AHFA has been seeking an opportunity to help potential homebuyers in rural areas, and we are proud to announce that we have teamed up with Fannie Mae to offer the HFA Preferred Rural Homebuyer Program.
This program will be used in conjunction with the Step Up down payment assistance program and will help lower a homebuyer’s monthly mortgage payment by funding part of the mortgage insurance and waiving the commitment fee.
The split non-refundable mortgage insurance with initial upfront MI rate of 1.50% will be paid by AHFA. The monthly MI premium paid by the borrower will be:
- 95.01% to 97% LTV = 18%
- 90.01% to 95% LTV = 16%
- 85.01% to 90% LTV = 12%
- 80.01% to 85% LTV = 6%
In addition, AHFA is waiving the 15-day reservation commitment fee of 0.5% of the total loan amount.
Additional Information and Qualifications:
- For new or existing homes
- Desktop Underwriter with “Approve/Eligible” recommendation is required
- Per FHFA’s 2018-2020 Duty to Serve High-Needs Counties regulation, property must be located in one of the following counties:
- Barbour, Bullock, Butler, Choctaw, Clarke, Conecuh, Dallas, Escambia, Greene, Hale, Lowndes, Macon, Marengo, Monroe, Perry, Pickens, Pike, Russell, Sumter, Washington, Wilcox
- No sales price maximum
- Borrower(s) qualifying income converted to an annual basis cannot exceed 80% of the Area Median Income (AMI) for property’s location or, $97,300 annual income (whichever is less)
- Click here to use Fannie Mae’s Area Median Income Lookup Tool
- Minimum credit score of 640 is required
- Debt-to-income ratio must be 45% or lower
- Must apply for loan through a participating lender
- No manual underwritten loans permitted
The program will be available July 13 until October 2, 2020.
A webinar will be held tomorrow, July 14, at 10 a.m. to provide more program details and its requirements. Register at
https://bit.ly/3dSH6VJ
.
