<strong>REI CHOICE100</strong> - Down Payment and Closing Cost Assistance - Fannie Mae My Community Mortgage Loans

The REI Choice100 program is just that, it provides you with numerous choices and types of assistance. The program is utilized with Fannie Mae's 95% My Community Mortgage loan. We have structured the program to provide you with a second mortgage of 5% along with the "choice" to pay a higher interest rate and receive an additional 2% or more in assistance. The choice is yours and can be made with direction from your lender.

You can also use this program for a rate/term refinance of existing loans. Any loan that is refinanced must prove a demonstrable benefit to the borrower (i.e. lower payments, term, or interest rates). Cash out refinances are not eligible.

Program Highlights:

Structure: This is a first and second mortgage program that are packaged together. The first mortgage loan is a 30 year fixed rate 95% My Community Mortgage and the second mortgage is utilized to pay the down payment, closing or mortgage insurance premiums associated with the first mortgage.

Second Mortgage: The second mortgage is sized at 5% of the total first mortgage loan amount. The second mortgage is a 20 year fixed rate mortgage with an interest rate of 6.00%. There is no pre-payment penalties on the second mortgage. Borrower may be reimbursed for their earnest money and prepaid expenses.

Lenders: You may use the lender of your choice, if they are approved for the REI Choice100 program. Many lenders throughout the state are approved. If you are using a lender that is not familiar with the program or is not approved, please have them contact Dena Sherrill, REI Down Payment Assistance Manager at 800-658-2823 or dsherrill@reiok.org.

<a href="http://reidownpayment.org/wp/wp-content/uploads/2013/08/2013-Area-Median-Incomes-Bond-Program-2.pdf">Income Limits: Income limits apply based on qualifying income.</a>

Credit Score: Minimum credit score of 680.

Mortgage Insurance: Required coverage amount is lower than normal My Community Mortgage loans.

First Time Homebuyer: You do not have to be a first-time homebuyer for this program.

Homebuyer Education: If all borrowers are first-time home buyers, at least one borrower must complete pre-purchase home-buyer education and counseling.
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