Will This 3% Down Payment Initiative Be a Game Changer?
Have you been yearning to purchase the home of your dreams but have been sidelined due to high down payment requirements? If so, a recent announcement by Freddie Mac and Fannie Mac will have you jumping for joy. On December 8th, the mortgage giants announced that first time home buyers have the opportunity to qualify for home loans with a down payment of as little as three percent! This recent announcement screams good news for many, as those who have been unable to make the real estate move of their dreams for years will finally qualify.
Through this initiative, the conventional mortgage is transformed to meet the unique needs of low and moderate income borrowers. The maximum loan-to-value ratio of these customized mortgages is 97 percent.
To qualify for this once-in-a-lifetime opportunity, home buyers must complete a borrower education program. Additionally, home buyers must still meet the standard eligibility requirements. This includes underwriting, risk management standards, and income documentation. Qualifying terms state that at least one co-borrower must be a first time home buyer, and you must obtain private mortgage insurance.
The National Association of Realtors is extremely hopeful about this move put in place by the Federal Housing Finance Agency, and is excited to see how many borrowers are able to obtain mortgages through this program.
Contact Andraya Coulter in Pleasanton for all of your Bay Area home buying needs. As a home lending expert in the Bay Area, I can assist in your quest for the home of your dreams. When you choose to work with me, you can expect a unique level of trust, commitment, and knowledge.