There are also four special mortgage options that lenders and nonprofit organizations can combine with the three Community Lending mortgage products to create a mortgage that is tailored more specifically to a borrower's home-buying needs:
* FannieNeighbors® is a nationwide, neighborhood-based mortgage option designed to increase homeownership and revitalization in areas designated as underserved by HUD, in low- to moderate-income or minority census tracts, or in central cities. The FannieNeighbors option adds underwriting flexibility to Fannie Mae's Community Home Buyer's Program mortgage product by removing the income limit if a property is located in one of these areas. Lenders and other housing professionals can use the Fannie Mae Property GeoCoderTM, a free, online application to determine whether a property qualifies for the FannieNeighbors option.
* Community Seconds® is a second lien mortgage that can be combined with one of Fannie Mae's Community Lending mortgage products to increase affordability. This mortgage option is typically provided by a federal, state, or local government agency; an employer; or a nonprofit organization. It may be forgivable, offer deferred payment, or other special terms.
* Lease-Purchase is an option that nonprofit organizations can use to help borrowers who have successfully managed their credit obligations in the past, but have insufficient savings for a down payment. With Lease-Purchase, nonprofit organizations can purchase homes that can be leased with an option to buy. Part of the rent payment is saved for the purpose of accumulating the down payment and closing costs needed to buy the home. The mortgage may then be assumed by the borrower from the nonprofit at a later time, usually three to five years after the initial lease date.
* Community Land Trust is an option that nonprofit organizations can use to provide and preserve long-term affordable housing for low- and moderate-income families. Typically, a nonprofit organization acquires and holds land for the benefit of a community. The community land trust retains title to the land, but sells the homes under long-term ground leases to low- and moderate-income families at affordable ground rents. A lender originates a first leasehold mortgage loan using one of Fannie Mae's three basic Community Lending mortgages, and Fannie Mae purchases the leasehold mortgage from an approved lender.
