fannie Mae Community Homechoice Program
- Fannie Mae Community Homechoice Program
Fannie Mae offers the Community HomeChoice Program, that provides help to low and modern income people with disabilities and also to the able-bodied people who care for them. The minimum credit score for a single family home is 680, and you don’t need any reserve requirements. Federal National Mortgage Association (Fannie Mae) designed the Community HomeChoice mortgage product for people with disabilities or with family members who. The Fannie Mae Community HomeChoice program, available in all states, offers disabled borrowers low down payment programs, mortgage-qualification aid such as lower debt-to-income requirements.
If you’re part of the 25% of U.S. adults living with a disability, you’re likely used to overcoming obstacles. However, when it comes to buying a home, the process may seem daunting. Renting may not be an option due to the lack of necessary accommodations, so buying is often the best choice to ensure your home fits your needs.
While securing a mortgage and buying a home has its upsides, there are also some potential risks to be aware of. First off, you are responsible for all maintenance and repairs. You must either perform them manually, or pay someone to take care of it for you. Depending on your disability and income level, this may be especially difficult.
Lastly, it’s important to build up a solid amount of savings before buying. That way, you’ll be able to make the necessary changes to improve accessibility, and you won’t struggle to pay your mortgage or even lose your home. This would likely hurt your credit, making it harder for you to find a mortgage or landlord in the future.
Despite the challenges of being a homeowner, you’ll be glad to know that there are several mortgage options and financial aid programs available to make it easier. This guide is intended to provide all the information you need to secure a home loan while living with a disability.
Fannie Mae, Freddie Mac and the Federal Housing Finance Agency (FHFA) set conforming mortgage limits that apply to all lenders. You typically receive the lowest mortgage rate if your loan amount is below the mortgage limit for your county.
Table of Contents
How Does the Government Define a Disability?
The federal government defines a person with a disability as someone who:
- Has a physical or mental impairment that substantially limits one or more “major life activities”
- Has a record of such an impairment
- Is regarded as having such an impairment
“Major life activities,” as defined by the the Department of Housing and Urban Development (HUD), include walking, speaking, hearing, seeing, breathing, working, learning, performing manual tasks, and caring for oneself. It also includes the operation of major bodily activities.
HUD gives examples of a “physical or mental impairment” such as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, HIV, developmental disabilities, mental illness, drug addiction, and alcoholism.
These are just a few examples of types of disabilities. Any impairment that is found to impose a substantial limitation on a major life activity is considered a disability by the federal government and will qualify you for mortgage programs and financial assistance for people with disabilities.
Federal Mortgage Programs for People with Disabilities
Thanks to numerous government-sponsored associations, there are plenty of mortgage programs available for people living with disabilities. Take some time to consider your options and find the one that best fits your needs.
Homeownership Voucher
HUD offers the Housing Choice Voucher (H.C.V.) homeownership program. If you don’t have a voucher, you will need to find a Public Housing Agency that offers an HCV program in your area. To help, visit their homeownership enrollments report. Keep in mind that waiting lists may be long.
An HCV covers the cost of the mortgage principal and interest, real estate taxes, homeowners insurance, mortgage insurance, utilities, maintenance and repairs, and the cost of making the home accessible.
These are the requirements to obtain a voucher:
- Your income must not fall below the minimum Supplemental Security Income benefit for an individual living alone.
- You must be a first-time homeowner.
- You must complete the required homeownership and housing counseling program.
Federal Housing Administration
The Federal Housing Administration (FHA) is a subsidiary of HUD that provides mortgage insurance on home loans from approved lenders. Use HUD’s tool to find approved lenders.
An FHA loan is generally less expensive than a regular home loan because it is backed by the US government. For this reason, it may be a good option for someone with a disability who has limited income.
Fannie Mae
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:
![Program Program](https://4.bp.blogspot.com/-SU_UNnsp0X8/Vht5aumijVI/AAAAAAAADuw/IY5PtniArmA/s1600/free_home_repair_grants_for_low_income.jpg)
- Low down payment programs
- Mortgage-qualification aid such as lower debt-to-income requirements
- Lenient credit evaluations
- The ability to include rent payments from boarders in income calculations
USDA Single-Family Housing Direct Home Loans
The US Department of Agriculture and Rural Development offers special subsidized housing for low-income households. You don’t need a down payment and your interest rate can be as low as 1%, given you are:
- Unable to find safe, sanitary housing
- Unable to get an affordable mortgage
- A citizen or eligible non-citizen
- Not barred from federal loan programs
- Not over the income limit for your area
Disabled borrowers can use these funds to help build the necessary accommodations needed depending on their disability.
VA Home Loans for Disabled Veterans
Disabled veterans have a multitude of housing benefits. You may be eligible for grants to help make your home accessible, including The Specially Adapted Housing (SAH) Grant and Special Housing Adaptation (SHA) Grant. In addition, if your disability is service-related, the following rules apply:
- There is no minimum time you must serve before being eligible for a VA home loan.
- You may be exempt from funding fees.
Help from State Agencies
Many states offer additional home-financing assistance specially for people with disabilities. Some examples include:
- Maryland’s Homeownership for Individuals with Disabilities Program
- Connecticut’s Home of Your Own Program
- Disability and property tax exemptions for residents of Alabama
Visit disabled-world.com/disability/finance/american-home-loans.php to view the benefits available in your state.
Non-Profit Homeownership Programs for People with Disabilities
While there are many federally-backed programs to help you find affordable housing, many non-profit organizations have stepped in to offer additional assistance. Here are just a few ways to find housing help outside of the government.
Habitat for Humanity
Habitat for Humanity offers affordable housing to lower-income individuals and families, which may include those with disabilities. There are hundreds of locations all over the U.S. Find one near you by entering your zip code here.
Here are some things to keep in mind when applying for a Habitat home:
- You must demonstrate a need for safe, affordable housing.
- You must participate in “sweat equity,” or be actively involved in the building of your home. This could include manual labor, homeownership classes, or volunteering.
- You must be able and willing to pay an affordable mortgage, which will in turn help build more Habitat houses for others in need.
Rebuilding Together AmeriCorps
Rebuilding Together works with companies like Lowes and Sherwin Williams to offer home repairs and modifications for families with one or more disabled members. They offer a safety checklist to ensure all the right home features are present. Rebuilding Together helps families in 39 states, so visit their list of locations to find an affiliate near you.
Homes for Our Troops
Homes for Our Troops offers mortgage-free homes for veterans who were wounded in oversees combat after September 11th, 2001. To qualify, you must:
- Be retired or be in the process of retiring
- Pass a criminal and credit background check
- Receive a letter of eligibility from the VA Specially Adapted Housing Program
To apply, complete an online inquiry form at https://www.hfotusa.org/inquiry.
Knowing and Understanding Your Rights
When it comes to securing a home loan, there are laws and regulations put into place to protect people with disabilities. It’s important to know the rights that protect both renters and buyers from discrimination.
Remember that if you suspect you are experiencing discrimination based on a disability, you can file a complaint.
Wpe pro english. Here’s who to contact:
Office of Compliance and Disability Rights Division
Office of Fair Housing and Equal Opportunity
U.S. Department of Housing and Urban Development
451 7th St., S.W., Room 5242
Washington, DC 20410
Office of Fair Housing and Equal Opportunity
U.S. Department of Housing and Urban Development
451 7th St., S.W., Room 5242
Washington, DC 20410
Phone: (800) 669-9777TTY: (800) 927-9275
The Fair Housing Act
The Fair Housing Act was amended in 1988 and legally prohibits the following:
- Refusal to sell or rent to any person on the basis of race, religion, gender, disability, familial status, or national origin
- Discrimination based on race, religion, gender, disability, familial status, or national origin related to privileges or conditions of the rental or sale of a dwelling
- Advertising the sale or rental of a dwelling indicating preference or limitation based on race, religion, gender, disability, familial status, or national origin
- Threatening or interfering with a person’s exercising their housing rights based on discrimination
- Retaliating against an organization that encourages exercising these rights
Reasonable Accommodations
The Fair Housing Act allows you the right to request reasonable accommodations that allow you to fully enjoy your housing. For example, if you are in a wheelchair, reasonable accommodations for an apartment may include a lower mailbox or an assigned parking spot.
A landlord or housing provider may be able to refuse these requests if they create undue financial or administrative burden. If this is the case, there are many grants available to help pay for these accommodations.
Reasonable accommodations also include service animals. This means that a landlord with a strict “no pets” policy may be required to grant an exception for someone who is visually impaired and has a guide dog.
Living with a disability can pose many challenges, but that doesn’t have to stop you from living in a great home. You don’t have to tank your credit score or drain your savings, either. Simply taking the time to know your mortgage options and legal rights will set you up to buy your dream home at an affordable cost.
Additional Resources
Sources: The Simple Dollar | The Mortgage Reports | US Department of Labor | Centers for Disease Control and Prevention | Americans with Disabilities Act
About the author
Jeff Smith is VP of SEO and Content at Self.
Fannie Mae (FNMA) CommunityHome Choice
July 10, 2011
POSTING NOTE: Lending programs have undergone significant changes in amounts and qualification criteria in the last several years. Please check current status for up-to-date standards.
Community HomeChoice
Building upon the success of Fannie Mae’s HomeChoice Initiative, Community HomeChoice is our newest tailored solution under MyCommunityMortgage. Community HomeChoice – a single-family mortgage loan designed to meet the mortgage underwriting needs of low-to-moderate income borrowers with disabilities or those who have a family member with a disability – offers flexibility in the areas of loan-to-value ratios (LTVs), down payment sources, qualifying ratios, and the establishment of credit.
Fannie Mae has also mainstreamed eligible sources of income and nontraditional credit requirements into all products in order to serve more people with disabilities. (Lender Announcement 03-07)
According to the Census 2000, U.S. Census Bureau, 49.7 million people have disabilities, representing 19.3 percent of the population – or nearly one person in five. Our commitment to increased housing opportunities for people with disabilities is reflected in our American Dream Commitment, a ten-year, $2 trillion pledge to increase homeownership rates and serve 18 million targeted American families by the year 2010.
For Persons and Organizations working with Peoplewith Disabilities
Organizations that serve people with disabilities can provide additional resources and services to help people with disabilities achieve homeownership. These organizations can also assist lenders in developing marketing and outreach strategies, and provide the following services:
- support services;
- pre- and post-purchase homeownership education counseling;
- partnering with designated lenders to help borrowers apply for a mortgage;
- grants to assist borrowers with the down payment and closing costs, access modifications, property repairs, maintenance; and
- budget management.
Community HomeChoice DU Solution
Community HomeChoice loans can be underwritten using Fannie Mae’s Desktop Underwriting® and Desktop Originator®.. The loan should be entered in DU as a Fannie 97â mortgage using the Community Lending product screens. If the DU finding is “Approve/Eligible,” the special flexibilities of Community HomeChoice are not needed for mortgage qualification. In addition to any other applicable Special Feature Codes, Code 325 (“single-family mortgage serving borrowers with disabilities”) should be noted. If the DU finding is “Approve/Ineligible,” the mortgage may be delivered through DU once the lender has confirmed the information requested in the “DU Solutions” attachment to the contract terms for Community HomeChoice. For these loans, as well as loans where the lender has manually underwritten using the Community HomeChoice terms, the lender should note Special Feature Code 222 (“Community HomeChoice”) in addition to any other applicable codes. Nontraditional credit histories will require manual underwriting.
Fannie Mae Community Homechoice Program
Eligible Lenders
Fannie Mae specifically approves lenders that offer CommunityHomeChoice loans. As lenders develop their marketing strategies to reach people with disabilities, they are encouraged to work with organizations that serve people with disabilities.
Eligible Borrowers
Eligible borrowers for Community HomeChoice are any low- or moderate-income person defined as handicapped by the Fair Housing Amendment Act.Lenders can document that a borrower has a disability and is eligible for the Community HomeChoice product by:
- requiring the borrower to self-identify according to the definition of disability as specified above;
- determining that the borrower’s source of income is consistent with having a disability; or
- by other means the lender believes is appropriate.
Borrower’s Income
An eligible borrower’s income may not exceed 115 percent of the area median income (AMI) where the property is located. This income limit may exceed 115 percent in high-cost areas, per the Selling Guide. For purposes of determining income eligibility, lenders shall not consider the borrower’s “non-income” sources of support, as further described below.
An eligible borrower who has a legally appointed guardian or a Supplemental Security Income (SSI) representative payee appointee, may participate in Community HomeChoice, provided they have a 24-month history of managing the financial affairs of the borrower and intend to continue to do so for the foreseeable future.
Determining Income Stability and Continuance
A lender must confirm that a borrower has a history of receiving stable income from employment or other sources, and that there is reasonable expectation that the income will continue to be received in the foreseeable future, usually for three years. A lender should make the determination of income stability and continuance for all sources of income based on the required documentation for the income source as presented in the Selling Guide. Unless there is evidence that the income will no longer be received, the lender should assume that it will continue.
Co-borrowers
Fannie Mae Disability Home Loans
All co-borrowers must sign the note and be underwritten. In determining eligibility for a mortgage, the combined incomes of occupant co-borrowers may not exceed the AMI, except as described above. When a traditional or nontraditional credit profile cannot be developed for an occupant co-borrower, up to 30 percent of the total qualifying income can be used toward the mortgage payment. An occupant co-borrower need not be related to the disabled borrower. A non-occupant co-borrower may be part of the transaction, provided the occupant co-borrower is a disabled person who meets the income restrictions, and the non-occupant co-borrower is a family member or legal guardian.
Eligible Mortgages
Fannie Mae accepts 30 years or less fixed-rate, fully amortizing, level payment mortgages, 7/1 ARMs and negotiated 10/1 ARMs. There is no minimum loan amount, and the maximum loan amount is Fannie Mae’s standard conforming loan limit. Refinancing and limited cash out transactions are available consistent with Selling Guide.
Eligible Properties
Owner-occupied single-family detached houses, townhouses, condominiums, cooperatives, planned unit developments (PUDs), and two-family properties are eligible properties. Property inspection reports are no longer a lender requirement.
Borrowers purchasing properties requiring rehabilitation and/or access modifications are eligible for a Fannie Mae Home Styleâ Renovations product using the Community HomeChoice underwriting guidelines described below, except that the maximum loan-to-value ratio for a combined purchase-rehabilitation mortgage is
97 percent of (1) the sum of the purchase price and the cost of improvements, or (2) the estimated as-completed value of the property, whichever is less.
Loan-to-Value Ratios
For purchase transactions, the maximum loan-to-value ratio is 97 percent based on the lesser of the sales price or appraised value. The cost of the work to be completed and financed by the mortgage may not exceed
50 percent of the property’s appraised value after completion, provided the appraised value of the property fully supports the total acquisition plus rehabilitation costs.
Combined Loan-to-Value Ratios
Subordinated financing is typically used to supplement a borrower’s contribution to the down payment and closing costs. When this results in a combined loan-to-value (CLTV) over 97 percent, the subordinate financing must have grant-like terms, and the CLTV ratio may not exceed 105 percent.
Subordinate financing can be used for accessibility modifications. The maximum CLTV is 120 percent. For CLTVs in excess of 105 percent, the borrower’s obligation under the subordinate financing must be forgivable over time.
Qualifying Ratios
The maximum single qualifying underwriting ratio is 45 percent for the total expense-to-income ratio, except in the following situations:
- The maximum ratio is 43 percent, when there is a temporary interest rate buydown.
- The maximum ratio is 50 percent when the borrower is qualified using a budget-based worksheet as specified in the Community HomeChoice underwriting.
- The maximum ratio is 33 percent for the housing expense-to-income ratio, and 38 percent for the total obligations-to-income ratio when there are co-borrowers, and at least one of the co-borrowers is not occupying the property.
In qualifying a borrower, lenders should give special consideration to income from sources other than wages and salaries ─ including public disability benefits (such as SSI and Social Security Disability Insurance ), private disability benefits, state supplemental income payments, Temporary Assistance to Needy Families (TANF), income from special-needs trusts, and Section 8 homeownership vouchers. Any nontaxable benefit income may be “grossed up” by a factor that reflects the tax savings to the borrower. Non-income sources of support that are specifically committed to the mortgage payment (such as Medicaid waiver funds that cover room and board for a live-in aide) shall also be included in the borrower’s income.
If a non-occupant co-borrower (family member or legal guardian only) is a party to the transaction, his or her income and expenses are included in the calculation of debt-to-income ratio, but excluded from the budget-based qualifying process (described below). The maximum qualifying ratios for occupant co-borrowers is
Fannie Mae Community Homechoice Program Lenders
50 percent, while the maximum combined qualifying ratios for occupant and non-occupant co-borrowers are 33/38 percent. Mentor graphics pads 9.5 crack free download.
Budget-Based Qualification Method
When using a single qualifying ratio of 50 percent, the borrower must also be qualified using a budget-based worksheet that evaluates the borrower’s current income, including non-income sources of support, and actual living expenses. The budget worksheet must demonstrate that the borrower’s income and non-income sources of support are adequate to meet the borrower’s expenses, including the proposed mortgage obligation. The lender or home-buyer education provider may assist the borrower in completing the budget-based worksheet, which must be approved by the lender.
Non-income sources of support may include transportation and meal vouchers, social services and other non-cash support from a government or nonprofit agency that meet the disability-related needs of the borrower, allowances for property maintenance and repairs, as well as Medicaid waiver funds that cover room and board for a live-in aide.
Down Payment
The borrower’s minimum down payment is three percent – based on the lesser of the sales price or appraised value – and the borrower must contribute at least $500 from his or her own funds. The balance of a borrower’s down payment may come form gifts, grants, or grant-like subordinate financing. Fannie Mae’s standard requirements for documenting gifts apply.
Closing Costs
The borrower’s closing costs may be funded in accordance with the requirements for Fannie Mae’s Community Home Buyer’s Program ä mortgages.
Cash Reserves
For a ratio over 41, borrowers are required to have one-month mortgage payment (principal, interest, taxes, and insurance, or PITI) in reserve after closing. For a ratio over 45, two months’ mortgage payments are required. These reserve funds may come from the borrowers own funds or may be gifted. The funds can come from a nonprofit organization or a family member. The reserves may be held by the borrower in a verified savings or checking account, or may be maintained in a segregated account held by the nonprofit organization, or by a family member.
Subordinate Financing
Subordinate financing programs and mortgage documents must comply with Fannie Mae terms for Community Seconds® as stated in the Selling Guide.
Buydowns
Temporary interest rate buydowns not to exceed one-half of one percent for the first three years of the mortgage is permitted.
Fannie Mae Doctor Program
Homebuyer Education
Only first-time borrowers must participate in a home-buyer education program. Such education shall consist of face-to-face, individual tutoring or classroom-style workshops, making reasonable accommodations to meet the borrower’s specific disability need.
Home Counselor Online
Home Counselor Online is a Fannie Mae Web-based tool, which links the housing counseling process with the loan process and lenders. The comprehensive counseling management tool helps counselors determine a borrower’s financial readiness for homeownership using the Affordability Analyzer; assess borrower’s eligibility for a variety of loan products; build nontraditional credit histories, and more.
Early Delinquency Counseling
Borrowers must sign an authorization form agreeing to participate in an early delinquency counseling program in the event of default.
Mortgage Insurance
Individual loan mortgage insurance coverage is required for all mortgages as follows:
- LTV is 90.01% – 97.00%: 35%
- LTV is 85.01% – 90.00%: 30%
- LTV is 80.01% – 85.00%: 25%
For More Information
To learn more about Fannie Mae or CommunityHomeChoice mortgages, visit our business-to-business Web site, http://www.efanniemae.com. You also can contact your local Fannie Mae Partnership Office listed at
The Fannie Mae Community Homechoice Program
http://www.fanniemae.com/partnershipoffices.
Fannie Mae Community Homechoice Program
Or contact one of our regional offices:
Southeastern Midwestern Southwestern Western Northeastern
(404) 398-6000 (312) 368-6200 (972) 773-HOME (626) 396-5100 (215) 575-1400
Nikon eclipse ti-u manual. Fannie Mae (TTY): 1-877-TTY-HEAR