We are going to discuss two newer conventional loan products. One is backed by Fannie Mae and is called My Community Mortgage. The other is backed by Freddie Mac and is called Home Possible Advantage.
Below is a grid to help answer some frequently asked questions.
| Fannie Mae/ My Community Mortgage | Freddie Mac / Home Possible Advantage |
| Only for 1st-time home buyers | Does not need to be a 1st-time home buyer |
| Purchases and FNMA rate & term refinance (only if current loan is backed by Fannie Mae) | Purchases and all rate & term refinances (doesn’t matter who backs the loan) |
| Income cap is the area median | Can exceed Area Median Income Cap for underserved areas |
What is the income cap, and how to check it?
The Area Median Income is the average income for a particular area. In Florida, it ranges from as low as $49,500 in Washington County, to as high as $65,400 in Alachua County.
In more populated areas like Duvall, Hillsborough and Miami-Dade counties, the AMI is $63,200, $57,400 and $56,400, respectively. So you can see it varies a considerable amount.
Here’s a great tool to use to search Area Median Income:
https://ami-lookup-tool.fanniemae.com/amilookuptool/
What is an Underserved Area?
According to Freddie Mac, underserved areas are determined on the basis of median income and minority population levels in specific census tracts, which are generally smaller areas than counties. Basically, imagine there being a bunch of little zones or pockets within the county. The income- and minority-level requirements for being underserved vary by area. This can be tricky, so if you have any questions determining this, call my team and we’ll be glad to help (813-707-6200).
Freddie further defines an underserved area as follows:
“Census tracts or block numbering areas in which median income does not exceed 80% of the area median income; minority census tracts where families reside and have an income that does not exceed area median income at the time of loan origination; and census tracts designated as disaster areas where families reside and have an income that does not exceed area median income at the time of loan origination; or
“Minority census tracts – census tracts that have a minority population of at least 30% and a median income of less than 100% of the area median income.”
If you have any questions about this, remember to call 813-707-6200.
As always, Florida Mortgage Firm offers Fannie Mae and Freddie Mac financing. Don’t lose deals by using someone who only offers Fannie Mae. We have a multitude of deal-saving programs. Check them out by CLICKING HERE.
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