Lending Options

CNH relies upon applicants' ability to qualify for a mortgage to purchase their home.  Personal assistance is provided to help applicants with shopping for mortgages, understanding what specific mortgage product is best for their situation, avoiding predatory lending, completing mortgage applications, and visiting local lenders.  Since CNH records a lien/second mortgage against the property, lenders need to understand and accept this as part of the applicants' first mortgage.  

Fannie Mae Mortgage Products -- Fannie Mae offers a variety of low down payment mortgage financing products through local, pre-approved lenders. These products are originated at local lenders and then sold immediately upon completion to Fannie Mae as long as specified underwriting criteria are met. 

Rural Development Mortgage Products -- Rural Development offers Section 502 Direct Guaranteed, and Leveraged Single Family Housing mortgage loans for families earning 80% of area median income or less by household size.  Many local lenders originate and package these loans on behalf of Rural Development.  CNH is approved to originate and package a limited number of 502 Direct Loans for program clients if requested.  RD mortgage interest rates are subsidized by the Federal government based on a sliding income scaled from 6.375% - 1%.  Generally, the lower the income of the applicant, the lower the interest rate.  Applicants agree to re-certify their income annually which may adjust the interest rate.  Applicants also agree to the recapture requirements of the loan which binds them to repay up to 50% of the amount of the subsidy.

Contact RD for more detailed information at 1-800-944-8119 or click here: http://www.rurdev.usda.gov/mi/Contact Us.htm

or click here for information on RD loans: http://www.rurdev.usda.gov/rd/pubs/pa1556.pdf or http://www.rurdev.usda.gov/mi/sfh/sfhmain.htm.

MSHDA Mortgages -- Several local lenders offer MSHDA mortgages that provide lower interest rates. Low down payments require homes to meet strict requirements before closing.  Down payment assistance is available through MSHDA lenders for  down payment and closing assistance for qualified buyers. CNH assistance is often not allowed to be combined with MSHDA mortgages due to the lien requirement limits.  

FHA Mortgages -- Several local lenders offer FHA mortgages that provide lower interest rates, low down payment requirements, lenient underwriting standards, and require homes to meet strict requirements before closing.  

Conventional Mortgages -- Most conventional mortgages require larger down payments, current market interest rates and high underwriting standards.