Expanded Approval
Expanded Approval may be ideal for consumers who have had past credit problems and/or have minimal funds for a down payment or closing costs (often first-time home buyers), as well as borrowers who are currently paying more than fair market value for the credit quality associated with their loan.
Mortgage Products
Fixed
- 7-Year Balloon
- 10-Year
- 15-Year
- 20-Year
- 30-Year
- 40-Year
- Biweekly
- Community Home Buyer's Program™
- Community Living®
- Community Renovation™
- Community Seconds®
- Energy Efficient
- Expanded Approval®
- Fannie 3/2®
- Fannie 97®
- Flexible 97® & 100™
- HomeStyle® Construction-to-Perm
- HomeStyle Renovation
- InterestFirst™
- MyCommunityMortgage™
- Native American Housing Loans
- Pledged-Asset
- Rural Housing Loans
- Simultaneous Second
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For borrowers who: |
Expanded Approval delivers: |
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Have concerns about their credit histories |
Expanded Approval uses the Desktop Underwriter automated underwriting system to take a comprehensive view of creditworthiness, so that many borrowers previously unable to receive conventional financing are now eligible. |
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For borrowers who: |
Expanded Approval delivers: |
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Seek rates lower than non-conventional rates |
EA provides borrowers with the more favorable rates associated with conventional financing. In some cases, EA offers consumers the opportunity to lower their rates in the future (through the Timely Payments Rewards feature) without the costs typically associated with a mortgage loan refinance. |
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Have limited funds for down payment and closing costs |
Loan amounts can be up to 100% of the purchase price. Borrowers can make a minimum contribution towards the down payment and/or closing costs of either $500 from their own funds, or 3% from flexible sources including gifts; grants; unsecured loans from relatives or nonprofits, employer-assisted housing, or secured borrowed funds. The remainder of the amount needed for closing costs, after the borrower’s minimum contribution requirement is met, can come from flexible sources of funds, interested party contributions, and/or other sources (see Guide to Underwriting with Desktop Underwriter for complete details on qualifying sources.) |
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Want to reduce monthly payments, without costs of a refinance |
The Timely Payment Rewards feature rewards qualifying borrowers with an automatic interest rate reduction of up to 1% after they make timely mortgage payments for a specified period. |
2006 Conforming Loan Limits
Number of
UnitsMaximum original
principal balanceAlaska, Guam, Hawaii,
and U.S. Virgin Islands only1 $417,000 $625,500 2 $533,850 $800,775 3 $645,300 $967,950 4 $801,950 $1,202,925
