Fannie Mae American Dream
- Question: What are the advantages of the Fannie Mae American Dream Mortgage Program?
- Answer: We believe that this is the most flexible, low cost home loan program anywhere. Some of the fantastic highlights include liberal credit requirements, discounted Private Mortgage Insurance (PMI) rates, allowance for seller paid closing costs, and a very accommodating allowance for limited "undocumented income".
Credit Score Guidelines
| Max Loan Amount | Max Financing | Credit Score | Seller Contribution Allowed |
| $417,000 | 100% | 620 | 6% |
Special Features:
Undocumented Income: Undocumented income is acceptable as a supplement to borrowers primary documented income and may not exceed 25% of borrowers primary income or $1250 per month whichever is less. Income source is stated by borrower but not verified. Income source must "make sense" in light of borrowers primary occupation and qualifications. A 660 credit score is needed to use this feature.
Non-Permanent Resident Aliens: Allowed. Green card is not required. Borrowers must be legally working and living in the U.S. Valid visa is required.
Housing History: Not required. Borrower is allowed to have been living rent free. But if housing history is disclosed it must show no late payments in the last 12 months.
Reserve Requirements: None. Borrowers is not required to have savings or reserves left after closing
Income Limits: Maximum income is limited to 100% of HUD Median Income, unless the subject property is located in an exception area, in which case there are no income restrictions. If you are concerned about exceeding the income limitations please contact us with the zip code of the subject property and we will advise you accordingly.
HUD Median Income: HUD Median Income is state and county specific. You may find your HUD Median Income at eFannieMae.com.
Qualifying Ratio: Borrowers debt to income ratio may not exceed 45% unless borrower is utilizing the undocumented income feature. Contact us for details.
Acceptable Transactions: This program is for primary homes only and may be used for purchase or refinance. Borrowers must not own any other property.
Home Buyer Education: Not required.
Please feel free to contact us with any questions that you may have regarding the Fannie Mae American Dream program. We will be happy to assist!