That's not a typo, all the words run together. Don't ask us, ask Fannie Mae, it's their trademarked product.

The MyCommunityMortgage program is best known for its no down payment option. With the disappearance of so many exotic lending products after the sub prime collapse, this program still offers a chance to get into a home sans down payment.

Key Features

• 100% Financing

• Up to a 40 year term

• Cash Reserves not necessarily required at closing

• Credit Scores as low as 620 may still qualify for 100% Financing

Drawbacks

• Maximum Income Limitations - that's right, if you make too much money you don't qualify. Maximum allowable income depends on where you live, lower income areas cap out lower. Certain Occupations allow for higher income caps, namely firefighters, teachers, police, and health care workers.

• Limitations on home price - because the loan has income limitations, naturally that will preclude those able to afford a $500K home or more from obtaining this type of mortgage.

• Full Documentation required - sorry, no stating income on this one.

Bankapedia’s Take

With the disappearance of so many loan programs, namely the stated 80/20, the slack needed to be picked up somewhere when it came to no-money-down loans. In the current market (2008-09) there are basically only a few programs that allow a no-down payment loan: MyCommunityMortgage, the FHA loan with a little down payment assistance, and the VA loan. Don't expect any 100% options if property values continue to decline, as the lender is essentially lending over value in a declining market. The biggest drawback to the MyCommunity product is the income limitation, nothing more frustrating than being denied a loan because you make too much money.