Low down payment optionsFlexible credit requirementsReduced mortgage insurance
Secure a competitive interest rate and enjoy a lower monthly payment.
Get closing credits and big savings as you start your homeownership journey.
Empower your homeownership goals in certain specific areas.
Over 730K clients. 23 years’ experience. One goal: helping you build a brighter future.
See your best loan options with technology that analyzes your finances in real time.
Pick the right loan and term that helps you achieve your unique homeownership goals.
Get approved and funded quickly, so you can enjoy your new financial freedom.
See your best loan options with technology that analyzes your finances in real time.
Pick the right loan and term that helps you achieve your unique homeownership goals.
Get approved and funded quickly, so you can enjoy your new financial freedom.
Community lending programs are conventional loans; but with reduced down payment, lower mortgage insurance, and flexibility built for borrowers who don't fit the standard profile.
Community lending makes the path to homeownership cheaper for the right borrower; but the income limits and education requirements aren't a fit for everyone.
3% down on a conventional loan, often with flexibility on the source of those funds; gifts, grants, and assistance programs are typically welcome.
Community lending programs use reduced MI coverage levels, which translates to lower monthly MI cost than a standard conventional with the same down payment.
MI cancels at 80% loan-to-value (versus FHA's lifetime MIP on most loans), and there's no upfront mortgage insurance premium.
Programs accept non-borrower household income for qualifying in some cases, and rental income from boarders can count toward qualification.
These programs are designed to work with state, county, and local down payment assistance programs to maximize affordability.
Most community lending programs cap borrower income at 80% of the area median income. Above that, you'll use a standard conventional loan.
First-time home buyers typically must complete a homeownership education course before closing. It's valuable, but it's an extra step.
Lower than standard, but still a real monthly cost until you reach 20% equity. Plan for it in your budget.
Some programs restrict eligibility based on property location, type, or occupancy. Confirm your home qualifies before counting on the program.
Community lending is flexible on income and down payment, but still requires solid credit, documented income, and a sensible debt-to-income ratio.
Community lending programs balance flexibility with discipline; the eligibility rules ensure the program reaches the borrowers it was built for.
Borrower income (or in some cases area-based limits) caps at 80% of area median income on most community lending programs. Some allow higher limits in designated low-income census tracts.
First-time home buyers are typically required to complete a HUD-approved homeownership education course before closing.
620 is the typical floor on conventional community lending programs. Some programs accept alternative credit documentation for borrowers with thin files.
The home must be your primary residence. Investment properties and second homes don't qualify for community lending programs.
A community lending program is a type of mortgage that helps people with low to moderate incomes buy a home by lowering the down payment, making credit requirements more flexible, and giving them money that traditional loans don't always give. Continue Reading...
Community lending loans provide qualified buyers with affordable mortgage options like fixed- or adjustable-rate loans. They also offer low-income loan options. Eligibility usually requires buying in a specific census-designated tract or area. You’ll also need to meet specific income and credit score requirements. These help buyers save while also building stronger communities.
