Community Lending Homerun Loan Program

The HomeRun program is strictly for owner-occupied primary residences. Non-occupant co-borrowers are not permitted; every borrower listed on the loan must live in the property. Additionally, borrowers and their non-applicant spouses are prohibited from owning any other residential property at the time of the mortgage closing. It is also important to note that CMG does not

Yes, the HomeRun program allows for the use of “Community Seconds.” These are subordinate loans provided by approved state or local housing agencies, nonprofits, or employers. When combined with a Community Second, the Combined Loan-to-Value (CLTV) ratio can go up to 105%, meaning the assistance can cover the down payment gap and closing costs. However, the borrower must still meet the minimum contribution requirement from their own funds (1% for 1-unit properties). The program cannot be combined with the HomeFundIt platform or the CMG Community One Grant.

The Special Purpose Credit Program (SPCP) HomeRun is an enhancement designed to support specific communities. It targets properties located in Majority-Black and/or Hispanic Census Tracts within designated markets such as Los Angeles, Miami, and Washington D.C.. Borrowers purchasing in these areas benefit from reduced pricing and receive $1,500 in Closing Cost Assistance (CCA). Furthermore, the income eligibility cap is raised to 120% of the Median Family Income for these specific tracts, or waived entirely if the tract is also Low-to-Moderate Income, making it easier for a broader range of borrowers to qualify.

The program accommodates a range of credit profiles through manual underwriting. For a standard 97% LTV loan on a 1-unit property, a minimum FICO score of 700 is typically required to allow for a maximum Debt-to-Income (DTI) ratio of 43%. Borrowers with FICO scores as low as 640 may still qualify, but they are restricted to lower DTI ratios, typically capped at 38% for housing and 41% for total debt. Borrowers without a traditional credit score may qualify using Non-Traditional Credit (NTC) sources, like rent and utility histories, with a maximum LTV of 95%.

Yes, education is a mandatory requirement to ensure borrowers are prepared for homeownership. For purchase transactions, all borrowers must complete a homeownership education program prior to closing. This can be done in-person, online, or via telephone through an approved third-party provider. If you are purchasing a 2-unit property, you must also complete a separate landlord education course. A waiver for this requirement, known as the “No Counseling Program Feature,” is available only for borrowers who can document successful homeownership in the past three years, though this option requires higher reserves and down payment contributions.

The HomeRun program is designed for Primary Residences only. Eligible property types include 1-unit detached homes, Planned Unit Developments (PUDs), condominiums, and cooperative units (co-ops). You may also purchase a 2-unit property, provided you occupy one of the units as your primary home. The program strictly prohibits the purchase of 3-4 unit properties, vacant land, and manufactured housing. Additionally, you cannot own any other residential property—such as a second home or investment property—at the time of closing.

Eligibility is largely determined by income and property location. Generally, a borrower’s qualifying income must be less than 80% of the Median Family Income (MFI) for the area. However, this income limit is waived if the property is located within a designated Low-to-Moderate Income (LMI) census tract. Additionally, under the Special Purpose Credit Program (SPCP) variant, eligibility is expanded to borrowers with income up to 120% of the MFI if they are purchasing in specific Majority-Black and/or Hispanic Census Tracts in select markets, promoting homeownership in underserved communities.

The program requires a very low down payment, but you must contribute a small portion from your own funds. For 1-unit properties, including condos and co-ops, the minimum down payment is 3% of the purchase price (97% LTV). Of this amount, the borrower must contribute at least 1% from their own personal funds; the remainder can come from gift funds or grants. If you are purchasing a 2-unit property, the requirements increase: the maximum LTV is 89.99%, and you must contribute at least 5% of the value from your own funds.

No, you do not. One of the most significant financial advantages of the HomeRun program is that Mortgage Insurance is not required, regardless of your down payment size. In most standard lending scenarios, borrowers putting down less than 20% are required to pay monthly private mortgage insurance (PMI) premiums, which increases the monthly cost of housing. By eliminating this requirement, the HomeRun program allows borrowers to maximize their purchasing power and keep monthly payments lower compared to FHA loans or conventional loans that mandate insurance coverage for high-LTV transactions.

The Community Lending HomeRun program is a specialized portfolio mortgage product designed to make homeownership more accessible for low-to-moderate-income (LMI) borrowers. Unlike standard conventional loans that rely heavily on automated algorithms, this program utilizes manual underwriting, allowing for a more flexible assessment of a borrower’s creditworthiness. A defining feature of the program is its ability to offer high Loan-to-Value (LTV) financing, allowing eligible borrowers to finance up to 97% of a property’s value. It is a correspondent product, meaning while it is originated by the lender, it adheres to specific investor guidelines and is not serviced by the originating lender.