Fannie Mae Community HomeChoice™ with PHFA Access Modification
This program offers assistance to buyers with disabilities (or those who have a household member with a disability living with them) who want to purchase a home and make access modifications to it, but who do not qualify for a PHFA home purchase loan. Under the program, the buyer obtains a Fannie Mae Community HomeChoice™ loan to finance the purchase of a home. This is coupled with PHFA’s access modification loan.
The Community HomeChoice™ loan offers the following benefits: higher income limits than the PHFA Keystone programs, no purchase price limits, and no first-time buyer requirement. The interest rate is the same as the Keystone Home Loan option with one point and a $300 fee. Buyers can finance up to 95 percent of the lesser of the sales price or the "appraised value". The access modification loan is a no-interest, subordinate loan that does not require repayment as long as home remains the buyer’s principal residence.
For the convenience of those interested in taking advantage of this program, all loan transactions are handled by local lending institutions across the state. Those wishing to apply for a Fannie Mae Community HomeChoice™ mortgage will need to have an agreement of sale or a construction contract when applying at a participating lender.
Program Requirements
You may be eligible for a 30-year fixed rate Fannie Mae Community HomeChoice™ mortgage loan with PHFA access modification assistance if:
- You are a person with a permanent disability or have (a) family member(s) with a permanent disability living in the household, who is purchasing a new or existing home and are not eligible for a loan under one of the Agency's bond programs (i.e., Keystone Home Loan, Keystone Home Loan PLUS, or HOMESTEAD programs).
- You also require an Access Home Modification Loan to retrofit the house being purchased. The amount of the Access Home Modification Loan may not be less than $1,000 or more than $10,000.
- Your current annual household income (projected one year forward, not calendar year income) does not exceed the Community HomeChoice™ income limits.
- The maximum loan amount cannot exceed the Fannie Mae maximum mortgage limit ($359,650).
- You have an acceptable credit history and the ability to make monthly payments on the home you expect to purchase. Your monthly mortgage payment, which includes principal, interest, taxes and insurance, may not exceed 33 percent of your monthly gross income.
- The total of monthly mortgage payments and other monthly payments (car loans, installment debt, etc.), does not exceed 38 percent of your current gross monthly income.
- You have sufficient funds to pay an origination fee of one percent of the mortgage amount plus a $300 qualifying fee as well as any other normal closing costs. (Check with your participating lender to determine the specific nature and amount.)
- You have a downpayment of at least five percent of the purchase price (two percent of which can be a gift from a family member or a Fannie Mae approved nonprofit organization).
- You intend to occupy the property as your principal residence for the term of the loan.
- You are purchasing a single unit. The purchase of two-unit dwellings is not permitted under this program.
Additional considerations:
- Primary mortgage insurance is required on all mortgages in excess of 80 percent of the ‘as is’ appraised value or the purchase price of the property, whichever is less. This program is limited to conventional loans—FHA, VA and RHS loans are not eligible for this program.
- Borrowers with a middle credit score below 660 must complete a Fannie Mae approved homebuyer education program prior to closing.
Applicants with household incomes at or below $45,000 may also qualify for the
Access Downpayment and Closing Cost Assistance Loan Program.
