Expanded Approval® with Timely Payment Rewards® (EA/TPR®)
An Option for Borrowers with Less-than-Perfect Credit
If you are concerned about past credit problems keeping you from getting approved for a mortgage and being able to buy a home, Expanded Approval® may be for you. With Expanded Approval, lenders can take a broad view of your overall financial situation, not just focus on past credit problems. This way, Expanded Approval helps borrowers with less-than-perfect credit buy a home at a competitive interest rate. In addition, if your lender offers the Timely Payment Rewards® feature, you actually can reduce your interest rate if you make your mortgage payments on time for 24 consecutive months. Many Americans have been able to get into homes with Expanded Approval--so can you!
- With Expanded Approval, you can select a fixed-rate mortgage with a term of 15, 20, or 30 years, or a 30-year adjustable rate mortgage (ARM). With an ARM, the interest rate stays the same for a period of 5 or 7 years (you choose); after that, the interest rate is adjusted each year. (The Timely Payment Rewards feature is offered only on fixed-rate mortgages.)
You can borrow up to the full amount of the purchase price of the home, and only need to contribute either $500 from your own funds, or 3 percent of your home's purchase price (from flexible sources such as gifts, grants, loans from relatives, or employer-assisted housing). This money will go toward closing costs, and/or the down payment if there is one.)