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  • Community Seconds Checklist Community Seconds Checklist

Get Community Seconds Checklist Community Seconds Checklist

Community Seconds Checklist A Community Seconds provider or a lender may use this checklist to determine whether a subordinate mortgage program complies with Fannie Mae 's guidelines for Community.

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Fannie Mae guidelines require the lender to review the property's title history and ensure it's clear of any prior ownership claims from previous owners or any judgments or liens, such as unpaid property taxes. Title insurance is required to cover the loan amount on the purchase or refinance of any Fannie Mae loan.

Under the terms of the Affordable Seconds program, an approved lender can provide borrowers with access to a second mortgage that makes it possible for aspiring home buyers to purchase a property with no money down. (The idea being to make housing more accessible and affordable to prospective homeowners.)

The primary difference between Freddie Mac and Fannie Mae is where they source their mortgages from. Fannie Mae buys mortgages from larger, commercial banks, while Freddie Mac buys them from much smaller banks.

Note: Guarantors, co-signers, and non-occupant borrowers are permitted on purchase, limited cash-out and cash-out refinance transactions.

Community Seconds are subordinate mortgages that can help make homeownership more accessible to borrowers. Although Fannie Mae does not purchase Community Seconds mortgages, we do require that they meet certain criteria when they are subordinate to first mortgages purchased by Fannie Mae.

Continuity of Obligation This policy was introduced during the financial crisis, to ensure borrowers who recently acquired ownership of a new property in the absence of a recorded sale of the previous property were properly qualified and it applied to all limited cash-out and cash- out refinance transactions.

For loans backed by Fannie Mae, the main requirements are that the seller carry mortgage must have a minimum term of five years (which will reduce monthly payments), have a minimum interest-only payment, and meet market rates.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232