First time home buyers can now take advantage of a new low downpayment option.
The new Fannie Mae program is available today to help those who have not owned a home in the last three years to get a new mortgage with only 3% down. Buyers who otherwise qualified but lacked downpayment resources can now purchase their new home with a conventional Fannie Mae mortgage. This means you can qualify for the great advantages conventional loans offer. No upfront mortgage insurance. Unlike an FHA mortgage conventional loans don’t add the 1.75% up front fee. On a $200,000 purchase this saves you $3500! The mortgage insurance ends when you have more than 22% equity in your new home. FHA mortgage insurance never goes away. The savings this represents over time is substantial. This doesn’t mean the FHA program still isn’t viable for buyers with lower credit scores or other issues that prevent them from qualifying conventionally. What it does mean is your good credit can now save you thousands of dollars.
Here’s a few facts about the new 97% LTV program:
- Available to first time home buyers (buyers who haven’t owned a home in the past 3 years)
- You must complete new home ownership counseling to qualify.
- No upfront mortgage insurance.
- Mortgage insurance can be cancelled when your equity exceeds 22%.
- 30 year fixed is the only allowable term
- Only single unit homes qualify (this includes single family detached and single family attached).
Call me today to get your pre-qualification letter and get started shopping for your new home.
The Mortgage Firm Melbourne
Company NMLS #189233