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Fannie Mae Expanded Approval with Timely Payment Rewards
Fannie Mae
www.fanniemae.com

Program Overview

Fannie Mae Expanded Approval with Timely Payment Rewards is a option in Fannie Mae's Desktop Underwriter automated underwriting systems that allows lenders to take a more comprehensive view of a borrowers credit-worthiness. As a result, lenders can offer mortgage loans to many borrowers which previously were unable to receive conventional financing. Expanded Approval helps borrowers with less-than-perfect credit buy the home they need at a competitive interest rate. The Timely Payment Rewards feature rewards qualifying borrowers with an interest rate reduction of up to one percent after making timely mortgage payments for a consecutive 24 month period within the first four years, thus qualifying them for a one-time interest rate reduction. However, if your credit is good, you may qualify up-front for a lower interest rate. All locations across the United States are eligible for this program. The application fee is $ Determined by Lender.

Who is eligible for this program?

Minimum of 3% borrower contribution towards down payment or closing costs, can come from flexible sources, including gifts or unsecured loans from relatives, employers, public agencies, grants, non-profits, or secured borrowed funds. There are no income limitations. The funds for this program are to be used for purchase, limited cash out refinance and cash out refinance. Is this program for first time buyers only? Yes

Property Eligibility Requirements

No limitations on location. Allowable property types: Purchase: 1-2 unit primary residences, including condos, co-ops, PUDs, and leaseholds; 1 unit second homes; 1-2 unit investor properties; eligible manufactured housing (Level 1 and 2 only). Limited Cash Out Refinance: 1-2 unit primary residences; 1 unit, second homes and 1-2 unit investment properties; Cash Out Refinance: 1 unit primary residences; 2 unit primary residences (Level 1 only), 1 unit second homes only (Level 1 only).

Benefit Details

This program offers higher loan limits than FHA, with no income limits, geographic limitations, or homebuyer counseling required. Competitive interest rates, considerably lower financing than non-traditional lenders for borrowers. Allow borrowers to finance up to 100%. Good solution for homebuyers who have concerns about their credit histories and may have less than perfect credits; seek lower than non-conventional rates; have limited funds for down payment and closing costs; or want to reduce monthly payments, without costs of a refinance (allows qualifying borrowers with an automatic interest rate reduction of up to 1% after they make timely mortgage payments for a specified period) Benefit: A mortgage with relaxed qualifications that may help buyers qualify who may have had past credit problems. Loan amounts up to 100% of the purchase price; no prepayment penalties, fast loan approval and streamlined documentation is a plus. Loan Term: 30 years Homebuyer Counseling / Education Required: No Owner Occupancy Required: Yes Other Program Comments: Maximum financed amount is $333,700. Timely Payment Rewards is not permitted on ARMs or bi-weekly mortgage payment structure. Balloon loans are not permitted. Fast loan approval and streamlined documentation.

Please note: Every attempt is made to reflect accurate and up to date information on housing programs displayed on this site. Some inaccuracies may exist. For verification contact a certified REALTOR member or a participating Lender.