LEXINGTON, Mass. - The Credit Union Mortgage Exchange Service Center, a division of Chittenden Corp. which has been serving the home financing needs of credit union members for over 20 years, recently announced a new product it says makes it possible for more members to purchase a home. The company's new Home Possible Mortgage targets the group of potential homebuyers whose income is between 80-100% of the media for their geographical area. The basic Home Possible Mortgage is available either as a 100% loan-to-value mortgage that borrowers can use for single-family home purchases and no cash-out refinancing, or as a 97% LTV mortgage for one-to-four unit properties. Both versions allow borrowers to put down as little as $500 from their personal funds toward the down payment and closing costs for a one-unit property. Two-unit properties require borrowers to put in 3% of the property's value; and three- to four-unit properties and manufactured home require a 5% borrower contribution. Home Possible is available as 15-, 20-, and 30-year fixed rate mortgages, or as 7/1 or 10/1 ARMs for one-unit properties. The same is true for CUMEX's Home Possible Neighborhood Solution Mortgage that allows for even higher debt-to-income ratios than a typical high LTV mortgage, as well as a 3-year subsidy buy-down that reduces the initial interest rate as much as 1.5 percentage points in the first year and 0.5 percentage points per year for the next two years.
CUMEX Mortgage Service Centers Debuts `Home Possible Mortgages'
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